It is not widely recognized that MRO and spare parts inventory is fundamentally different to other inventory types. As a result, companies continue to apply standard inventory management techniques to their spare parts inventory and end up with significant over-stocking of parts that don’t move and costly stockouts for those that do.
In short, this approach costs them big bucks through both excessive and unnecessary inventory spend or extended downtime, or both.
Beware the Trap of Generic Spare Parts Inventory Management Solutions
Companies that do recognize this difference and modify their inventory management accordingly actually achieve the multiple benefits of increased availability, reduced inventory holdings and lasting results. This is because once you recognize the trap of applying generic solutions to a specialist problem, you stop wasting time and money on generic solutions.
The first step is to understand why treating spare parts as ‘just another inventory’ costs you big bucks.
Free 10 Minute Video
This short video explains how spare parts inventory is different to the type of inventory upon which standard inventory management techniques and theory is based. The differences are significant and important.
From this video you will learn the 8 ways in which spare parts inventory is different. These are explained, along with examples of how FMCG inventory and spare parts inventory differ.
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