How to Deal with Surplus MRO Spare Parts

MRO spare parts selling is not easy as much as we think, as buyer can't be paying the amount you expect all the time. So if you just expect to have high price for your products, you need to breakdown the products into categories and work on the same. Though it is a very tedious and time consuming process, this is the only to recover the expected profit value.

Spare parts involves balancing the timely availability of spares and minimizing capital blocked in overall inventory. Poor spare parts management directly leads to poor asset availability and plant reliability. Organizations, faced with the complexity of spare parts optimization, must have better control over MRO inventory.

Comprehensive data analysis develops greater understanding and visibility of all aspects of spare parts management. The insight obtained by in-depth data analysis can help organizations build and execute better strategies.

Challenges in spare parts management:

• Ensuring timely spares availability to ensure greater asset availability
• Getting timely alerts on stock-outs of critical spares
• Identifying exceptions, outliers and issues for better inventory control
• Monitoring inventory turns, spillage and carrying costs
• Understanding blocked capital and inventory carrying cost
• Making informed financial planning and budgeting decisions
• Optimizing overall MRO inventory

However, generally applicable asset reliability can come from other places. Solutions like maintenance, repair and operating (MRO) management delivers such a promise, especially when it comes to critical spare parts programs.

Businesses that invest in proper MRO management tools and strategies not only stand to save considerably on their annual spare parts inventory costs by reducing superfluousness, but they can also reap substantial and enduring ROI.

When businesses believe they truly require every single spare in their warehouse yet do little to understand why, they spread themselves thin and put their reliability at risk.

Selling MRO Spare Parts is almost a battling today.

Above are problems in sourcing MRO products. And many have done a research the this topic but only few spoke on surplus industrial MRO spares. So let's see how can be sell surplus MRO spare products here..

When dealing industrial products, one need to maintain a history of what price a spare is bought, what cost needed for maintenance, how much total money involved etc.. Then only he can know the liquidation cost and earn maximum revenue.

Mostly the liquidation value is only 5 to 15% of book value and sometimes the percentage may also vary, can be up to 50 to 60% also but depends on the type of spare parts we deal with.

This may appear to be exceptionally low at first. Be that as it may, comprehend the vast share of extra parts are machine or operational parts and hence can't be effectively exchanged. When you handle this idea, the number begins to bode well.

Consider the alternative. Holding onto parts on your shelves will only lead to their continued depreciation and them taking up valuable shop space.

Lastly, something to remember if you are selling equipment on a liquidation marketplace is that you are foregoing top price for the speed of sale. Valuing your items too highly is a good way of being passed on by buyers.

Priyanka shankar, market research analyst also a business writer. Love to write about process industries, excess inventory, excess stock dealing etc..