Integrated Parts Management

For any retailer, the cost of FM parts and supplies can amount to between 20-30% of their total FM budget, but this is only part of the story. Inefficiencies in the parts & materials supply chain and buying process result in technicians spending anywhere from 25-40% of their “wrench time” driving to, shopping for, or in some other way waiting for parts – a huge chunk of the budget.

What is Integrated Parts Management?

IPM is an end-to-end, parts management program that aligns and integrates with your Facilities Management (FM) strategy, enabling you to address and optimize the 20-30% of your annual FM budget that is often neglected.

A digitized FM parts supply chain, otherwise known as Integrated Parts Management (IPM), offers immediate opportunity to reduce cost and waste. Recently, IPM has witnessed a significant increase in industry attention and industry participation. Our research indicates that both in-sourced and third-party technicians are now leveraging the digital supply chain – primarily through eCommerce catalogs and online marketplaces, including Grainger.com, Amazon Business, Alibaba, and eBay to locate and purchase FM parts and materials for both preventive and reactive maintenance. But this activity has been limited to spot buys of one-off products, not as a supply chain solution for all sites and technicians.

Experience indicates that digital supply chain has the potential to:

• Decrease total supply chain costs by more than 10%
• Improve end-to-end visibility and control
• Improve maintenance productivity (wrench time) by as much as 20%

Unlocking the potential of FM digital supply chain through an IPM solution is not an “instant on” nor is it a panacea – it requires effort and is a complex transformation that is best approached as a journey – “Think Big, Start Small, Scale Fast.”

SDI’s comprehensive Digital Supply Chain Management (DSCM) system, ZEUS, includes a full suite of parts management services ranging from eProcurement, Inventory Management, Supplier Management, and Order-to-Shipment Tracking. The IPM mobile app specifically supports retail and facilities management technicians.