On Wednesday, 2 February Virginia Domina, Supply Chain Manager at KPMG and Adriano Garibotto, Co-founder of Creactives hosted a webinar on Global virtual Inventory Optimization and Governance for your spare parts . This webinar was an initiative of PICS Belgium, an organization for Logistics and Supply Chain Management professionals.
How to optimize your spare parts inventory
Spare parts are complex items to manage and represent high investments for companies. A lack of correct planning can lead to inefficient inventory storage (with high associated costs) and a shortage of parts when needed, causing unplanned downtime. For this, optimized spare parts inventory management is key to the success of companies with large SKU inventories.
Steps to optimize your spare parts inventory
The starting point - and critical enabler - for any business process optimization is high-quality data, with the prerequisite that all materials be correctly categorized, duplicates found, and accurate descriptions adopted.
Once high data quality is guaranteed, it is possible to proceed with the following stages:
- Categorize: understand the demand behind each SKU and categorize it according to its demand profile (stable or unstable), frequency, predictability, and whether it is planned or unplanned.
- Forecast: apply forecasting methodologies for the parts not considered by planned maintenance, but which are nonetheless frequently in demand. Clear visibility of mean time between failures, utilization rate, and life cycle will result in a more accurate forecast.
- Plan: consider and plan the consumption for materials that are part of the planned maintenance (never forecast what can be planned). Good communication between maintenance and purchasing teams is fundamental.
- Design: study how many spare parts should be stocked and where. Design the possibility of central or local stocks based on the nature of the demand.
- Sustain: put sustainable processes into place to ensure high adoption and create ownership of the stakeholders.
How KPMG and Creactives can help
- Data quality is the foundation for inventory optimization initiatives.
- Close collaboration and communication between departments, especially maintenance and purchasing, is key to success.
- Developing a spare parts inventory study makes it possible to achieve working capital optimization and savings in procurement and organization improvement.
- KPMG's expertise in procurement, supply chain and data-driven transformations, combined with Creactives' unique artificial intelligence, makes end-to-end inventory visibility possible and realizes our customers' highest potential worldwide.
If you missed the webinar or would like to revisit it, we invite you to watch the recording and download the slides. If you have any further questions or comments, do not hesitate to reach out to the relevant expert listed on the top right.
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Below you can re-watch our webinar or Creactives demonstration and benefits. Should you have any further questions or comments, do not hesitate to reach out to our experts.