How much time and money does your organization lose each year waiting for spare parts to arrive? However bad it seems, it’s likely worse. Most companies underestimate their downtime because more than 80% are unable to correctly calculate downtime costs. What if there was a way to minimize downtime and inventory costs while simplifying your parts budget and adding flexibility to your inventory management?
A Rockwell Automation parts management agreement (PMA) provides a flexible, easy-to-use, warranty tracked inventory program that ensures on-site access to critical spares, where and when you need them. Let’s explore the advantages of deploying a parts management agreement.
Parts Management Agreements Reduce Downtime
What is your tolerance for downtime? If you’re like most manufacturers, it hovers close to zero, especially if it’s downtime that can be avoided. A PMA is one of the simplest ways to minimize preventable downtime. When you partner with French Gerleman to assist you in managing your Rockwell Automation spare parts inventory, there’s no waiting for critical spares. The parts are available immediately at your facility. It’s your inventory in your facility, managed and stocked by us.
Minimize Your Inventory Costs
With a parts management agreement, your critical spare inventory is owned by Rockwell Automation, not you. Therefore, this inventory is off of your books and not subject to carrying costs. Traditionally, having the spares you need on hand the moment you need them meant purchasing and stocking parts without knowing when, or if, you’ll use them. Many of these critical spares are out of warranty by the time you use them. A PMA gives you onsite access to all of the parts you could need. Once used, you replenish the PMA inventory using Rockwell Automation’s remanufacturing service, which provides a like-new part at about half the cost of new. There is no required number of turns. Your “in service” warranty offers better protection because it starts the day the product is opened, not the day it’s purchased.
Simplified Parts Budgeting
Predictability and budgeting don’t always go hand in hand. But with a parts management agreement, you can simplify your parts budget. Rather than incurring large expenses at unpredictable times, a PMA allows you to pay for your inventory in smaller increments over time. As a result, your budget is more predictable and easier to manage throughout the year.
Bring Flexibility to Inventory Management
If you’re stocking your own spare parts, how do you handle spares that are no longer used in the installed base equipment? Chances are, you must write off those items and restock with the new parts. With a parts management agreement, when a part is deprecated or the associated equipment is decommissioned, the stock can be returned and replaced with next generation products as part of your agreement, avoiding obsolescence and waste. You can meet your service facility requirements without increasing your assets and avoid unnecessary inventory buildup over time. Also, as part of the service, PMA customers may submit all applicable variable frequency drives (VFDs) in PMA stock for electrolytic capacitor reforming after 36 months. Electrolytic capacitors in drives tend to dry out if not energized over a long period of time. Rockwell will provide this service at no charge to further insure your VFD assets are ready when you need them.
French Gerleman is Your Parts Management Agreement Partner
If you’re not yet taking advantage of a Rockwell Automation parts management agreement with French Gerleman, now is the time to reconsider. Automation is helping manufacturers maximize production and increase profitability at an increasing rate. A PMA for your critical spares helps you ensure your automation systems continue running smoothly and effectively. Contact your account manager or your nearest branch location to learn how to manage your inventory more efficiently with a parts management agreement.