Converting Surplus Factory Automation Spares Into Cash

Converting Surplus Factory Automation Spares Into Cash

Investing in automation spare parts is one of the vital investments for most manufacturers. Holding automation spare parts for machinery within a production ecosystem is very expensive and often a balance act for manufacturers. It is not uncommon for large manufacturers to keep up hundred of thousands of dollars in automation spares. It is consequently crucial for manufacturers to balance the cost of holding automation spare parts against the cost of downtime and the risk of part failure.

Managing spares can become a costly affair. Just take a moment to consider the direct and indirect cost involved in stocking automation spare parts. Do you have a store person managing the stock levels, performing stock checks and keeping the product safe? Have you considered the cost of warehouse spare? The average cost of warehouse space in the USA is $5/ sq. ft. Have you considered insurance fees? All of a sudden the cost of housing your automation spares could be more than you expected.

With the huge cost involved, you would have thought manufacturers would be proactive in managing their spare part requirements. Nevertheless many manufacturers do not keep track of their spare parts requirement leading to them carrying out of use stock for machinery which is no longer required in the production course of action. These out of use spares nevertheless take up space, time and are an unnecessary cost to the business.

Unfortunately there are more costs once surplus automation stock has been identified. Strict laws on the disposal of waste electrical products method that many manufacturers have to pay for parts to be removed from site and recycled. Disposing of surplus automation equipment correctly can be a meaningful cost for large manufacturers and particularly galling when you consider the huge financial outlay required to buy these spare parts.

One of the best ways of avoid the cost associated with recycling by traditional channels is to contact a specialist automation distributor who purchases machinery parts. Another different is to sell your spare parts by one of the many online auction sites. Selling your automation spares on auctions sites allows you to reach a worldwide marketing but can be costly and attract time-wasters. Also many buyers request some kind of warranty on automation spares, which method the items should be tested before being listed.

leave your comment