Parts and inventory management software

What is a spare parts inventory software?

Spare parts inventory software automates many of the processes involved in inventory management. From ordering service parts to forecasting inventory you’ll need for upcoming maintenance, the software automates many of these processes to save teams time and money.

Should spare parts be included in inventory?

Yes, spare parts should be included in inventory. Overall, spare parts include items that are part of an asset. Companies opt to replace parts that have degraded and are reducing the normal function of an asset. Companies also keep these items on hand to ensure there is no waste or stoppage in the production process. Spare parts inventory is needed for the maintenance and repair of final products, industrial machines, and equipment.

What are the benefits of a spare parts inventory software?

Here are five benefits of using a spare parts inventory software:

1. It allows for automated inventory management, which means higher productivity. Teams can get more done in less time, with less risk of human error, since the inventory management system is automatically updated. For example, the software automatically updates the inventory to reference any parts used for repairs—rather than manually entering the update. From here the system can even order ahead if parts fall below a minimum quantity in the storeroom.
2. It has inventory forecasting capabilities, which helps teams and managers anticipate what parts will be needed for upcoming maintenance work, even factoring in seasonality, asset functionality, and changes to production. This allows you to order parts in advance and avoid stock outs or overspending.
3. It keeps teams organized. You can find if a part is available at another site or location, rather than having to order if you’ve run out.
4. It prevents stock outs. When teams don't have a clear picture of inventory, it can be easy to run out of stock without knowing. With a spare parts inventory software you’re able to see all your inventory information in one place so you can prevent a stock out. Stock outs can cause maintenance repairs to be delayed, which puts assets at risk of breakdowns or prolongs asset failure, disrupting production.
5. It improves supply chain operations. With a spare parts inventory software, teams can diversify their strategy for part orders instead of relying on just one supplier. With this software, you can record all vendor information in one place, store vendor contracts, rate sheets, warranties, and certificates of insurance. You can also group vendors by trade and add notes about preferred and non-preferred vendors. Since the inventory software can forecast ahead of time, you can prepare for specific seasonality, and order the amount of stock you need from a specific supplier in anticipation of supply chain slow downs.

What are some spare parts inventory management best practices?

There are seven best practices for improving the management of parts inventory:

1. Identify all parts and record their details in a systematic way. Items should be added to the inventory control system and placed into parts inventory.
2. Use and manage the bill of materials (BOM). BOMs will make ordering parts and placing future work orders much simpler. Having accurate BOMs will also assist you with scheduled preventive maintenance on assets needing repairs or replacements.
3. Streamline the work order process. Implement a thorough yet simple work order process that everyone can follow. Software, like a CMMS, is very helpful for developing work orders and keeping important and relevant information all in one place. Work orders need to be created for all parts issuance so that inventory remains accurate.
4. Adopt security measures. Ensure that effective security measures are taken in the parts warehouse. This can include limiting access to the parts warehouse so that inventory can be accurately maintained and to prevent parts from going missing. Adopt a policy that parts inventories are off limits, and only parts department employees have access.
5. Centralize and consolidate parts. Where possible, centralize and consolidate satellite parts inventory into your main parts warehouse. Having all your parts centralized and consolidated can make security easier and allow for more control over inventory accuracy.
6. Use an inventory control system. By using your ERP’s warehouse functionality, a CMMS, spare parts inventory software, or a warehouse management system (i.e. not spreadsheets) to manage your parts inventory, and you can ensure greater accuracy and ease of managing your parts warehouse. Also, using barcodes and scanning functionality in conjunction with the system will greatly enhance the efficiency of the processes in the parts warehouse and improve inventory accuracy.
7. Give every part a stock location so employees can easily locate them. Ensure that stock locations are created (typically a bin and slot location for each SKU) in your system. It can be difficult for employees to locate a part if the location identifier is a shelf where many other parts are in a shared location.