Many industries are characterized by highly capital-intensive plant and equipment. Primary manufacturing industries, like cement plants or steel mills, power generation plants, oil&gas extraction or railways, also have complex maintenance cycles on machinery with a long working life. In these situations the stock of spare parts tends to increase relentlessly. There are many reasons for this: new machines, production lines, product models, company acquisitions and mergers, migration to new ERPs, are all factors that generate the creation of new SKUs codes. New codes automatically mean new physical warehouse items, with associated purchase and storage costs. This situation not only increases warehousing costs, but also hinders other optimization processes, such as comparison between different maintenance processes to identify best practices.
Semantics technology allows us to redefine the stock, reduce its size and speed up its rotation.
TSV (Total Spending Visibility) gives a picture of the company’s historic consumption model, with a granular classification of the costs of parts, highlighting components acquired through 'Maverick' purchases that ignore company rules from providers not approved by Purchasing.
TAM (Total Attribute Management) identifies those SKUs which might be the same, allowing you to reduce stock and increase rotation.