Investing in automation parts is one of the vital investments for most manufacturers. Maintaining automation parts for machinery in a production environment is very expensive and often a balancing act for manufacturers. It is not uncommon for large manufacturers to have hundreds of thousands of dollars in automation parts. Therefore, it is crucial that manufacturers balance the cost of maintaining automation spare parts with the cost of downtime and the risk of part failure.
Spare parts management can become an expensive issue. Just take a moment to consider the direct and indirect costs involved in storing automation parts. Do you have a person in the store who manages stock levels, performs stock checks, and keeps the product safe? Have you considered the cost of the reserve deposit? The average cost of storage space in the U.S. It’s $5/square foot. Have you considered insurance rates? Suddenly, the cost of hosting your automation parts might be more than you expected.
With the enormous cost involved, I would have thought that manufacturers would be proactive in managing their spare parts requirements. However, many manufacturers do not track their spare parts requirements, leading them to have outdated stocks of machinery that is no longer required in the production process. These obsolete spare parts still take up space, time and are an unnecessary cost to the business.
Unfortunately, there are more costs once the surplus automation stock has been identified. Strict laws on the disposal of electrical waste products mean that many manufacturers have to pay for parts that will be removed from the site and recycled. Proper removal of surplus automation equipment can be a significant cost to large manufacturers and particularly irritating when considering the large financial outlay required to purchase these spare parts.
One of the best ways to avoid the cost associated with recycling through traditional channels is to contact an automation dealer who buys machine parts. Another alternative is to sell your spare parts through one of the many online auction sites.
Selling your automation parts on auction sites allows you to reach global marketing, but it can be costly and drive time-consuming. Also, many buyers request some kind of warranty on automation parts, which means that the items must be tested before being listed.