Massimiliano Da Giau
Integration of a cloud-based platform with SAP’s ERP system aimed at Spare Parts Inventory optimisation. The Luigi Lavazza S.p.A. case study.
Rel. Alessandra Colombelli. Politecnico di Torino, Master of science program in Engineering And Management, 2022
Abstract
Efficient spare parts inventory management is paramount to many companies, from capital-intensive manufacturers to service organizations, such as businesses in the Food and Beverage Industry. Different from Work-In-Process and finished product inventories, spare parts are kept in stock to support maintenance operations and to protect companies against the risk of equipment failures. Many firms face the challenge of keeping on stock large inventories of spare parts, with excessive associated holding and obsolescence costs, because of the difficulty in defining a good spare parts management strategy, and that is due to the intrinsic nature of these items, normally very slow-moving, with highly stochastic and erratic demand.
The problem stems from the fact that most companies treat spare parts like other inventory types, and they apply to the former supply chain techniques that do not work for them
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