Do you label your spare parts inventory as fast and slow moving?
If you do, then I think that you are wasting your time.
Watch the video find out why.
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Video Transcript
Hi, my name is Phillip Slater and for the next couple of minutes I’d just like to give you something to think about.
If you’re managing spare parts inventory for use in your own company’s in-house plant and equipment, do you label some of that inventory as fast or slow moving? Because if you do, I think you’re wasting your time.
You see the idea of fast and slow moving inventory comes from the retail industry, where it’s really important to understand if your shelf space is being used productively. That is, are you selling the items that you’ve got in stock.
But when you have spare parts for use on your own plant and equipment, the issue is entirely different.
What you’re most interested in, is understanding whether you can get the part that you need, when you need it. And it really doesn’t matter whether that part moves often or infrequently. What matters is that you can get access to the part that you need, when you need it.
So whether it’s slow moving doesn’t matter because if it’s been in stock for 5 years and it’s still in good condition and still usable and you haven’t used one. But you need it and you can’t get one quickly and easily. Then you are going to have to stock it anyway.
You don’t get rid of that item just because it’s been on the shelf for a few years. Whether it’s fast or slow moving is irrelevant. What matters is the application of the part on your equipment.
Anyway, that’s just something to think about, my name is Phillip Slater.