Why is Inventory Tracking So Important?
In order to properly maintain equipment and facilities, maintenance departments must have parts available when needed. If there isn’t an accurate way to tracking inventory, this can result in many issues including parts not being available for maintenance repairs when needed, equipment downtime, costly special shipping, and lost or stolen parts. Also, inventory has an impact on the profit margins of an organization due to high carrying costs. A CMMS program can meet and remove the majority of challenges that come with inventory tracking.
What are Challenges with Manual Inventory Tracking?
Difficult to locate and track parts – With a manual system, parts may be in various locations and are hard to find when needed. This leads to re-ordering, over stocking and stocking of obsolete parts, which can be hard to manage. The end result is increased inventory carrying costs for the organization as well equipment downtime and lost productivity if parts aren’t available when needed.
Difficult to track quantities and re-order points – All quantities such as on-hand, on-order, receipts, committed and issues result in many transactions that must be tracked manually, frequently leading to discrepancies. Re-order points and methods must also be tracked manually.
Difficult to track multiple vendors and suppliers – With a manual system, it is difficult to track the various vendors who provide the same basic part, including the suppliers who offer them. Without the ability to track the lowest price provider and lead time, this results in higher purchase costs and longer lead times, especially if parts have to be ordered with short lead times and high shipping costs.
Difficult to track future forecasted needs – With a manual system, it is difficult to track future part needs by time period, factoring in order lead times, for future planned maintenance jobs.
Difficult to perform physical counts and reconciliations – A manual system can make this job labor intensive, particularly when performing partial counts for high value or frequently used parts only.
Reporting and analysis is labor intensive or unavailable – A history of inventory purchases and usage by any time period, by vendor, including the equipment a part was installed on, is very difficult to compile manually.
Increased costs – All the above factors result in increased costs for inventory tracking and management using a manual system.
How a CMMS Solves Inventory Tracking Problems
Easy to locate and track parts – With a CMMS system, parts and all their information can easily be located in any area of the facility or plants if multiple locations exist across cities and states. Parts can be found by any criteria including supplier, vendor, manufacturer part number, serial number, part type (all filters or bearing), etc. All quantities are automatically tracked including links to the work order and purchasing modules in the CMMS system. This makes organization and tracking of parts an automated process. The end result is highly organized inventory tracking, reduced inventory carrying costs as parts are ordered as needed, and reduced equipment downtime and lost productivity as parts are available when needed.
Easy to track quantities and re-order points – All quantities such as on-hand, on-order, receipts, committed and issues are automatically tracked, greatly reducing discrepancies. Automatic reorder points can be established and when inventory falls below safety stock or designated reordering methods, parts will be placed on order with the preferred vendor.
Easy to track multiple vendors and suppliers – With a CMMS system, it is easy to track the various vendors who provide the same basic part, including the suppliers who offer them. This includes the ability to track the lowest price provider and lead time, which results in lower purchase costs and shorter lead times.
Easy to track future forecasted needs – It is easy to track future part needs by time period, factoring in order lead times by vendor. This leads to proper planning and management of work orders with the necessary parts available when needed.
Easy to perform physical counts and reconciliations – Physical counts can easily be managed with a CMMS system including performing partial counts for high value or frequently used parts. When counted quantities are entered, they are automatically reconciled with on-hand quantities and any discrepancies corrected.
Reporting and analysis easy – An extensive history of inventory is available at your fingertips for any criteria using reports, graphs or dashboards. This includes for any time period, for any type of transaction (order, receipt, issue, on-hand adjustment) by part, part description, part class, vendor, etc.
Reduced costs – All the above factors result in greatly reduced costs for inventory tracking and management using a CMMS system.
What Makes DPSI The Right Choice for Inventory Management?
DPSI’s systems provide the features and functions necessary to effectively manage your parts inventory. We have been a global leader in EAM and CMMS solutions since 1986. Our solutions help organizations manage, monitor and control maintenance including equipment, resources, parts and regulatory compliance. Interested to see how DPSI’s CMMS software can help organize and manage your inventory and make your company more productive? Call us now or get started with a free trial today!