How to Optimize Your Maintenance Spare Parts Inventory

Economic demands place increasing pressure on executives and managers to reduce costs while maintaining high levels of operational safety and reliability. For Work Management and Supply Chain leaders, areas of potential savings lie with:

• optimizing inventory levels while reducing associated carrying costs,
• minimizing or eliminating expediting costs, and
• eliminating losses incurred as parts become obsolete in the warehouse

… while providing the highest level of parts availability.

While every company’s circumstances are unique, StrategyDriven Advisors observe significant avoidable expenses incurred because of work management – supply chain program misalignments, including:

• inventory reduction of 10 – 25 percent
• near elimination of expediting costs
• significant reductions in warehouse spoilage and obsolescence

As a complimentary supplement to this video, StrategyDriven’s Maintenance Inventory Optimization, Work Management – Supply Chain Interface Barriers whitepaper presents the sixteen most commonly occurring work management – supply chain program barriers our advisors have identified when helping clients optimize their inventories. We believe these barriers represent an excellent starting point to evaluate the sufficiency of your company’s spare parts inventories.

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About the Author

Nathan Ives is a StrategyDriven Principal and Host of the StrategyDriven Podcast. For over twenty years, he has served as trusted advisor to executives and managers at dozens of Fortune 500 and smaller companies in the areas of management effectiveness, organizational development, and process improvement. To read Nathan’s complete biography, click here.