“Saving” as the concept goes, always pay off in the long run. In this case, think beyond money. For example, take the case of the construction industry. Savings here pertains to creating a spare parts inventory for every construction business.
Having and maintaining a proper service level is an important aspect of this industry, especially when it comes to effective spare parts management and supply. Possessing good quality spare parts can offer several benefits across several levels of operations.
The speciality of spare parts
What is it that grants a special status to having proper spare parts inventory? The answer to this is that the demand of spare parts is often characterised as being “intermittent”. This means that the demand arrives at an infrequent rate and is extremely dispersed by time periods. To put it simply, the demand is extremely sporadic. This lumpy characteristic of demand arrives whenever a component fails or requires a replacement. The complexity is furthermore stretched owing to variability in quantity and order size.
Due to this sporadic nature of demand, the regular forecasting principals and techniques often does not apply. Thus, alternative methods have to be employed for ensuring a smooth flow of the return on investment. A structured and proper management is the way to go.
Benefits of an effective spare parts inventory
High Service level
The easiest way to sum up this advantage is that of having the right spare parts at the correct time and place. This allows business to be conducted in a more efficient and effective manner. Having the correct spare parts in stock allows business to be conducted smoothly without halting even after a major breakdown thereby preventing the loss of crucial time and wage while waiting for the correct parts to meet market demands.
Thwart unwanted Expenses
Initially the purchase of spare parts might be a tad expensive but this cost is almost negligible as compared to the expenses encountered during a breakdown sans the proper spare parts at hand. The unavailability of vital spare parts can often cause the entire plant to shut down. Work and production is ceased while the wait is still there for the arrival of the new spare parts. The affected machinery might need to be shut down which often leads to the missing of vital deadlines and thus cause the loss of clients.
Effective control over the processes
You might have been the victim of being handed over duplicate spare parts with numbers that has no co-relation to the reality. This mess can be avoided by exercising an effective control and having a proper systematic management of a spare part inventory.
Tales are often heard about employees who in a desperate attempt to avoid a major downfall/ shut down resort to conducting a “patch job” on the machinery. This usually leads to an even more expensive damage of the equipment. Having the correct at the required time helps in tackling this problem thoroughly.
Enhanced equipment uptime
Strong and effective spare parts management systems reduces the chances of downtime supply due to the lack of timely availability of the correct spare parts. Along with this comes an improved fix time rate that naturally leads to more savings. Efficient spare part management helps reduces the time wasted on assets that are unused.
Along with this come the following benefits
- Enhanced transparency that leads to an effective management of spare parts inventory
- Reduced cost that is caused by having obsolete spare parts
- Reduced tacit knowledge by formal component specifications
Having an effective spare parts inventory and managing it the proper way is necessary and crucial for any construction business. Get the best and the most essential spare parts ranging from filters to bearings and also find the best of heavy duty equipment online, only at Metacrust.com.