POSITIVE BENEFITS OF HAVING PUMP SPARES AVAILABLE ON RAPID LEAD TIMES
Just in time - lean supply chain thinking - is critical to the success of virtually all industrial processes. 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…..
Reduced Inventory Cost
When companies acquire too much inventory, the items can sit in their warehouse or storage location collecting dust. The inherent value that is in these parts cannot be pulled out until they have been used in the production process. The longer parts sit, the more likely it is that they become obsolete due to changing processes, and often, they can simply be forgotten.
Faster Turning Inventory
Faster turning inventory overcomes most of the above and delivers further benefits. It is easier to control, to count, to store. It gives you the flexibility to respond quickly to changing market trends and new entrants to your supply chain.
Less Capital Invested
This one is crucial in times of financial stress. It makes the company more profitable, it gives the opportunity to create a greater cash flow and even pay down debts or stay solvent. If a new business venture appears then it can be acted upon when cash is available to take advantage of it.
If you receive your spares quickly and efficiently, you can stop worrying about it and invest your time in more productive and profitable activities.
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 more costly. That let down customer may never use your products again – they don’t want the costs outlined above. 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. Your competitors will likely be taking advantage, you need to as well.