How Rapid Lead Times on Pump Spares Boosts ROI

Just in time (JIT) – part of lean supply chain thinking – is critical to the success of virtually all industrial businesses. In the competitive commercial world we operate in, the savings it brings are vital – or to put it another way, the costs of an ineffective supply chain can bring considerable damage. Our Managing Director, Andrew Smith, looks at some of the key considerations…..

Lowering Inventory Holding Costs

• Space always has a cost
• Some parts risk becoming obsolete
• Parts can degrade, get damaged, or simply be forgotten

When companies acquire too much inventory, the items can sit in their warehouse or storage location, collecting dust – and maybe rust. The cash value in these parts cannot be utilised until they are fitted into productive machinery. The longer parts sit, the more likely they are to become obsolete as processes change, and often they can simply be forgotten. Storage space is never free – you’re either paying for it, or missing out on rent!

Faster Inventory Turn-rate

• Easier to control, count, and store
• Greater flexibility to respond to changing market trends
• Ability to seamlessly integrate new supply chain partners

Lower, optimised inventory overcomes the cost and complexity of spare part stock holding and delivers many operational, commercial, and sustainability benefits. It is easier to control, to count, and to store properly. It gives you the flexibility to respond quickly to changing market trends and take advantage of new innovations. Parts that never get used are wasted resources.

Minimising Tied-Up Capital

• Cash is King – or Queen!
• Money tied up reduces ROI (Return-on-investment)

This one is crucial in times of financial stress. Savvy investment means putting available funds into the most profitable activities – those that create added value. For most manufacturers, this centres around your core product offering; the commodity you sell rather than the parts you consume. Turning out more with less makes the company more profitable, while reducing unnecessary inventory improves cash flow. Cash liquidity enables you to adapt quickly, opening up options to pay down high-interest debts, invest in new business ventures, or even stay solvent through troubled times.

Time Saved

• Free your time (& mental energy) for better things
• Strong supply partners reduce risk of business disruption
• Invest time where it makes the most return

If you have strong supply partners who you can rely on to receive your spares quickly and efficiently, you can stop worrying about process disruption and invest your time in more productive and profitable activities, such as product development, staff training, marketing, and sales.

Customer Satisfaction

If your process is down, it won’t be long before you let down your customers. This causes immediate, obvious stress and costs. However, the long-term damage can be considerably higher still if your customers are forced elsewhere. Keep them happy and they will return again and again.

So in Conclusion…

Don’t put up with poor lead times on your pump spares (or replacement pumps for that matter). You don’t need to, there are always options. And the benefits above aren’t exhaustive, there are many more. With Atlantic Pumps, you have a partner onside who understands your application, thinks for your long-term success, holds quality spare parts for you, and responds to your needs at speed.

Why not run a pump system review today, and discover where you can make inventory optimisations, time-and-cost savings, and reliability upgrades? Our pump experts can help you fine-tune your parts and maintenance strategy, to give your company the competative edge.