Manufacturing companies such as ElringKlinger AG face a number of challenges these days. Firstly, manufacturers need to avoid plant downtime at all costs, which is why they store large quantities of spare parts in their on-site warehouses. Secondly, this results in high inventory costs for spare parts which are never used (in Ø 42% of cases) and end up being scrapped.
In addition, it is likely that some spare parts are stored twice or even three times in the ERP system, as manual creation using Excel sheets is prone to errors. As a result, the unclean data structure leads to higher procurement and storage costs, as well as longer search times and thus to a higher risk of plant downtime.
To solve this problem, ElringKlinger relied on SPARETECH, which automates all processes from the identification to the ordering of spare parts.
Using the SPARETECH App, ElringKlinger AG was able to save procurement costs of 90,000€ within only 9 weeks.
"Thanks to the intelligent search of the SPARETECH app, we can identify spare parts that are already in stock around the world more reliably. That saves us unnecessary procurement costs and storage space”, explains René Hackbart, Director Maintenance at ElringKlinger AG.
Beyond the savings in procurement costs, the SPARETECH matching algorithm identified and cleaned up 7% of duplicates their material master. This enabled the automotive supplier group to reduce inventories at the push of a button.
"Thanks to the efficient and reliable data preparation of over 30,000 material numbers, we were able to immediately start to reduce inventories in all plants”, René Hackbart continues.
Benefit from the SPARETECH app as well and find out about your savings potential in a free quick check.