Manage a “spare parts” warehouse with an ERP? … “watafak”!!!

Without fear of sounding “simplistic,” we can agree that an ERP system is designed to efficiently manage everything around us that is subject to the “almighty dollar.” This is undoubtedly an important and crucial matter. At least, originally, that was what it was designed for.

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ERP and the Realm of Money

ERP systems have “replaced” accounting and billing applications, among others, relegating them to a niche market geared toward smaller business units that don’t require “as much” for their financial management.

It soon became clear that the company was open to “over-investment” in this area.

As a result, all kinds of ERP systems proliferated, some of which turned out to be a real “bottomless pit.”

As a result, the strongest players created large corporations, and their current acquisitions are no longer just for management purposes, but also to “show off” and thereby sell more than the competition.

Because getting it up and running isn’t exactly cheap, and its flexibility isn’t within everyone’s budget.

“Expensive” is relative… if you measure it by the profit

Although “expensive” is a relative term, since it should be inversely proportional to the profit earned. And that profit, of course, should be measurable.

The “controversial” thing about ERP systems is that they try to “sell” us on the idea that “integrated” is better than “integratable.” Not so fast, Pedrín!!

Integrated doesn’t always mean better

And that’s why they offer us “everything” and more there.

It’s very “clunky” and impractical.

We aren’t investing too much in it because this “new venture” isn’t really a “business”—beyond being able to say, “Yes, we have that, too!!”

More of a sales pitch than a proven fact.

The thing is, you can’t be good at “everything”!!!

Specialization matters, too

A “general” approach cobbled together haphazardly or plucked out of thin air is no better than “integrable” specialization.

Have they tried to convince you, too, of how ideal it is to manage a warehouse for maintenance “spare parts” using the same system used for raw materials and production supplies?

If you can, you can. As the saying goes: “When there’s no bread, cakes will do.”

What the ERP *SHOULD* Manage

Inventory receipts, overall inventory control, the unit cost applicable at any given time, procurement management, and “spare parts” receipts MUST be managed exclusively by an ERP system, along with other materials, using a common strategy. Amen!!

Because that’s where ERP makes sense.

Because that’s where we discuss: purchasing, tickets, costs, accounting, overall inventory, and a common materials strategy.

What the CMMS MUST Manage

That said, once we have the “replacement” on hand, managing multiple warehouse locations MUST be the responsibility of the CMMS.

And it should be managed by maintenance staff, who are the ones who use them exclusively and, therefore, the ones who “put up with” them.

A Maintenance department that, in addition to its technicians, should have management “personnel,” just like other departments.

Spare parts have a life of their own

Transactions such as relocations, reservations, deliveries, returns, and the use of “spare parts” linked to actions recorded in work orders are specific cases involving “spare parts” that do not occur in the management of other types of materials. Nor do their use or purpose.

Multilevel classification: in a league of its own

And what about the “multi-level” classification!!

Because not everything can be treated as a simple inventory item.

Not everything is analyzed the same way.

Not everything is consumed the same way.

Not everything behaves the same way, nor does it have the same criticality or the same impact on maintenance.

Measure Accurately to Make Better Decisions

You wouldn’t actually think of compiling statistics on a specific “blade” model, would you??

The appeal isn’t just in knowing that a blade has been used up.

The key is being able to analyze: what type of blade, on which machine, in which process, how often, at what associated cost, and under what maintenance procedures or interventions.

Because that’s where spare parts management stops being just a “warehouse” and starts providing useful information for better maintenance.

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