What is inventory management in project management?

Inventory management refers to the process of storing, ordering, and selling of goods and services . The discipline also involves the management of various supplies and processes. One of the most critical aspects of inventory management is managing the flow of raw materials from their procurement to finished products.

Can spare parts be treated as inventory?

Spare parts are part of Inventory and not fixed cost only if a part significantly increases the life of the asset then we capitalize it into fixed asset.

What are the 5 elements of inventory management?

Inventory management includes forecasting, planning, procurement, tracking, and optimization .

What are the three major inventory management techniques?

The three most popular inventory management techniques are the push technique, the pull technique, and the just-in-time technique . These strategies offer businesses different pathways to meeting customer demand.

What are the methods to maintain a consistent level of inventory of a part?

The most effective techniques for inventory control include categorization, labeling, and regular audits , which help maintain accurate stock levels and reduce costs. The implementation of inventory control best practices is necessary to provide organizations with accurate inventory data for easier decision-making.

What is the ideal rule in managing inventory?

The 80/20 inventory rule can provide insights on all counts and help you better manage your product lineup to optimize your balance sheet while potentially increasing profits.

What is critical spare parts inventory?

What are critical spares? A critical spare is a part that significantly threatens ongoing operations when it fails due to the difficulty of replacement . The threat could be financial, resulting from downtime and lost production.

What are the 4 ways of achieving proper inventory control?

Four popular inventory control methods include ABC analysis; Last In, First Out (LIFO) and First In, First Out (FIFO); batch tracking; and safety stock .

How do you maintain finished goods inventory?

The first step to managing inventory for finished goods is to assess your inventory needs based on your demand forecast, your production capacity, and your delivery schedule . You need to estimate how much finished goods you need to have on hand at any given time, and how often you need to replenish them.

Projects - 360° Project Review | Spare parts inventory management for WINT (2024)

ONE OF THE LEADERS IN SPARE PARTS LOGISTICS AND DISTRIBUTION CHOOSED STAMH GROUP FOR THE EQUIPMENT OF THEIR DISTRIBUTION HUB

Client: WINT, a leading company in the spare parts logistics and distribution sector, recently undertook a significant upgrade to its warehouse facility near Belgrade, Serbia;

The project involved the integration of a cutting-edge Storage Systems combining a Very Narrow Aisle (VNA) Conventional Storage System for pallets with a Multilevel Gangway Racking System and special Automated Spiral Conveyor modules for picking bins transportation between different levels of the warehouse;

This innovative approach was designed to optimize the storage, buffering, picking, sorting, and distribution of spare parts, addressing the growing demands of their logistics operations;

Project location: The new spare parts distribution center building near Belgrade, Serbia;

STRATEGIC LOCATION OF THE DISTRIBUTION CENTER IS CRUCIAL, TAKING INTO ACCOUNT MANY ASPECTS

Proximity to major cities: Establishing the logistics hub near big cities ensures quick access to high-demand markets;
Industry and specifics: Spare Parts Logistics and distribution. Effective storage, distribution, and fast supply of automotive spare parts near big cities require specialized strategies to meet the demands of customers who expect quick service and minimal downtime;
Implementation period and phases: The implementation of the new combination of different Racking Systems and Automated Conveyor and Sorting Systems was a meticulously coordinated effort;

REVIEW OF THE DIFFERENT PHASES OF ENGINEERING AND DESIGN OF A COMBINATION OF RACKS, RACKING SYSTEMS, AND AUTOMATED TECHNOLOGIES FOR THE DISTRIBUTION OF AUTOMOTIVE SPARE PARTS

Reliable engineering: The design phase at the end of 2023 involved a detailed analysis of WINT's storage and distribution needs, followed by the creation of a tailored solution combining Racks for Pallets, Multilevel Gangway Racking Systems, Automated Conveyor and Sorting Technologies and last – but certainly no least – intralogistics processes and inventory management organization;
At STAMH Group is always important to start by listening to the client. This phase ensured that the system was optimized for the specific requirements of spare parts logistics, including handling a diverse range of components with varying sizes and turnover rates;
Project management and coordination: Close collaboration between WINT, the engineering team, and the project managers from STAMH Group was crucial for the success of the Storage Systems project near Belgrade, Serbia. Regular meetings and site visits were conducted to ensure that all stakeholders were aligned and that the project stayed on schedule and within budget;
Put Into Operations: After the successful installation, the system underwent rigorous testing to ensure that it met all operational requirements. The transition to the new Storage System was smooth, with minimal disruption to WINT's ongoing operations;
Integration of Conveyors Systems: The new spare parts intralogistics solution was further improved with special Motorized Spiral Conveyor Modules for vertical transport spare parts picking bins;

Challenge: The primary challenge was to design a Racking System, and a Material Flow Solution, able to efficiently manage the high volume, and diverse nature of spare parts while also optimizing the space in WINT's distribution center, near Belgrade, Serbia;

WHAT WAS THE OTHER CHALLENGES WHEN CREATING THE EQUIPMENT FOR A NEW SPARE PARTS DISTRIBUTION CENTER?

