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Spare Parts Inventory: How Maintenance Teams Avoid Stock-Outs Without Overstocking

To avoid spare-part stock-outs without overstocking, classify every part by how critical it is and how long it takes to get, keep critical long-lead parts in stock even if they rarely move, and set minimum and maximum levels for consumables from actual usage and lead time. Parts that are cheap to wait for can be bought when needed.

Shelves of parts bins in a store room

Frequently asked questions

What is an insurance spare?

A critical part that is rarely used but would stop operations if it failed and was not in stock, such as a gearbox or main motor. It is kept regardless of turnover and reviewed yearly.

How do you calculate a reorder point for spare parts?

Multiply average usage by average lead time, then add safety stock. Safety stock covers the gap between a normal month and a busy month with a late delivery.

How often should spare parts be counted?

Count vital parts monthly and the rest at least once a year. Cycle counts by storeroom zone spread the work out.

Should spare parts be expensed or held as inventory?

Usually, consumable spares are held as inventory and expensed when issued. Major spare parts expected to be used over more than one year may qualify as property, plant and equipment under IAS 16. Agree the policy with your auditor.

What should happen to spares for equipment that has been sold?

Sell them with the equipment where possible, or to a dealer. Otherwise, write them off and dispose of them, so they stop taking space and distorting stock value.

Give every maintenance job an owner and a record

See a request become a job order, work orders and a completed task in HYP ERP, with its cost in the report.

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