Turning Supply Chains into Supply Circles: The Power of Data Quality and Analytics in Spare Parts Management
In today’s world, where supply chains are still under pressure, the role of data quality and analytics is becoming increasingly crucial. While many companies are searching for ways to optimize processes and enhance resilience, there are remarkable examples of how innovative approaches in data management can not only solve current challenges but also unlock entirely new business opportunities.
Around €10 billion worth of spare parts are currently sitting unused, collecting dust on warehouse shelves and often destined for landfill – a staggering waste of resources and capital. At the same time, many companies face difficulties in sourcing the parts they need quickly, leading to costly downtime and production disruptions.
Now we see platforms evolving, that not only facilitate the sale of spare parts but also significantly improve data quality.
Poor data quality is a significant issue because it hampers companies’ ability to maintain an accurate overview of their inventories. Even with modern ERP systems, data quality remains a major challenge, e.g. when managing spare parts.
Data Quality as the Key to a Circular Economy
By employing advanced data cleansing technologies and a structured approach to data harmonization, we can build an asset register for products and spare parts alike. This database can provide precise and detailed descriptions of each part, giving potential buyers confidence in what they are purchasing.
A data-driven approach allows companies to turn their unused inventories into capital while helping others strengthen their supply chain resilience. But that’s not all: by reusing spare parts, we contribute to reducing waste and promoting a circular economy. Fewer new parts need to be produced, which reduces carbon emissions and advances sustainability within the industry.
The Importance of Data Quality
The use case for intelligent re-use of spare parts illustrates how crucial data quality is to a manufacturing company’s success. Without accurate and well-structured data, it would be difficult to build a platform that harmonizes data across the estate. Markus Müller from TPA summarizes it into one statement: “Good data sells, bad data doesn’t.” This statement encapsulates what companies need to succeed in an increasingly digitized and interconnected market.
If you’re interested in learning how we can leverage the existing data in your organization, reach out to Markus and his team to discuss how you can benefit from our field-proven transformation approach here at TPA and how we can orchestrate our national and international technology partners for your benefit.