On one hand, the warehouse system had to be prepared for the reception of heavy pallets, and on the other - for the shipment of single items or orders containing various automotive spare parts. The spare parts warehouse of WINT near Belgrade, Serbia is now able to offer even a single spare part at the doors of the facility within several minutes;

A GANGWAY RACKING SYSTEM WITH FIVE FLOORS DESIGNED FOR EFFICIENT ORDER PICKING AND SPARE PARTS ORGANIZATION AND ORDERS ASSEMBLY

Racking Structure and Layout:

Five Floors: The system has five levels, allowing for high-density storage, multiple SKUs locations, processing items with different shapes, sizes and wights;
Gangways: These are walkways that run between the racks on each floor, giving operators access to different sections. They are designed to be sturdy and wide enough to facilitate the movement of both personnel and picking carts, and bins;
Robust and Racking Structure: Vertical uprights, horizontal beams, guardrails and handrails, along the edges of the Gangways to prevent falls, and stairs or ladders to provide access to these elevated walkways from the ground floor;
Platforms for pallets in the Racking System: Each level within the Gangway Racking System is equipped with special platformsfor pallets unloading. These can be designed to accommodate various types of storage, including palletized goods, boxes, or bins;

Automated Spiral Vertical Conveyor Modules:

Conveyor Module for Empty Bins: This system is equipped with 1motorized Automated Conveyor Modulethat transports empty bins from the lower floors to the upper levels. The bins are delivered to designated areas where operators can quickly access them for order picking;
Spiral Conveyor for Ready Orders: Once bins are filled with picked items, they are placed onto a different Conveyor System, which utilizes another spiral Motorized Automated Module. This Spiral Conveyor efficiently transports the bins with completed ordersto the expedition area on the ground floor, ready for packaging and expedition;

Orders Picking Process:

Operators and Equipment: Warehouse operators are equipped with portable computers and scanning devices, enabling them to work efficiently. These devices are connected to the WMS, providing real-time information about orders, inventory locations, and bin statuses.
Picking Process: The WMS directs operators to the precise locations of items within the Racking System. The operators use their scanning devices to confirm the items picked, ensuring accuracy.
Picking bins management: After picking, the items are placed into designated bins. Once a bin is full or an order is complete, the bin is placed on the spiral conveyor for automated transportation to the expedition area.

This system is perfect for warehouses that handle a large volume of orders and need to optimize space and efficiency while ensuring accurate and timely orders fulfillment.

Achievement:

WHAT ARE THE BENEFITS OF COMBINING DIFFERENT RACKING SYSTEMS WITHIN THE SAME STORAGE FACILITY FOR SPARE PARTS

The Gangway Racking System for smaller items is particularly suited for storing a wide variety of automotive spare parts - from small components like bolts and filters to larger items like exhaust systems and body panels;

This hybrid engineering approach from STAMH Group already allows WINT to streamline its operations, improve space utilization, and enhance overall efficiency of the distribution center. The Racking and Storage Systems from STAMH Group offer stability, durability, perfect organization, intelligent Material Flow, and volume optimization in the facility;

The successful implementation of this Storage System has brought significant benefits to WINT:

Increased Storage Capacity: Gangway Racking Systems multiplicate the area of the warehouse, creating new floors with the facility and thousands of perfectly organized storage locations;
Automated bidirectional vertical picking bins transportation: The Automated Spiral Vertical Conveyors enable acceleration, and autonomous vertical transportation of empty bins, and full picking bins between the five levels of the Gangway Racking System;
Perfect Material Flow in the warehouse: The distribution center process easily pallets, non-palletized units, thousands of spare parts preparing new orders within a few minutes today.

The innovative Racking Systems implemented at WINT's Belgrade warehouse has set a new standard in spare parts logistics and distribution. The combination of advanced engineering, precise project management, and state-of-the-art technology has enabled WINT to meet its current challenges while preparing for future growth;