top of page

How to Consolidate Thousands of Spare Parts Across Multiple Plants

  • Skribentens bild: Laura Andersson
    Laura Andersson
  • 18 aug.
  • 4 min läsning
Spare parts inventory

Picture two plants, fifty miles apart, both part of the same company. Plant A needs a coupling. Plant A orders it. A few weeks later, Plant B needs the exact same coupling, for the exact same reason. Plant B orders it too. Neither plant knows the other just placed the same order, and neither can see whether the part is already sitting on a shelf, fifty miles away, unused.

This isn't a hypothetical. It's the default state of spare parts management at almost every multi-plant manufacturer that hasn't specifically addressed it, and research on the topic suggests the resulting waste is larger than most procurement teams assume.


The Scale of the Problem


Verusen's research on multi-site spare parts inventory optimization puts a number on this: in environments with $100 million or more in MRO inventory, 10% to 20% is often tied up in duplicate or underutilized materials.


A separate case study from the same research describes a Fortune 500 CPG manufacturer operating across forty-one sites and multiple ERP systems that identified sixty-three million dollars in MRO inventory savings, and verified sixty million of it, largely because consolidating already-identified duplicates turned out to be immediately actionable once the duplication was visible.


Why This Happens: Siloed Systems, Siloed Decisions


The root cause isn't poor planning at any individual site. It's structural. Each plant typically has accurate local inventory and maintenance history sitting in its own ERP or EAM system, but that data doesn't connect to the plant fifty miles away. Verusen's research describes the resulting failure mode clearly: siloed stocking creates two simultaneous problems, excess inventory accumulating at sites where certain assets rarely fail, and stockout risk at sites facing genuine demand, because nobody has a combined view across the network.


A related piece on inventory consolidation from CyberStockroom frames the underlying issue in practical terms: as manufacturers grow, they accumulate multiple stockrooms, one at each plant, plus supply yards, extra storerooms, and vehicles carrying spare parts to the field, and without a unified view of where every item actually is, teams end up duplicating inventory and losing track of parts.


Why the Traditional Fix on Spare Parts Rarely Gets Finished


The obvious response, standardize the master data across every site into one consistent system, is also the reason most consolidation efforts stall. Verusen's research is blunt about this: data standardization initiatives, the traditional fix, typically take eighteen to thirty-six months and cost millions of dollars.


They require halting normal operations, hiring consulting teams, and rebuilding master data across every system. Most manufacturers never finish, and even those that do find the standardized data is obsolete within two years as new facilities, acquisitions, or system changes introduce fresh fragmentation.


This is worth sitting with, because it explains why so many multi-plant manufacturers know duplication is a problem and still haven't addressed it. The traditional remedy is genuinely too large a project for most organizations to complete, which means the duplication simply persists indefinitely.

Spare parts inventory

A More Practical Path to Consolidation of Spare Parts


The alternative to a multi-year data standardization project is to match and harmonize data across systems as they currently exist, without requiring every site to migrate to a single platform first.


1. Establish network-wide visibility without forcing a system migration. Oxmaint's guide to multi-plant spare parts inventory management describes this directly: centralized visibility across all storerooms and facilities enables inter-site part transfers, consolidated purchasing, and standardized SKU catalogs, and lets a maintenance manager view stock levels at every location from a single dashboard.


2. Match parts across sites, even when descriptions and part numbers don't align. The same physical component often exists under different SKUs at different plants, entered by different people over different years. Matching has to happen before consolidation is even possible, since you can't merge records you haven't confirmed are duplicates.


3. Quantify the duplication in financial terms. Verusen's research notes this is what makes the case actionable internally: once duplication is quantified, consolidation decisions- reuse existing inventory across sites, eliminate future duplication, redirect capital toward parts that actually reduce downtime risk- become straightforward rather than theoretical.


4. Route consolidation decisions through a clear governance process. Verusen's material describes a practical model: parts flagged as relevant across multiple sites go to a materials authority for review, who compares criticality, lead time, and failure frequency across all sites before approving a purchase or a reallocation from an existing site.


5. Keep the visibility current, not a one-time snapshot. SpareTech's research on spare parts management makes a related point: tracking the lifecycle status of parts, including discontinued components and available successors, lets teams plan transitions before parts become impossible to source, rather than reacting after a failure reveals the gap.


What This Looks Like in Practice


The measurable impact of getting this right shows up in more than just inventory value. Verusen's case study on the forty-one-site manufacturer noted that material review time per part dropped from over twenty minutes to four minutes once engineers could see full network inventory and criticality in real time, freeing the team to focus on strategic reallocation instead of reactive firefighting.


That combination, lower carrying cost and faster decision-making, is the real payoff of consolidation done well. It isn't just about shrinking a number on an inventory report. It's about giving maintenance and procurement teams across every site a shared, accurate answer to a question that's currently almost impossible to answer: do we already own this part, somewhere in our network, under another name?


Starting Without the Eighteen-Month Project


For a multi-plant manufacturer that has never formally addressed cross-site duplication, the good news is that a full data standardization initiative isn't actually the prerequisite it appears to be. Matching and quantifying duplication across existing systems, as they are today, can surface actionable consolidation opportunities in weeks rather than years, without asking any site to change how it currently operates.


SpareCompare matches spare parts data across multiple plants and ERP systems, surfacing duplicate inventory without requiring a system migration first.


 
 
 

Kommentarer


bottom of page