Enhancing Agility, Eliminating Disadvantages
A well-known FCMG manufacturer sought to reduce the expense associated with holding a broad spare parts inventory. Having parts always on hand was convenient but costly; not only did it require dedicated warehouse space and employee time to manage the inventory, but some parts held in inventory became obsolete, squandering the money spent to acquire them
But as this manufacturer learned, a just-in-time approach to spare parts had drawbacks too. Sometimes the part was out of stock at the OEM supplier; at other times, minimum order requirements forced overbuying. When there were shipping and customs delays for parts shipped from Europe and Asia, the return to full capacity utilization was delayed too. It turned out that relying on just-in-time delivery of OEM parts didn’t consistently reduce costs—instead it resulted in costs in different form.
3D printing offered a solution to both the problems of holding spare parts inventory and the problems of not holding inventory. It eliminated the inventory cost without taking away the convenience of readily available parts, and it eliminated the time-based uncertainty of relying on deliveries of OEM parts from distant suppliers.
This manufacturer partnered with OAM and today is actively building their digital spare parts inventory, beginning with more frequently needed parts. With OAM’s consultative approach, they know which parts are suited to 3D printing and can order with confidence, knowing that the 3D printed parts will perform at the same high level as OEM parts.