Maintaining a quality spare parts inventory management system is essential for the growth of any manufacturer or support team. Keep in mind that substandard management of spare parts control can set about inefficient storage of inventory and cause scarcity of spare parts when you require them the most. This leads to unexpected downtime and unpredictable extra costs. Therefore, investing in an optimized spare parts inventory management system is better for the growth of the overall business. This blog will centre around all the essential hacks and tips to manage and optimize your spare parts inventory. Let's jump straight to it!
7 Hacks for optimizing spare parts inventory
An accurate parts inventory system allows the parts department to be more proactive and responsive. Here are seven spare parts inventory management best practices for managing parts inventory more effectively:
1. Select a Method for Labeling key elements
It's probably the most obvious point, but it's one of the essential details that need to be emphasized. Label every component distinctly so that it is easy to classify. Well, there are two common ways to categorize your inventory and label it: the ABC analysis and XYZ analysis.
It has been said by the AICPA ( Association of International Certified Professional Accountants) board that ABC analysis is adopted for categorizing inventory depending upon the consumption value of the item. Here, the consumption value is depicted as the total value of a commodity consumed over a particular period.
Whereas the XYZ analysis is adopted to label inventory products depending on the product's demand.
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