How a Managed Inventory System can help you save time and money

As a parts buyer, you have a tough job.

The Service Manager wants you to find the highest quality parts at the most economical price point for next day delivery, regardless of how late they gave you the order. You’ve got to coordinate shipping between various vendors and the customers site or a hold location. And then there’s the headache of getting the defective part back from the field service engineer. Even if you do get it back, you still must deal with shipping the part out for repair and following up with the repair center to have it returned to you.

What if there was a way to make this process easier, thereby taking some of the stress off you? This is where an established Managed Inventory System can help. Let’s look at how the system works.

MANAGED INVENTORY SYSTEM OVERVIEW

At Midrange Repair & Parts we have developed a Managed Inventory System that can ease the daily burden of parts management.

The system starts with a seed stock of inventory to maintain the products your company has under maintenance. This seed stock is determined by the type of machines being maintained, the quantity of machines, and the common failure items for these machines. When we build a program for a customer, we’ll ask for this information and provide the customer with recommended stock levels. The customer will then transfer the appropriate quantity of inventory to our warehouse location for storage. We receive the items into a virtual warehouse for that specific customer, recording the part number, serial number and condition of each item. The condition of the item will indicate a status of defective, repaired, or unrepairable. As a customer you’ll be able to access our customer portal to check the status of all your inventory.

When you need one of your parts, you’ll send an order to your MRP Account Executive who will start the order process. They’ll create a Sales Order to ship the part to your customer’s site or to a hold location for your Field Service Engineer to pick up. They’ll also include an Authorized Return Shipment (ARS) label with the package and instructions for your engineer to return the defective part to our repair facility. The first time your seed stock ships out you’ll only be charged for shipping. If the part we ship was originally defective and we repaired it, you’ll be invoiced for the repair work as well as the shipping charges.

We’ll monitor the ARS labels and watch for your Field Service Engineer to return the defective core part. When it arrives, we’ll receive it back into your inventory as defective for future repair.

Once a week we run a usage report to monitor which parts were used in the preceding 30-day period. The report shows us what was used, what you have in repaired inventory, what you have in defective inventory and what items should be repaired. This ensures we always have 30-days part usage repaired and ready to ship. By the way, we can ship your parts as late as 6:00 pm Central Time Monday through Friday.

HOW THIS BENEFITS YOU

So, how does this make your life easier? Let’s look at how most companies handle their inventory problems.

Purchase Only – Some companies purchase the parts they need either outright or on exchange. If you purchase the part on exchange it’s on you to make sure your Field Service Engineer sends the board back to you. This means either you’re tasked with managing the core exchanges for your various vendors or you’ll need a co-worker to help you manage them. Neither way is efficient or cost-effective.

Additionally, if you purchased the board outright, you’ll still want to get the defective board back from your engineer. If it’s a popular or valuable board you may decide to send them out to be repaired, assuming you don’t have your own depot repair center.

Having your stock repaired as needed – Depending on the size of your company and the volume of your maintenance contracts you may have decided to manage your own parts inventory. Now you’re having to manage two inventories, one for good stock and one for defective stock. You’ll need to monitor your parts usage, project your future usage, determine what defective parts to send for repair and in what quantities and follow up with your vendors as to the status of those repairs. You’ll also need to track and receive the repaired boards as they come back to you and receive them into good usable inventory. This just adds more work to your already busy schedule as well as a variety of added expenses.

The first improvement you’ll see when using our service is in cost savings. Having your boards repaired can save you up to 75% over the cost of purchasing boards. You only pay for parts that ship which means you don’t have to outlay money for inventory until it’s needed while reducing exposure to inventory write-downs.

The second improvement you’ll see with a Managed Inventory System involves time and efficiency. When you entrust us to manage your inventory and your repairs, you’ll find you have more time to take care of tracking down those hard to find purchases.

We’ll keep track of all your parts, both defective and repaired. Your parts can be shipped at a moments notice until 6:00 pm CST Monday through Friday. We monitor your usage and repair your defective inventory accordingly. You’ll see a savings in both time and money within a very short time period.

Call your MRP Account Executive today and see what we can do for you!

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