Spare Electrical Parts: Where Have They Gone?

parts-bins Critical Spare Fuses Save $1,000,000 Per Day

Original Article by BRIAN COREKIN, President, Monster Electrical

Where Have the Spare Parts Gone? A call comes in from a gas plant who supplies oxygen for a large paper mill. He explained that fuses in their 5000 V rated motor starter had blown, and they didn’t have spares. We had the fuses in stock and ready for immediate delivery that day. He added that the manufacturer had promised to ship in three days. Their customer was about to lose $1,000,000 per day. Turned out, spares from the manufacturer took 3 weeks. This means the fuses effectively saved the customer $20 million. Ironically, one year later, the same fuse buyer asked if we were willing to buy fuses they never installed! This happens countless times.

This article is not about fuses or about saving a million dollars, but why there were no spares. Where have all the spare parts gone? Get the full story.

Dollars & Sense and Vendor Managed Inventory (VMI)

The entire supply chain endeavors to minimize expense and maximize profit. Inventory items that don’t turn regularly and/or don’t meet return on investment formulas are candidates for elimination.

Lean manufacturing and Just-In-Time inventory in facilities management has been around for decades. Today, outsourcing storeroom management allows facilities to get what they need when they need it, while not having to tie up valuable dollar resources until the needs arise. There’s less operation cost, and they produce the same or more for less
[pullquote align=”right” cite=”” link=”” color=”” class=”” size=””]“We cannot solve problems by using the same kind of thinking we used when we created them.”
– Albert Einstein – [/pullquote] money, while focusing on optimizing production and profits for their core business.

Electrical distributors and other storeroom solution providers can manage a facility storeroom (Vendor Managed Inventory), carrying only items that have higher turn rates. Bearings, gears, valves, relays, filters, fuses and the like which are less frequently required, fall into the “order as needed” category and aren’t stocked.

The days of overstocked facility storerooms, languishing product in distribution centers, and manufacturer overruns are gone. See The Evolution of the Secondary Supply Chain. Where have all the spare parts gone? Albert Einstein once said, “We cannot solve problems by using the same kind of thinking we used when we created them.”

“Need It Now” Supply Chain Alliance Fills Void

mro-storeroom

There’s a void to fill; Customers looking for needed, but not on the shelf components, are directed to the distributor. The distributor contacts the manufacturer. They are often told the standard delivery for the product is weeks away. The client has a production line down and is losing money every minute. So who has stepped up to the job?

Today, the term niche marketer is used to describe a variety of companies that concentrate on a few products. The best are known for having inventory, product knowledge and standards for product authenticity and quality ensuring the customer gets a safe and reliable product when needed.

Monster Electrical calls this the “Need it Now” supplier. To help the manufacturers and their licensed distributors, independent electrical suppliers like Monster have created a backup and urgent electrical equipment supply service.

By providing a supply of critically needed electrical equipment such as industrial and utility fuses, niche independent electrical suppliers are able to serve as a go-to source for “Need It Now” service for electrical power distribution and control equipment.

The opportunity exists for the best of these niche suppliers to form practical strategic alliances with the manufacturers and wholesalers so the supply chain can work at its full capability.

CASE STUDY

Getting A Refinery Up and Running

OPPORTUNITY
A petrochemical refinery in Louisiana had equipment unexpectedly go down and needed fuses that weren’t in stock, as well as assistance with a failed transformer in a substation, to resume production.

DISTRIBUTOR SOLUTION
The distributor account representative contacted Monster Fuses, which had the required fuses and had them flown in for early morning delivery directly to the plant. In addition, he identified the transformer manufacturer and obtained contact information for the customer to assist in having the failed transformer repaired/replaced.

RESULT
$50,000 in productivity Improvements and $150,000 in reduced downtime.

MONSTER FUSES
Monster Fuses is a “Need it Now” supplier providing safe, tested circuit protection products and equipment. Specializing in both current limiting and expulsion Medium Voltage fuses from 2.4kV to 138kV, Monster Fuses also stocks critical 600V and below Low Voltage power and semiconductor fuses.

As a factory authorized provider of all the major fuse lines, Monster Fuses invests in inventory solutions from: S&C, Eaton Cooper Power Systems, Eaton (Cutler-Hammer, Westinghouse), Mersen (Ferraz, GE, Shawmut), Eaton Cooper Bussmann & Edison, Littlefuse, SIBA and ABB. We can also assist with selecting fuse hardware, 5kV Class Control equipment and replacement parts.

We can be reached toll free 24 hours a day, 7 days a week, for emergency service in the West at 888-444-4335 and in the East at 877-444-1798. You can also search our inventory database and request a quote at monsterfuses.com and www.monstercontrols.com.