The Leading News & Information Service For The Facilities, Workplace & Built Environment Community

Poor Part Management Costs M&E Sector £Millions

ByBox paper
17 June 2019

£millions are being wasted on poor management of spare parts - that’s the message from a survey of the top FM service providers published in a new white paper.

The paper is published by ByBox and is entitled ‘Is the management of spare parts the last hidden cost in the FM supply chain?’

According to the paper. there is no standardised way of getting spare parts to engineers and most FM firms use a variety of different distribution methods depending on the site, the spare, the location and the client. As a result, engineers spend more time looking for spare parts rather than fixing plant.

Another problem identified is that more stock is usually ordered than needed and is often more costly due to purchasing models. The knock-on effect further reduces tight margins and customers’ SLAs are missed, thus incurring penalties. But, many procurement departments within FM service providers often consider the problem too tough to tackle.



At a time when margins are under extreme pressure, how do FM service providers balance the need to reduce the cost of managing spare parts while improving performance and boosting productivity? In this white paper, ByBox shares insights about the approach FM providers are taking to spare part management and delves into some of the challenges involved.

Solutions offered in the paper to removing these hidden costs include:

  • Centralising procurement and distribution methods of M&E spares.
  • Greater reliability and proactivity from the supply chain to be able to source parts from one location before the day starts.
  • More standardisation of assets and parts within buildings including architects, specifiers and construction firms putting a stop to the installation of systems manufactured/maintained by one-man bands where any spares come from a single source supplier.
  • The ability to store more critical spares in a fixed location close to or on site.
  • Better use of CAFM systems to manage inventory at site level, improving the use of data to better forecast maintenance needs.

ByBox provides smart locker technology and field service solutions. “We were surprised at how decentralised the FM industry is,” said Stuart Miller, CEO. “The commonality we found across the sector was the disruption caused by engineers purchasing their own stock. This behaviour - albeit born out of necessity – not only affects engineer efficiency but the entire supply chain, budgets and relationships with other departments such as procurement and finance. Better use of data and distribution methods, will improve SKU optimisation and engineer efficiency as well as streamline internal processes and reduce overheads.”

Picture: You will be asked to enter your details. To download the white paper - Click Here


Article written by Brian Shillibeer | Published 17 June 2019


Related Articles

Machines Get Better Healthcare Than Humans By 2020

A new study from Vanson Bourne has found that 75% of IT and field service leaders believe that machines will receive better, preventative healthcare than human beings by...

 Read Full Article
'Smaller' Firm Gets a Cracker at Cheesegrater

Optimum Group Services has been appointed to undertake M&E, PPM and reactive maintenance contract at 122 Leadenhall Street aka The Cheesegrater which is managed by...

 Read Full Article
NFU Mutual Sells Eight Prime UK Logistics Assets to Barings

Barings, a subsidiary of MassMutual, is to acquire a portfolio of logistics properties from NFU Mutual in a deal worth £234 million. The eight assets are all...

 Read Full Article
Amazon Looks to Offload 10m Square Feet of Warehouse Space, Reports Suggest

Amazon is looking to sublet or terminate leases of excess warehouse space due to a drop in online shopping, says Bloomberg. According to the news report by Bloomberg,...

 Read Full Article
BAM FM Wins Hard FM Contract With

BAM FM has been awarded a three-year hard facilities management contract with online home and lifestyle retailer The contract will encompass both mechanical...

 Read Full Article
High Performing Buildings – October's Roundup

This month, we are focussing on high-performing warehouses and industrial spaces. The growth of e-commerce could drive demand for 92 million sq ft of warehouse space...

 Read Full Article
Industrial and Logistics Property in High Demand

The number of logistics and industrial property leasing deals was 70 per cent higher than usual in Q1 of this year. New data from Cushman & Wakefield suggests that...

 Read Full Article
Linakar Awarded Multi-Million Pound Liverpool ONE Deal

M&E specialist Linaker has won a contract to manage the planned preventative maintenance and reactive works for Liverpool ONE shopping centre. The multi-million...

 Read Full Article
£80 Million National Lifts Framework Renewed

Procurement organisation, Fusion21, has announced the renewal of its national Lifts Framework. Worth up to £80 million over a four-year period, the framework is the...

 Read Full Article
Skanska Wins Contract for 20 Ropemaker Street

Skanska has won a £240 million contract to construct 20 Ropemaker Street in Central London for Great Elm Assets Limited, in association with Old Park Lane...

 Read Full Article