Looking to Improve Your Spare Parts Management? Try These 5 Things!
Are you looking to Improve Your Spare Parts Management? Have you Considered these 5 Things?
What is the one thing that almost every organization, regardless of their industry, has in common? The answer is surplus MRO & spare parts. However, most companies look at managing spare parts inventory as a cost instead of a method to cut costs or even generate bottom-line revenue. These companies are continually seeking new ways to reduce costs while improving the plant’s operations.
Your operations must have a comprehensive strategy when managing spare parts and assets. It will allow you to cut costs and provides you with another method for generating value from these assets. Here are just a few ways any organization can drastically improve their spare parts management.
Consider the Economic Impact
When looking to improve spare parts management, one of the first places to start is determining the economic impact of these assets. In the majority of cases, spare parts are considered uneconomical. This is because the parts may be obsolete to your operation or, if not stored properly or unorganized is not prioritized. In addition, warehousing and storing the unneeded spare parts take up valuable real estate resulting in increased carrying costs.
Instead of carrying obsolete assets, your organization should look for ways to use them to create value. One of the most popular ways your organization can leverage these outdated assets is to sell them to the secondary market. By selling these spare parts, you can add revenue to your bottom line while also cutting carrying costs.
Identifying your Inventory
Utilizing a software platform that can identify your complete spare parts inventory allows you to see what may be surplus to your organization. By accurately identifying your inventory, you can get a much more in-depth and accurate understanding of your inventory. This complete view of your assets in your inventory system allows you to see which assets are needed and help you prevent the purchase of unneeded assets and let you know what assets are slow-moving or even obsolete to operations.
Fast and Slow Moving Assets
Once you have been able to identify your complete inventory, the next step to improve spare parts management is to discover which assets are considered fast or slow-moving. By determining the average shelf life of an asset, you can drastically improve your purchasing process.
This will allow you to stop over purchasing slow-moving items that end up taking valuable space in your warehouse, while also giving you insights into assets that need to be continuously replenished to prevent a shut down in production.
Redeploying Assets Across Multiple Facilities
Redeploying assets across facilities within your organization is another way to improve spare parts management within your organization quickly. For this strategy of asset management to be effective, you need to ensure that your inventory is shared across all facilities allowing each location to access and see precisely what assets each facility has.
Once each facility has visibility of all the assets, then each facility can see surplus at each location and recall that asset and redeploy it back into production instead of sitting in a warehouse being unused. This allows you to prevent the unnecessary purchasing of assets and enables you to get the most value out of each asset.
Hiring a Professional Organization
Improving your spare parts management can be a significant undertaking for any organization. Finding the proper employee who can oversee all aspects of spare parts management can be difficult. Luckily there are external resources to help you. If you are looking to improve your spare parts management quickly seek a professional organization specializing in assisting corporations like your with asset management. While each company has different solution offerings, you can look to outsource various aspects of your management process, such as warehousing & logistics or even cataloging assets. By leveraging these external resources, you can add additional expertise to help improve your operations.
NRI Industrial is a global leader in asset recovery and asset management. Our Asset management solutions provide our clients with enhanced visibility on inventory and assets across their entire organization. These services promote the redeployment of materials internally and offer a smooth transition to surplus. Our asset recovery solutions allow companies to recover capital from surplus inventory, capital machinery, and other industrial assets.
By optimizing your surplus, you generate valuable capital that can be reinvested into state-of-the-art new technology or added for use in other functions of your organization. Let us support you in any surplus challenges you may face. We provide turn-key solutions designed to streamline your spare part management operations and maximize the value of your surplus inventory.