Stock outs are expensive
Consider these two scenarios:
You have planned a shutdown the production line and everyone is in place to execute the maintenance as scheduled. Unexpectedly, you are told that a critical machine has worn more than predicted and needs to be replaced. You have no spares in your stores. Do you extend the shutdown while you wait for a new part to arrive, or restart it the line, and hope that the machine does not fail unexpectedly before the next shutdown? Both options will cost you over $100,000. Despite your best preventative maintenance efforts, a critical pump has failed and needs new bearings. You have none in stock. The production losses are over $10,000 an hour, and an expensive rush order from your supplier will take over 3 hours to deliver. This is in addition to the time it will take to fix and realign the pump.
As both examples show, inadequate stores of stock can cost you a vast amount of money. Forgetting to order a replacement set of bearings, or failing to stock a replacement for a critical machine could be very costly.
Failing to having a part in stock when it is needed is known as a stock out. There are several reasons why a stock out occurs, but the most common is failing to reorder a part once it has been used. In this blog we will talk about preventing stock outs.
Stock outs are preventable
Stock outs are preventable with the help of an automatic reordering system. The automatic system tracks parts as they are used. When the number of spares falls below a critical number the system then automatically sends a reorder notification to you and your supplier. All you have to do is track supplies as they are used and set a critical number to trigger a reorder.
Preventing stock outs with your CMMS
Your CMMS is the best place to track your stock use. All you need to do is record the number of parts that were used to complete each work order. Your CMMS will then automatically reduce the number of parts in your stock. Then, as your stock falls below its specified level it can send an RFQ to your supplier for replacements.
This functionality is easy to setup in a Fiix CMMS. Simply add your parts and supplies into your Fiix CMMS and set automatic reordering triggers for each. Then, consume the parts in your work orders. When you are running low (but not out!) of stock, an automatic RFQ will be sent.
Go and give it a try. Using the parts and supplies feature in your Fiix CMMS is easy.