Many countries have closed or are planning to close their borders once again due to Covid-19. According to Big Commerce, 2021, pandemics are only one of the reasons for Supply Chain Disruption. Other reasons for this phenomenon are natural disasters, transportation delays/failures, problems with products, price fluctuations, and cyber-attacks.

This causes huge productivity losses.

 

Let’s have a look at how Supply Chain and Spare parts sourcing works.

What are the components of Supply Chain Management?

 

  1. Planning

The organization must decide whether it will manage its logistics itself or hire a logistics company. Logistics is a complex business to be in and often causes a delay in deliveries. Late deliveries have a huge impact on the efficiency of the rest of the supply chain.

  1. Sourcing

When choosing essential suppliers, financial capacity, raw material requirements, distance, and discounts all need to be taken into consideration. This component is often very vulnerable when supply chain disruption takes place. Suppliers can have raw material ready but won’t be able to distribute it, this prevents products to be produced and distributed to customers.

  1. Customer demand

Establish your customers’ needs and how much demand there is for your product. Overestimation of demand can lead to unnecessary loss of capital when too much material is sourced. Excess material will have to be stored or done away with (depending on what the material is).

  1. Inventory management

Effective inventory management is often the difference between profit and loss of revenue. A Computerized Maintenance Management System (CMMS) becomes a key component of Supply Chain Management, assisting in the determination of how much stock is needed.

To prompt a reorder of a certain part, an indication of removal of that part on the record is critical. The same goes for new stock; if it is placed on the inventory shelf without a record, it cannot be accounted for.

To avoid these inaccuracies in inventory, an analysis of your inventory check-out system and stocking system should be conducted. Other things that could help with inventory control is:

  • Using barcode and mobile devices to log inventory
  • Defining spare parts (for example as ‘critical’)
  • Using Key Performance Indicators (KPI’s) to track overall usage (this could help decrease your inventory costs)
  • Using 5s Lean to properly store and manage spare parts in a designated space

 

Courtesy: 5S Today, 2021


How does Spare Parts sourcing work?

 The spare part sourcing process is dependent on whether or not products are still being produced. If products are produced, purchase orders are prepared to get the spare parts from various suppliers. If the product is not being produced anymore, replacing it with updated equipment, or finding a supplier with equivalent replacement parts should be considered. At this stage, the organization might want more control over the supply of parts to keep repairing their assets.

Read more about effective spare parts management.

  1. Production

To meet customer demands critical equipment needs to operate in optimal conditions. Preventive maintenance is key here. Implementing a CMMS to schedule preventive maintenance and get notified when a machine is due for its maintenance will ensure issues are spotted early on and prevent loss of revenue.

  1. Warehousing

With the rise in technology and the use of robotics in warehouses, spare parts have become vital to operations.

CMMS is used in these facilities to improve the amount of uptime, support higher volumes, and conform to tighter delivery requirements. By incorporating a CMMS, everyday processes will be automated meaning less admin and more productivity leading to a bigger revenue and increased market competitiveness, to name but a few benefits.

  1. Transportation

Products must be sent to their final destination(s) in the shortest amount of time, as safely as possible. A CMMS can help prevent untimely deliveries by ensuring products are produced and ready for shipping on time.

  1. Returns

Accepting and processing damaged, unsatisfactory, or general returns need to be facilitated in a timely manner according to an organization’s return policy.

 

Courtesy: Learners Destination, 2020. 

 

With multiple locations, some similar equipment and a supply chain that is disrupted because of Covid procuring parts have become a nightmare. You might be able to get the part, but transportation costs have increased significantly. Several of our clients have benefited from a KPI within Proteus MMX which forecasts PM part usage.  Looking out 90, 180, or 365 days, the Forecast indicates parts needed. In our multi-facility view, procurement can see who has the parts in other facilities as well as when they were last used. Clients using this feature have avoided expediting parts and excessive downtime by finding parts within their own organization at other locations.

To learn how Proteus MMX can help you, specifically, in your supply chain management and spare part management strategy, call us at +1 (262) 241-3845, send us an email or schedule a demo.