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You are here: Home / News / Warehouse News / Seven Reasons Stocking and Using OEM Replacement Parts Makes Financial and Operational Sense

Seven Reasons Stocking and Using OEM Replacement Parts Makes Financial and Operational Sense

Seven Reasons Stocking and Using OEM Replacement Parts Makes Financial and Operational Sense

Corey Calla, Director, Lifecycle Support Team, Intelligrated Distribution center and warehouse operators invest heavily in capital projects to satisfy growing customer demand, but often neglect to adopt a lifecycle strategy to realize the true value of that asset over its useful life. When it comes to unplanned downtime of missioncritical material handling systems, the results can be crippling. Operations come to an abrupt halt, order deadlines are missed and some of that hard-earned customer satisfaction and loyalty is lost. With pressure to reduce operational costs, it may be tempting to cut corners with non-original equipment manufacturer (OEM) parts. These parts, however, are often risky and can cause expensive and stressful system failure. We’ll compare the value of a preventive maintenance program that includes a well-stocked inventory of OEM-engineered replacements to keep systems running longer, at lower cost and with better efficiency versus the true cost of cheaper “knockoffs” and examine the potential impact of each on operational performance and safety. 1: The true cost of ownership. The “bottom line” and ROI are usually at the forefront of any business decision when it’s time to make a parts purchase. Typically, OEM parts have a slightly higher price tag than generic parts. However, true total cost of ownership calculations must compare a part’s purchase price, as well as the inherent risks associated with the installation, performance and impact that a non-OEM part can have on the entire system. A genuine OEM part will install as designed with expert help only a phone call away. It will perform to specification, with no negative impact to ancillary parts. OEM warranted parts are designed to last, meeting the mean-time-between-failure (MTBF) expectations of the operator and manufacturer-recommended preventive maintenance programs. While these hidden costs and risks may not be obvious at the time a replacement […]

About the Author

Sue Boczenowski is the Marketing Manager for Abel Womack.

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