The methods used to determine spare parts and stocking are often less than scientific in their approach. Incorrect stocking strategies are commonly exacerbated by poor inventory lifecycle controls, which lead to gross overstocking. Identifying a methodology to optimize spare part stocking strategies utilizing engineering and data is critical to recognize significant cost savings. Implementing quality metrics and processes results in the continued refinement of these strategies to maximize savings while avoiding stock shortages.

Many of us have either seen, performed, or been the recipient of spare part selection as part of a newbuild project or when a new piece of equipment was purchased. It usually goes one of several ways (or some combination thereof).

This paper examines the causes and effects of inventory overstocking, how to determine if your inventory is overstocked, and how to optimize and maintain adequate part levels. Download to learn more.