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
ABM Wins M&E Contract With Transport for London

Global FM business ABM has signed a contract with Transport for London to provide mechanical and electrical services across the London Underground network. ABM has...

 Read Full Article
British Land Secures Planning for Southwark Logistics Hub

British Land has received a resolution to grant planning permission for a logistics hub in Southwark, the latest scheme in their London urban logistics...

 Read Full Article
Completion of UK’s Largest Warehouse Refurbishment Project

The UK's largest strip-out, demolition, and refit of a warehouse project is now complete. The 661,000 sq. ft (60,000 m2) space at the former GAP Warehouse in Rugby...

 Read Full Article
British Land Plans New Logistics Hub in Enfield

British Land has received resolution to grant planning permission for a 455,000 sq ft multi-level logistics hub near Junction 25 of the M25. Intended to cater for the...

 Read Full Article
Prologis Finalises $3.1bn Acquisition of Blackstone Logistics Portfolio

A definitive agreement for Prologis to acquire almost 14 million square feet of industrial property from Blackstone has been confirmed. Blackstone recapitalised...

 Read Full Article
London Thames Gateway Warehouse Facility Opens for DHL and Mars

Mars and DHL’s “Project Gateway” investment into UK operations concludes with the opening of the London Thames Gateway facility. The building is 42...

 Read Full Article
Apleona Wins FM Contracts for Mileway Portfolios in Germany

Apleona has won several lots in two separate tenders conducted by Mileway, the European logistics arm of Blackstone. The three-year contract includes property...

 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