Reduce supply chain problems and optimize asset performance with inventory management software

Parts inventory management has always been a critical and complex challenge. Having the right part in the right quantity at the right time and in the right place requires planning, precision, and balance.

• Improved inventory accuracy – Understand exactly how many spare parts you need to have in-stock to avoid shortages and associated downtime. Inventory will be fully stocked without extra parts collecting dust on your shelves.
• Saved time and money – By keeping track of which on-hand parts, the need to perform an inventory recount to ensure accuracy is eliminated. You will no longer need to place as many emergency, expedited shipping orders for critical spares when they are needed.
• Increased efficiency and productivity – Barcode scanners and spare parts inventory software help improve efficiency and productivity of both your equipment and staff. They streamline processes so employees can work on special projects, or further optimization of maintenance procedures.
• Improved customer satisfaction – Respond to requests and work orders quickly and efficiently with effective inventory management.

1. Categorize your parts inventory

• Active parts inventory (10 or more used each month)
• Commodity parts (1 or more used each month)
• Rarely used parts (fewer than 1 used each month)
• When stocking parts inventory, consider factors including lead time, consumption rate, the costs associated with storage, and the potential costs and consequences that would be incurred if you did not have a needed part.

2. Set agreed-upon parts stocking and reorder points

This can help you avoid a feast-or-famine scenario where you have excessive parts inventory—or not enough. Standardize your methods for determining when and whether to stock a part—and in what quantity. Using consistent criteria to make parts inventory decisions can streamline the process, make it easier to identify priorities, and make communicating decisions easier.

3. Improve your supply chain management

Materials providers, shipping partners, and other parties directly impact your spare parts inventory. Though you cannot singlehandedly eliminate supply chain issues, you can take steps to optimize your relationships with your suppliers and shippers. Good two-way communication is essential. Track lead times using a parts inventory software to identify potential slowdowns or bottlenecks.

4. Use data to drive parts inventory decisions

Start with usage probabilities and optimize your parts inventory over time. Parts inventory management software goes beyond spreadsheets to integrate with other tools, reduce manual data entry, and make tracking easier and more accurate.

5. Ensure inventory accuracy

Conduct a cycle count to match your physical parts inventory with your inventory records. Cycle counting is a method designed to fit into your normal operations. A parts inventory software solution makes accurately tracking your inventory easier.

There are multiple inventory accounting methods. A first in, first out (FIFO) strategy is important if your inventory includes any parts or products that have limited shelf lives, such as chemicals or pharmaceutical ingredients. Track all of their expiration dates in parts inventory software to avoid spoilage.