Ordering parts is a challenge for all equipment management organizations. The right parts at the right time from the right supplier, so you can meet the needs of the entire organization. How do you organize that as efficiently as possible?
Challenges in parts order management
It sounds easy, order the parts you need at the right moment. However, in practice it is much more complicated. Just a few of the challenges you come across in parts order management:
- How do you determine the reorder points? Which parts do you always need in stock? What minimum inventory levels will you be using?
- If you have multiple locations or warehouses; will you order centralized or decentralized? How important is delivery time? What are the costs of your orders and transport? Who has permission to order?
- How do you keep track of changes in prices and parts files? How do you keep track of substitute parts? Can you import catalog files from the supplier into your system?
- Is it possible to simplify the ordering process? E.g. by interfacing with supplier systems.
"For a proper organization of the ordering process, parts order management must be part of your ERP system or Dealer Management System (DMS)."
Parts order management as part of ERP or DMS
At equipment dealers, the need for parts arises at several places in the company. Think of:
- Sales: direct orders from customers
- Rental: in addition to the object also parts rental
- Service: replacement of defective parts
- Warehouse: replenishing the inventory levels
Parts order management is therefore strongly intertwined with all other departments of your equipment organization. For a proper organization of the ordering process, parts order management must therefore be part of your ERP system or Dealer Management System (DMS). A standalone application is doomed to fail. By feeding parts management with up-to-date and accurate information from the entire organization, you can take the right decisions.
Benefits you can achieve
Is your parts order management properly organized and automated? The benefits you gain are enormous. Lower costs, more efficient processes, higher profit and more satisfied customers. This is the result of (for example):
- Improved on-time delivery
- Reduced inventory levels
- Less missing parts or wrong parts
- Better inventory visibility
- Less time spent on placing orders
- Lower costs for storage and transport
So do not try to save money on automating on your parts ordering, but make sure this is arranged outstandingly. A specialized partner can help you to optimize your ordering processes, with interfacing with suppliers and with making choices in the setup of the system.