How much are duplicate and obsolete items costing your company? Each time a piece of equipment is retired, the parts required to maintain it should be removed from inventory unless there is other equipment on-site that matches the profile (usually the exact model number and version.) But how often is that process actually followed?
Generally, because those parts become orphaned by the retired equipment, they are merely relegated to “slow-moving inventory.” The cost of managing this unneeded inventory may include warehouse storage space, personnel costs, and internal processes such as inventory counts. Without the proper Master Data Governance processes to support an effective retirement process, it is also possible that while the equipment itself has been removed, it may still be on the books depreciating long after it has been removed from service.
PiLog recognizes that one of our key differentiators is our knowledge of both the Engineering side (equipment or fixed asset records, maintenance tasks and corresponding BOMs and spares) and the Accounting side (actual financial asset booking, with accurate useful life and proper depreciation settings.) As part of the PiLog Master Data Governance processes, we build the proper link between the Accounting and Engineering (or Maintenance) records to resolve this headache.