Building and managing a well-run point-of-use parts center comes with its fair share of challenges, but the results are worth it.
Efficient distribution of new and replacement parts at their point of use is crucial for any industry with operations relying on complicated equipment or machinery. Think aviation, transit, HVAC, or automotive, for example.
Direct-to-consumer and direct-selling retail brands also benefit when popular products are held close to where they are sold.
In general, ready access to replacement parts and fast-moving inventory reduces costly downtime. And less waiting and more reliable fulfillment improves customer satisfaction. These outcomes can lead to more sales, higher customer retention, and increased profitability.
However, being good at point-of-use fulfillment can be a lot harder than it looks. Here are our Top 10 reasons why you might need some assistance to get your inventory closer to where it's needed:
1. Accurate inventory management: Storing and tracking a vast and diverse parts inventory can be daunting. You'll need a robust inventory management system with real-time tracking and automated reordering.
2. Supply chain complexity: Managing a global supply chain requires in-depth knowledge of local language and cultural norms, currency fluctuations, international laws and regulations, diverse technologies, and potential risks due to political instability, natural disasters, and even weather. You'll need streamlined, interconnected operations with effective communications and collaborative suppliers.
3. Reliable parts identification: Component variations and changing part numbers can make it hard to know which parts are needed and which parts are actually being delivered. Get a better handle on what's what with automated part recognition and labeling systems using technologies like RFID and barcodes.
4. Storage and space constraints: This is a common problem for many maintenance and repair operations. Physical limitations of work locations combined with common-sense safety precautions make it impossible to keep all the inventory you need on-site where the actual work gets done. Smart shelving and optimized space utilization will keep fast-moving inventory close at hand while helping you keep loose parts and boxes out of the way.
5. Just-in-time logistics: Meeting operational demands through just-in-time fulfillment requires precise coordination and reliable data. You'll need integrated systems to provide real-time visibility and maintain close relationships with suppliers to plan for demand fluctuations.
Parts shortages continued to hamper repair and maintenance operations in 2022. Sixty-six percent of service shops experienced increased delays and 62 percent of service shops had to frequently purchase parts from outside their regular suppliers – up from 45 percent in 2021." - American Transport Research Institute
6. Regulatory compliance: Adhering to industry-specific rules, such as FAA regulations for aviation, is non-negotiable. Implement robust compliance systems to maintain records and always conduct regular audits.
7. Security and access control: Stringent security measures are necessary to protect valuable inventory. Make sure you have state-of-the-art access control and surveillance systems in place and stay vigilant with robust authentication methods.
8. Geographic reach: Making timely deliveries to multiple locations is inherently complicated. Establish multiple distribution centers that are optimized for local demand in various regions to make sure inventory is always within easy reach of end users.
9. Consistently excellent customer experience: All that your customers want from you is the exact part they need at exactly the moment they need it. To make everything simple, maintain responsive communication channels, make returns and replacements fast and easy, and always offer proactive assistance.
10. Scalability and flexibility: It's vital for your supply chain to adapt quickly to changing market conditions. Build flexible, scalable infrastructure that can easily address market shifts over the long term.
Advantages of a Well-Run Point-of-Use Parts Center
A state-of-the-art point-of-use fulfillment center keeps track of critical inventory, enables fast local distribution to multiple locations, and adapts to changing market conditions. The challenges are real, but the advantages, including less downtime, greater cost efficiency, better compliance, and more satisfied employees and customers, are worth the effort.
Contact us today to learn more about Cura Group's comprehensive logistics solutions for structural and creative package design, display building, warehousing, and inventory management and distribution – all under one roof.
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