Poor Part Management Costs M&E Sector £Millions

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£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.

Insights

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.”

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Article written by Brian Shillibeer

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