Parts ordering is a challenge at all equipment management organizations. Getting the right parts at the right time from the right supplier to meet the needs of the entire organization. How do you arrange that as efficiently as possible?
Challenges in parts order management
It seems simple, ordering the right parts at the right time. But in practice, it is much more complicated. Just a few of the challenges you encounter in parts order management:
- How do you determine reorder points? Which parts do you always want to have in stock? What minimum stock levels do you use?
- If you have multiple branches/warehouses; will you order centrally or decentrally? How important is delivery time? What are the costs of orders and transportation? Who is authorized to order?
- How do you track changes to prices and item files? How do you record replacement items? Can you import vendor catalogs into your system?
- Is it possible to simplify the ordering process? E.g. by interfacing with suppliers' systems.
"For tight organization of the ordering process, parts order management should be part of your ERP system or Dealer Management System (DMS)."
Parts order management as part of ERP or DMS
Parts needs arise at equipment dealers in multiple areas of the business. Consider:
- Sales: direct orders from customers
- Rental: in addition to the object, also rent out parts with it
- Service: replacement of defective and worn parts
- Warehouse: replenishing stock levels
Parts order management is thus strongly intertwined with all other departments of your equipment organization. For a tight organization of the ordering process, parts order management must therefore be part of your ERP system or Dealer Management System (DMS). A stand-alone application is doomed to failure. By feeding parts management with current and correct information from across the organization, you can make the right decisions.
Benefits you can gain
Do you have your parts order management well organized and automated? Then the benefits are enormous. Costs fall, processes become more efficient, profits increase and customers are more satisfied. You achieve this by, among other things:
- Improved on-time delivery
- Lower inventory levels
- Fewer missing or incorrect parts
- Better inventory visibility
- Less time spent placing orders
- Lower storage and transportation costs
Therefore, don't skimp on parts ordering automation, but make sure it is excellent. A specialized partner can help you optimize your ordering processes, interfacing with suppliers and making choices when setting up the system.
