Together with Chad Hawkinson, Chief Innovation Officer at Baxter Planning, we discussed the current trends and innovations in the service supply chain space.
Chad shared how Baxter Planning helps companies optimize spare parts management, reducing inventory by 25% and saving customers over $500 million in 2024. We also discussed their focus on AI and machine learning for forecasting and digital twin simulations to improve resiliency.
Some of their notable successes include a 20% improvement in first-time fix rates for Beckman Coulter. Chad also shared some of their upcoming products, including real-time visibility tools, AI-driven ETAs, and a module for budget-constrained planning. He also emphasized the importance of specialized solutions for service parts management.
Connect with the Guest:
Chad Hawkinson has over 20 years of management and product leadership experience in both private and public companies. Most recently, he was Chief Product Officer for Vertafore, a Denver-based software company focused on the insurance industry that was sold to Roper Technologies (NYSE: ROP) in 2020.
Prior to Vertafore, Chad was the Senior Vice President and General Manager for a $350M division of IHS Markit (NASDAQ: INFO), where he managed over 1,000 employees across product development, sales, marketing, data science, and professional services. Mr. Hawkinson has done business in over 30 countries. Chad has a Bachelor of Science in Mechanical Engineering from Virginia Tech and a Master of Business Administration (MBA) degree from MIT. Outside of Baxter, Chad enjoys spending time with his family and friends in Colorado. He also teaches engineering classes part-time at the University of Colorado at Denver. Chad formerly led Product, Technology, and Professional Services for Baxter.
Highlights & Show Notes:
- [00:47] Chad shares his background—20 years in supply chain software, three years at Baxter Planning, and his role in driving innovation and product strategy.
- [03:45] Understanding the service supply chain—balancing warranty obligations, spare parts availability, and cost efficiency to optimize service operations.
- [04:22] Service business growing faster than product sales driven by higher customer demand and stricter service level agreements.
- [06:12] Cost containment focus with rising inflation inventory optimization and shift to repairing and harvesting parts for sustainability.
- [08:52] Looking at customers successes. Helping clients cut inventory by 25% while improving service levels, leading to significant cost savings and efficiency gains
- [11:19] New customers seeing a 16% inventory reduction and a 4% service level increase within six months, highlighting fast ROI and operational impact.
- [12:32] The rise of “AI washing” in the software industry and Baxter Planning focusing more on predictive AI to help their customers and using digital twin simulations to help model supply chain networks.
- [14:02] Forecasting spare parts demand with AI to help prevent delays and proactively resolve potential supply chain issues.
- [17:33] Unique approach in combining SaaS software with expert consulting to guide customers in optimizing their supply chain performance.
- [19:37] A partnership with Beckman Coulter led to a 20% improvement in first-time fix rates while maintaining flat inventory costs.
- [21:52] Expanding the R&D team 5x over the past three years, leading to a wave of new products enhancing both planning and execution in supply chain management.
- [22:45] Upcoming innovations include LynX for real-time order tracking— seeing problems coming before they actually happen.
- [23:17] Releasing a new product called Snapshot, which allows in responding to customer’s problems faster.
- [25:21] Ensures rapid ROI by integrating seamlessly with existing ERP and inventory systems, delivering measurable value within the first year.[27:53] Advice on future-proofing service supply chains with the help of technology.
Quotes from the Episode:
About the Host:
A wonderful conversation with Chad Hawkinson! I am your host, Andrei Palamariu, Founder of Supplify and Head of Innovation at Alcott Global. At Supplify, we connect the supply chain tech ecosystem via a digital platform. We match corporations with top tech companies to solve their supply chain and logistics challenges. If there is anything tech in the supply chain, contact me.
Alcott Global provides executive search solutions for key positions at all pillars of end-to-end value chains, from general management to overall supply chain operations, including executive and non-executive board roles.
On April 9-10, 2025, we are bringing together 80 C-level executives from multinational companies to connect, collaborate, and innovate on a forum focused on business value creation at Makers & Movers.Yearly, at Leaders in Supply Chain Awards, we recognize The Leaders in Supply Chain who push for excellence and inspire the future of the industry through exceptional leadership and operational excellence.
Yearly, at the Leaders in Supply Chain Awards, we celebrate and award the Top 30 Leaders in Supply Chain who push for excellence and inspire the future of the industry through exceptional leadership and operational excellence.
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