It is important to specifically categorize insurance spares in your inventory. If you don’t categorize insurance spares you may find that you stock a lot of value in this type of spare part but cannot segment those spare parts and therefore subject them to appropriate scrutiny. With appropriate scrutiny you can ensure that you only […]
Implementing Vendor Managed Inventory
The following question was asked by a supplier of MRO and spare parts (as you will see), however, I though that the response might be instructive for everyone that manages inventory so have included it here. Q: I work for an MRO distribution company and would like to inquire about getting materials or information on […]
Inventory Accuracy: Extract from Webcast
The following video is an extract from a recent webcast on inventory accuracy and Why it Matters. Here Phillip Slater discusses two different definitions of inventory accuracy. Understanding that, from an inventory management perspective, we need to be concerned with accuracy at an individual item level tells us that to maintain an accurate inventory companies […]
Inventory Accuracy Definition
The idea of providing an inventory accuracy definition may seem a bit redundant – after all the word accuracy is understood and who doesn’t want an accurate inventory? The purpose of providing this inventory accuracy definition, therefore, is to provide a useful inventory accuracy definition so that the actions required to maintain an accurate inventory should also […]
Inventory Reduction: Why 30% is Easier to Achieve than 3%
Here is something to think about: it is easier for companies to achieve a 30% inventory reduction than a 3% reduction. I know that this statement is counter-intuitive so you may be saying to yourself: How can that be, surely achieving a lower target is easier than achieving a higher target? After all, don’t […]
Achieving Accurate Inventory Records
If you are on LinkedIn you may know that I am an active contributor to various forum discussions. A few days ago I made the comment on one such discussion on how to control inventory. My comment was: ‘Controlling inventory is simple – after all it (usually) doesn’t get up and walk away […]
Spare Parts Management eBook
Subject Area: Spare Parts Management eBook The Problem with Spare Parts Management at Large Companies Managing spare parts at a large company presents a unique set of challenges and problems. It is only by ensuring continuous and wide-spread access to information and training that is credible, reliable, and practical, that your company can […]
Stock Turn Definition
Stock turn is one of, if not the, most important metrics that you can use to measure the effectiveness of your spare parts inventory management. However, like all metrics you do need to calculate it and use it in the right way. One of the most common issues with stock turn measurement is that companies […]
The Spare Parts Repair or Replace Decision
Recently I needed to make a spare parts repair or replace decision because I experienced something that might be familiar to some readers – an equipment breakdown! Last week I was mowing the lawn at the back of my house when my 15 year old lawn mower just gave up. There I was with the […]
Definition of Just In Time (JIT)
Just In Time (JIT) is perhaps the most often quoted, and yet misunderstood, term in management. JIT, developed as one pillar in the Toyota Production System (the other being autonomation), is a production management method that aims to eliminate waste and improve product flow on a production line. This is usually achieved through the application […]