Business Challenge Alcatel-Lucent’s service logistics division was not content with their customer satisfaction levels on same and next-day service contracts. On top of that, they were sitting on millions of dollars worth of excess inventory. The company’s Supply Chain Network services division launched a groundbreaking initiative. Their vision was to improve customer service, build loyalty and win new customers with better service as their main competitive advantage. The caveat to this initiative was that the improvements in service could not come at a higher cost - in fact, costs needed to go down. Their existing parts planning system, while adequate to maintain their existing service levels, did not have the ability to factor in the true costs of inventory stocking. Hidde

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