In today’s world of interconnected economies. maintenance teams need robust inventory management that delivers reliable stock levels through accurate demand forecasting and effective cost controls. By ensuring that the right parts are available at the right times, digital inventory solutions help facility and maintenance professionals maintain operational efficiency.
What are the challenges of manual inventory tracking for facility and maintenance management?
Manually tracking inventory for maintenance and facility teams takes extra time and effort while still delivering disappointing results. But that doesn’t mean every organization will experience the same set of problems. It all depends on the specific circumstances, including everything from industry to existing inventory processes and policies, explains Sammy Samperi, an enterprise account executive at Eptura.
The common problems he hears about from companies include:
- Overall inefficiency: Manually tracking inventory is time consuming and labor intensive. It takes a lot of time to count, record, and update inventory levels, which could be better spent on other tasks.
- Inconsistent data: Without a centralized system, different teams or locations might maintain their own records, leading to inconsistencies and discrepancies, making it difficult to get an accurate overall picture of inventory levels.
- Difficulty auditing: Tracing the history of inventory movements across multiple manual logs and spreadsheets takes a lot of time and effort, making it hard to ensure compliance with regulatory requirements.
- Reduced accountability: Manual systems make it harder to track who has accessed inventory and when, leading to issues with theft, misuse, or misplacement of items.
- Increased risk of stockouts: Without real-time visibility, it’s easy to miss when inventory levels are running low, leading to stockouts. What could have been a quick fix instead becomes long, expensive unscheduled downtime.
Managing inventory is a balancing act, so it’s important not to overcompensate when trying to avoid stockouts, explains Samperi.
“You know you need to bring your stock up, but you don’t want to overstock. Because then you have money tied up in inventory that just sits there depreciating, and you’re not getting any value from it.”
Maintenance inventory challenges specific to larger, enterprise-level companies
There are also inventory issues more likely at larger organizations, especially those spread out across multiple locations. For example, manual inventory tracking means missed bigger missed opportunities. Without advanced analytics and reporting, it’s difficult to identify trends, optimize inventory levels, and make data-driven decisions. So, a large manufacturing company with multiple plants might struggle to determine the longevity and reliability of specific machine parts even though they have data sets related to parts and materials. The problem is that none of the sets are connected, and the lack of visibility means missed insights.
Another issue is that manual methods don’t scale. As a company expands, the complexity of manual inventory tracking increases exponentially, and it becomes increasingly difficult to manage larger and more diverse inventories. For example, there might be a large manufacturing company that is expanding its production facilities to new locations. Each plant introduces a set of maintenance parts, such as bearings, belts, and lubricants. Because the company can’t centralize and standardize inventory management processes, not only can they not manage inventory at any one location, but they also can’t share inventory across locations or save money through bulk purchases.
Issues with inventory and the global supply chain
When internal processes for inventory tracking are unreliable, maintenance departments often encounter additional issues when trying to respond to fluctuations and disruptions in local and global supply chains. Because they lack reliable systems for internal tracking, it’s impossible for them to efficiently, effectively coordinate with suppliers.
When trying to control inventory using outdated methods, the common challenges include:
- Demand forecasting inaccuracy: Predicting the exact demand for parts and supplies can be difficult, leading to overstocking or stockouts. Overstocking ties up capital and increases storage costs, while stockouts can lead to downtime and increased emergency orders.
- Lead time variability: The time it takes to receive an order can vary significantly, making it difficult to plan inventory levels. Long or unpredictable lead times can result in stockouts and increased safety stock, which ties up capital.
- Seasonal fluctuations: Demand for certain parts and supplies can vary significantly by season, making it difficult to maintain optimal inventory levels, leading to overstocking during low-demand periods and stockouts during high-demand periods.
Although there are many ways inventory control for a maintenance team can go wrong, there’s one reliable answer: A modern digital inventory management solution.
What are the benefits of digital tracking for maintenance parts and supplies?
Maintenance departments that leverage modern inventory management have the right parts, at the right prices, and just in time.
Reduced downtime
Knowing exactly what parts a maintenance team has on hand is crucial for minimizing equipment downtime. When maintenance techs can quickly locate and access the necessary parts, they can perform repairs and maintenance tasks more efficiently. Immediate access to parts ensures that the team can bring equipment back online faster, reducing the time that machines or systems are out of service. If a critical piece of machinery breaks down, having the exact part on hand can mean the difference between a quick repair and a prolonged shutdown that pushes back production runes, risking reputational damage for the organization.
Accurate inventory data also supports preventive maintenance by ensuring that all required parts are available when scheduled maintenance is due, further reducing the likelihood of unexpected downtime.
Cost savings
By knowing exactly what parts are on hand, maintenance teams can avoid overstocking, which ties up capital and increases storage costs. Overstocking can also lead to parts becoming obsolete or damaged, further wasting resources. On the other hand, accurate inventory data helps in reducing the need for emergency orders and expedited shipping, which are often more expensive. Optimized inventory management ensures that the right balance is struck between having enough parts to meet demand and avoiding unnecessary expenses.
