Baxter Planning will lead IBM’s efforts to transform its service supply chain’s parts management system, the companies said Thursday.
Baxter, a leading provider of service parts management technology, entered into a five-year agreement with IBM to deploy predictive service supply chain solutions, the company said, to unlock millions in operational cost savings annually.
The cloud-based solution will replace IBM’s legacy IT systems which will allow IBM to automate and optimize its service parts inventory. Baxter said the new system will reduce unnecessary inventory and logistics costs while improving customer service. Baxter’s predictive solution leverages artificial intelligence (AI) to automate various aspects of service parts management across IBM’s field services worldwide, the company said. IBM said the partnership with Baxter builds on years of collaboration and service and will support the company’s predictive planning vision.
“Baxter’s technology, expertise, and vision in automating and optimizing the entire Service Parts Management process became the clear choice for us,” said Shannon Beecher, VP of Service Supply Chain at IBM. “The platform from Baxter Planning will help us better serve our customers, reach our sustainability goals, and increase our supply chain resiliency.”
IBM currently manages more than 350,000 parts and products, totaling more than $300 million in active inventory across 74 countries.
“IBM is the global leader in driving innovation and business transformation in this area, and we are honored to be their partner in this strategic Service Supply Chain initiative,” said Marten Gustafsson, Chief Revenue Officer of Baxter Planning. “Shannon and her team are leading the Service Supply Chain industry by putting their customers first and foremost. IBM fully understands how vital service field operations are to customer retention and business growth.”