5 Parts Inventory Management Best Practices

Your maintenance strategy will only be effective if your team has the necessary tools and parts to complete maintenance and repairs. The importance of part inventory management cannot be overstated. This process involves keeping up-to-date inventory levels, knowing where spare parts are located, and managing resources to stay efficient and limit costs. 

In this article, we’ll explore parts inventory management best practices and explain why using LLumin’s CMMS+ (Computerized Maintenance Management System) software can be pivotal in helping your organization streamline and improve its inventory management processes.

What Is Parts Inventory Management?

Parts inventory management is a foundational process of the most effective maintenance management programs. The term refers to ordering, organizing, storing, and then using spare parts required to maintain optimal operations. Management of spare parts is necessary to ensure that when proactive or corrective maintenance needs to be performed, the parts to complete these tasks are on hand. However, a balanced inventory is necessary to ensure necessary parts are available without under or overstocking, which can increase maintenance costs. 

Why is Parts Inventory Management Important?

Parts inventory management is important because, without it, necessary parts and materials would be unavailable, causing maintenance to be delayed. Delayed maintenance would result in increased downtime and production halts. Further, inventory that is not managed can also lead to higher costs due to excessive stock levels.

Effective parts inventory management is critical because it supports an organization’s overall maintenance strategy, reduces costs, and ensures equipment and machinery remain operational.

Parts Inventory Management Best Practices

We’ve honed in on the most essential best practices that can help ensure that you always have the right parts available while limiting common challenges associated with excessive stock or stock-outs. You can integrate these strategies into your current process structure to improve efficiency and reduce maintenance costs.

Regular Inventory Audits

While you can conduct regular inventory audits manually, such as recording items on spreadsheets, this method is time-consuming and prone to human error.

Implementing a CMMS with inventory management capabilities improves the process by providing accurate real-time tracking of parts and reducing discrepancies. Regular audits will help to ensure inventory accuracy, identify missing or misplaced items, and maintain optimal stock levels.

Categorization

Categorization is a normal and necessary process for increasing inventory accuracy and management. Parts should be organized according to equipment criticality, consumption value, and demand. For example, frequently used, high-demand parts can be classified and separated differently than less used, low-demand parts.

This process will help you determine and prioritize the parts that should be in stock in larger quantities, ensuring that they are always available when needed to avoid downtime. Furthermore, this inventory management method will help you improve budgeting and reduce overstocking of non-business-critical parts.

Set Reorder Levels

Setting reorder levels and points is an effective way to avoid overstock and stockouts. Set minimum and maximum stock levels and automate reordering to ensure you always have the right parts and the right time. For example, a minimum inventory level will prompt a CMMS system to reorder, whereas a maximum level will prevent you from placing unnecessary orders. 

This process can be simplified and streamlined by using a CMMS, such as LLumin, which will send you automated alerts to keep you informed of when reordering is necessary and how much of any one part or component is needed.

Leverage Technology

As previously stated, using CMMS software with inventory management tools will provide several advantages. Inventory management software will enable you to monitor real-time inventory levels and forecast future requirements. This will allow you to reduce human error, optimize inventory management, and maintain a high-level view of your inventory usage and future requirements. It will also make inventory management easier across multiple sites and facilities. 

Staff Training

No matter how advanced your systems are, you will need well-trained staff to use and support it. This will require training to ensure that your employees understand how to use your inventory management system, implement inventory management best practices, and reduce errors. 

Suggested training should include software use, auditing protocols, and your categorization standards. Keep in mind that training is not a one-stop process. Training should be ongoing, and your employees should be informed of new features, policy changes, and updates to ensure that your inventory management processes are effective.

The Benefits of LLumin’s CMMS+

LLumin’s CMMS+ can be an excellent tool to enhance your existing parts inventory management processes. Its user-friendly interface, predictive capabilities, and real-time data collection can provide a significant advantage in managing inventory levels effectively. 

LLumin’s CMMS+ is a next-generation mobile CMMS platform powered by AI technology that identifies and comprehensively monitors tools, chemicals, components, and materials and reduces financial, legal, and regulatory risks. LLumin’s mobile and web-enabled capabilities enable customers to be prepared, accurate, and just-in-time supplied. Plus, our solution contributes to an optimized supply chain and approval process.

LLumin’s CMMS+ Parts Inventory Management Features

Optimize Parts Inventory Management With LLumin

If you need to take a more comprehensive approach to inventory management, one that results in increased visibility, accuracy, cost savings, and better maintenance management, an advanced CMMS solution could be the right solution. 

LLumin’s advanced predictive capabilities can help your organization take a more proactive approach to maintenance planning while ensuring parts are available on time. Join the growing number of satisfied customers using LLumin to achieve new levels of operational efficiency today!