Why Parts Order Management is so important

02/09/2016 - Eelco Andringa

Does your organization order large quantities of parts? Then an order management system is an absolute must-have. Only then you can have a good insight into the flow of parts and keep costs manageable. Or, if we look at it more positively; you can earn a lot of money by properly automating your parts ordering!

Challenges in parts order management

It sounds easy, order the parts you need at the right moment. However, in practice it is much more complicated. Just a few of the challenges you come across in parts order management:

  • How do you determine the reorder points? Which parts do you always need in stock? What minimum inventory levels will you be using?
  • If you have multiple locations or warehouses; will you order centralized or decentralized? How important is delivery time? What are the costs of your orders and transport? Who has permission to order?
  • How do you keep track of changes in prices and parts files? How do you keep track of substitute parts? Can you import catalog files from the supplier into your system?
  • Is it possible to simplify the ordering process? E.g. by interfacing with supplier systems.

 

Benefits you can achieve

Is your parts order management properly organized and automated? The benefits you gain are enormous. Lower costs, more efficient processes, higher profit and more satisfied customers. This is the result of (for example):

  • Improved on-time delivery
  • Reduced inventory levels
  • Less missing parts or wrong parts
  • Better inventory visibility
  • Less time spent on placing orders
  • Lower costs for storage and transport

 

So do not try to save money on automating on your parts ordering, but make sure this is arranged outstandingly. A specialized partner can help you to optimize your ordering processes, with interfacing with suppliers and with making choices in the setup of the system.

Eelco Andringa is Senior Consultant at Dysel and specialized in automating business processes with industry-specific software solutions.

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