Improved efficiency
Accurate inventory data streamlines workflows and improves overall efficiency for maintenance teams. When teams know exactly what parts are available, they can plan and execute tasks more effectively. They can close out work orders faster and allocate resources more efficiently.
For example, if a maintenance task requires a specific part, the team can start the job immediately without waiting for the part to be located or ordered. Efficiency not only speeds up the maintenance process but also allows teams to handle more tasks, enhancing productivity. And better resource allocation ensures that the right parts are available at the right time, reducing the likelihood of delays and improving the overall maintenance process.
Improved compliance and safety
In many industries, accurate inventory records are essential for ensuring compliance with regulatory standards and maintaining safety. Knowing exactly what parts are available helps teams verify that all parts and materials meet the necessary regulatory requirements, reducing the risk of non-compliance and associated penalties.
For example, in industries like healthcare or aviation, where safety is paramount, having the right parts on hand ensures that maintenance tasks can be performed to the highest standards. And accurate inventory data supports safety by ensuring that maintenance tasks can be completed without delays, reducing the risk of accidents and injuries. So, if a safety-critical part is known to be in stock, the maintenance team can perform the necessary repairs immediately, ensuring that the equipment remains safe to operate.
Better decision-making
Having a clear and accurate inventory provides a solid foundation for making informed decisions. Maintenance managers can use this data to identify trends in part usage, optimize inventory levels, and make strategic purchasing decisions. For example, if data shows a particular part is frequently needed, the team can ensure they always have sufficient stock.
And teams can leverage historical data and real-time performance metrics to predict when parts will need to be replaced. Predictive maintenance capability allows for proactive planning, reducing the likelihood of unexpected failures and associated costs. For instance, if the system predicts that a piece of equipment is likely to fail in the next month, the team can order the required parts in advance, ensuring they are on hand when needed.
Better supplier relationships and supply chain management
Accurate inventory data can also lead to better relationships with suppliers. By placing orders more accurately and consistently, maintenance teams can negotiate better terms and build stronger supplier relationships. For example, if a supplier knows that a facility consistently orders the right number of parts, they might offer better pricing or more favorable terms. Another example is when a large company has visibility on its maintenance inventory across multiple locations, empowering it to make bulk purchases that drive down costs.
And accurate inventory data helps to better coordinate with suppliers, potentially reducing lead times and ensuring timely delivery. If a maintenance team knows that a particular part is running low, they can place an order well in advance, ensuring that the part arrives before it is needed. A proactive approach not only improves the efficiency of the maintenance process but also strengthens the relationship with suppliers.
How can organizations leverage a modern maintenance management platform to inventory control?
A modern facility and maintenance management solution can provide the insights needed to better control inventory by leveraging advanced analytics and real-time data integration. These solutions can analyze historical data on parts and materials usage, maintenance schedules, and even predictive maintenance data to forecast demand more accurately.
For example, a modern digital solution can integrate data from various sources, such as maintenance logs, work orders, and equipment performance metrics. The integration allows the system to identify patterns and trends in part usage, helping to predict when specific parts will be needed. By connecting this data to maintenance schedules, the system can automatically adjust inventory levels to ensure that parts are available when scheduled maintenance is due. The team can not only reduce the risk of stockouts but also minimize the need for excessive safety stock, optimizing inventory levels, and reducing carrying costs.
And predictive maintenance capabilities within these solutions can provide even more granular insights. By using machine learning algorithms, the maintenance department can use the system to predict when equipment is likely to fail based on real-time performance data. An early warning system allows maintenance teams to proactively order and stock the necessary parts and materials well in advance, preventing unexpected downtime and reducing the need for emergency orders. For example, if the system predicts that a particular piece of equipment is likely to fail in the next month, it can automatically trigger an order for the required parts, ensuring they are on hand when needed.
How can organizations successfully implement a digital inventory solution?
According to Samperi, it all starts with a successful implementation supported by clean data. So, he encourages companies to “really spend time on this and get it right.” In some cases, companies may want to use data they already have in their current inventory system. Instead, he encourages companies to see the implementation process as an opportunity to start with numbers they know they can trust, even if it takes more time.
“And once they do that, once they spend that time, they’re going to automatically start seeing that data roll in and start getting some of their returns back very quickly.”
Discover Eptura inventory management.
By Jonathan Davis
Jonathan writes about asset management, maintenance software, and SaaS solutions in his role as a digital content creator at Eptura. He covers trends across industries, including fleet, manufacturing, healthcare, and hospitality, with a focus on delivering thought leadership with actionable insights. Earlier in his career, he wrote textbooks, edited NPC dialogue for video games, and taught English as a foreign language. He holds a master's degree in journalism.
