There seems to be a common belief in spare parts inventory optimization that a complete solution can be achieved by tackling just one aspect of the spare parts inventory. But this isn’t really the case. It takes a range of actions to achieve spare parts inventory optimization. For complimentary access to

If the goal really is spare parts inventory optimization, then surely doing the work after the parts have been purchased is just wrong. Shouldn’t we be taking action before the parts are purchased? Shouldn’t we be talking about inventory prevention?   For access to this post, and all of our

To reduce the value of spare parts items held is the last of the 7 Actions for Inventory Reduction and is probably the most obvious, but perhaps because of that the most overlooked. Most cost reduction actions are aimed at reducing the cost of an item for the obvious profit and

Each of the actions discussed in this series so far has been looking at ways to reduce the physical number of items held.  However, one of the variables that drive the cost of holding inventory is how long you hold the inventory.  This represents the amount of time that you

As discussed in other articles in this series, there are essentially two actions that you can take to reduce spare parts inventory: remove existing inventory or reduce the amount of inventory going in. We call this the bathtub principle because it is similar to pulling the plug in a bathtub

With inventory reduction there are essentially two actions that you can take: remove existing inventory or reduce the amount of inventory going in. We call this the bathtub principle because it is similar to pulling the plug in a bathtub to let water out or closing the faucet to reduce

The first two actions in the Inventory Cash Release Process (Have Someone Else Hold and/or Pay For Inventory and Sell Excess and Obsolete Stock) both involve taking items out of the inventory and this is also the case with Action #3: Eliminate Duplication. Almost by definition, spare parts duplication adds no

Operationally, excess and obsolete inventory items generate little interest because they do not create emergencies and so few companies pay much attention to this inventory unless or until they undertake a specific program of review. In the normal day-to-day management these inventory items are mostly ignored and the focus tends

This post is set up as a portal to the series of items relating to the Inventory Cash Release Process. This process is specifically designed to assist companies managing spare parts with inventory optimization and reduction.   The Inventory Cash Release (ICR®) Process, is a structured step-by-step inventory optimization technique that