The best sourcing and procurement procedures are of little use if the parts purchased are not available in the right place at the right time. There are many possible approaches to storing, handling and issuing spare parts and consumables, especially in the area of Maintenance, Repair and Operations (MRO).
According to the research about plant key success factors through spare parts inventory management, maintenance cost represents 15% to 60% of the total operating cost. In other words, every 33 cents out of every dollar spend, will become the cost of ineffective maintenance. Hence, there is a need to improve the maintenance effectiveness as it can significantly increase profits and competitive age. Since spare parts are an integral part of plant maintenance, the effective inventory management of spare parts is critical in ensuring the safe and reliable operations of the plant and the company (Sharif, et al., 2019).
In this White Paper, we look at the challenges in the road towards effective management of spare part inventory and how these can be fulfilled under an Integrated Supply approach.