Parts and inventory management software

Should spare parts be included in inventory?

Yes, spare parts should be included in inventory. Overall, spare parts include items that are part of another asset. Companies keep these items on hand to ensure there is no wastage or stoppage in the production process. Spare parts inventory is needed for maintenance and repair of final products, vehicles, industrial machines, and equipment.

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. Utilize 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 that need repairs or replacements. In some systems, the PM schedule will generate a work order with the scheduled date of the PM.
3. Streamline the work order process - Implement a thorough yet simple work order process that can be followed by everyone. 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 inventory so that inventory can be accurately maintained and 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. Utilize an Inventory control system - By utilizing your ERP’s warehouse functionality, a CMMS, or a warehouse management system (i.e. not spreadsheets) to manage your parts inventory, you can ensure greater accuracy and ease of managing your parts warehouse. Also, utilizing 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.