The world is in a supply chain crisis. As a result of the COVID-19 pandemic, global distribution and production of various products were slowed or were ground to a halt entirely. Widespread factory closures, transportation disruptions, and labor shortages have contributed to the scarcity of goods.
Even three years later, this chain reaction is felt today.
Ernst and Young surveyed 200 senior-level supply chain executives in late 2020 and 2022 and found that serious disruptions affected 57% of companies, with 72% reporting a negative effect. With the supply chain crisis still having an immensely negative impact on businesses, many C-Suite officials are asking what steps are needed to minimize the dilemma’s negative impact.
One of those is keeping a healthy inventory level. According to Bain & Company, keeping minimal stock levels can rapidly endanger a business.
“While that approach worked in a stable global economy, it now brings increased risk. The assumptions about supply chain management have shifted,” Bain & Company says.
Keeping a healthy inventory in your storeroom is critical for a business’s success.
CBT offers several solutions to help your storeroom weather the unpredictability of supply chain issues. The first of which is a Parts Management Agreement. A Parts Management Agreement, or PMA, is a service that provides customers with a pre-stocked inventory of replacement parts for their automation equipment. Working with Rockwell Automation, this agreement eliminates the worry of keeping a backlog of spare parts.
“There are several benefits to a PMA,” Kristen Tommer, Business Development Leader of Services & Solutions, explains. “It reduces lead time for replacement parts and the fixed cost is much lower than replacing parts as they come in.”
CBT additionally provides an Installed Base Evaluation or IBE. An IBE offers customers a report on their automation equipment’s lifecycle status. This can help manufacturers plan for future upgrades and maintenance to get ahead of lengthy lead times.
“An Installed Base Evaluation (IBE) provides customers with valuable insights into the lifecycle status of their equipment, allowing them to plan for future upgrades and maintenance, and ultimately, minimize downtime and improve asset management,” Tommer explains.
The company additionally provides gearbox and motor audits. CBT’s expertise provides information about what the customer has on their plant floor and compares it to what they have in their storeroom. CBT then develops a risk list based on spares the customer does not stock, enabling them to work with CBT on a solution for getting spares.
Tommer says this was a common sense option to provide.
“Gears and motors are found throughout a plant floor and accomplish various tasks,” Tommer says. “They are important components.”
CBT also offers Vendor Managed Inventory services or VMI. CBT helps maintain a customer’s critical spare part levels by establishing maximum levels based on purchase history and ensuring they never run out of inventory. Zac Hughes, VMI Manager, says the program is used regardless of application size.
“It varies,” he says. “We have customers that may only have 100 items in their warehouse but are high-volume items. Alternatively, we have customers that have thousands of parts. Everything is analyzed on a case-by-case basis.”
Hughes explains that having a minimum backlog of critical parts can minimize a facility’s downtime, as there is virtually no lead time to repair an equipment outage.
While the effects of the COVID-19 pandemic are still lingering, it has shown the importance of robust inventory. By maintaining healthy inventory levels and planning for future upgrades and maintenance, businesses can minimize downtime and keep their operations running smoothly. Utilizing customized solutions such as a PMA, IBE, and VMI, businesses can easily achieve their goals in the face of turbulent supply chain issues.
Ready to optimize your storeroom? Contact a CBT Specialist today.
