Manufacturers Need to Redefine Spare Parts Purchase
Spare parts management and procurement of spares is one of the major challenge faced by manufacturing entities. It has become so vital that businesses cannot afford to ignore the transformation happening in this area which will impact profitability and balance-sheets.
Technology has changed the dynamics so rapidly that Internet of things, machine learning, predictive maintenance, 3D printing and additive manufacturing are redefining and changing the way spare parts businesses have to think and act accordingly.
In this regard, BookMyParts.com has researched 200 top manufacturing firms from Gujarat state and studied their purchase of stores and spare parts purchases for the financial year 2017-18. BookMyParts research team found that total Rs. 7600 Crore of stores and spare parts purchase by 200 top manufacturing entities of Gujarat. Out of this, companies like Essar, Sun Pharma and Arvind has crossed Rs.500 Crore purchase of spares.
|Store & Spare Consumption||Industry Sector||Amt. (in CR.)*|
|Sun Pharma. Industries||Pharmaceuticals||₹ 751.15|
|Essar Steel||Steel – Large||₹ 635.27|
|Arvind Ltd||Textiles – Denim Fabric||₹ 504.60|
In its study of 200 companies, BookMyParts.com found 31 Textiles companies purchased Rs.1000 Crore worth of spare parts, during our survey, we found some of these spare parts were imported and stocked for future requirements. As far as steel sector is concerned, spares purchase is Rs.1182 Crore by 13 major companies.
During the survey, it has been found that purchase of spare is inefficient involving multiple layer of supplier base, higher unit cost and operational cost to manage purchase department, all these added to higher procurement cost and affect the competitiveness and productivity of the organisation.
Another findings of BookMyParts.com research team was that the purchase departments who looks after spare parts buying is still by and large least focused unit within the organisation by management. There are manufacturing units who runs army of purchase department which is today’s time is not worthy and add to the cost and kill profitability.
The study was conducted by BookMyParts team using published annual accounts information.
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