Creating SAP based automated orders may help, ensuring 100% spares availability, when spares are consumed, automated orders should be generated when spares availability comes down to 50%. All we need to do is just input all BOM of the equipment, rest SAP system will do.

One aspect I have used is to make sure that you use historic usage and forecasting to ensure that you have a suitable Minimum on Hand stock holding. You do not want to sit on stock (unless its a strategic line) for long periods of time. Ensure your lead times for parts is accurate in your system, when given a range and err on the side of caution, if 7-10 days is offered insert 10 days, unless the data set suggests the supplier can reliably deliver in 7 days.

From Maintenance point of view Spare parts should be categorized as stocked item or non stocked items, however from Material management point of it is categorized as the Vital, Essential & Desirable.. When a maintenance guy taking decision on inventory he keeps in mind always about the outages of equipment due to component breakdown so he should consider the prediction, and Age of the parts, lead time Vs prediction. The inventory management strategy always differs from the operating context, if the plant is running on higher or lower capacity than the more failure are likely to happen, so the spares parts requirement is high as compared to the plant running on the designed capacity.

Managing spare parts inventory effectively requires a balance between preventing shortages and avoiding excess stock. Here are some key strategies: 1. Demand Forecasting – Analyze historical usage data, seasonal trends, and equipment maintenance schedules to predict demand accurately. 2. ABC Analysis – Categorize spare parts based on importance and consumption rates: A-items: High value, low frequency (tight control) B-items: Moderate value and frequency (moderate control) C-items: Low value, high frequency (looser control)

To avoid shortages or excess stock of spare parts, focus on accurate demand forecasting and set clear reorder points with safety stock for critical items. Regularly review inventory levels, prioritize parts by importance (e.g., ABC analysis), and work closely with suppliers for flexible restocking. A simple, consistent process ensures efficiency and avoids unnecessary costs.