The Research Of BS Company Spare Parts Management Optimization

In the recent years,with more and more tough competition in market,besides the factors including performance and price of product itself,the fast and reliable aftersales service has become a crucial index to be evaluated when customers choose their equipment suppliers to cooperate with,it has been considered as a key factor which affects the equipment procurements.The effectiveness of spare parts supply is one of the most important part when talking about aftersales service.Especially today,the fast development of science and technology have brought more automations and complexities to the production equipment/lines in factories,the breakdown of a single machine could lead to shut-down of entire line which generates huge benefit loss to the owners.As a machinery/equipment supplier,building an effective and reliable spare parts supply system is so meaningful,not just to guarantee the continuity of customer’s production,but also to enhance the competitiveness of itself.This research is conducted based on the study and analysis of BS Company,focusing on those issues and optimizations on its spare parts management.Mainly regarding the parts stock classification &management,localization of the supply chain,and improvements in organization & work flow management.By deeply analyzing the current status of BS spare parts management,we see the main problems exist right now are low local order delivery rate,vast slow-moving materials in stock and high general cost of imported parts.With further analysis on causes of those issues,we conclude that they are basically created by unscientific stock management,poor and weak management of supply chain and the workflow.So firstly,classification the materials based on ABC law has been adopted,then set up safety stock monitoring mechanism based on history data of stock rotation and demon forecast model by using exponential smoothing method.Then based on analysis of material purchasing resources,localize the procurement of standard components,combining the business distributions of BS Group globally,build synergy mechanism with closest subsidiary in spare parts management including a bonded warehouse considered.At the end,the optimizations on KPI setting and workflow inside spare parts management team have been made.The implementations of those strategies have effectively reduced slow-moving materials in stock,lowered general spare parts purchasing cost and increased local order delivery rate,eventually improved the spare parts service level of BS Company in local market.