OPTIMIZING SPARE PARTS INVENTORY MANAGEMENT IN HEAVY EQUIPMENT DISTRIBUTOR WITH MULTI-BRANCH OPERATIONS: A LESSON LEARNED ABOUT STOCK SHARING IMPLEMENTATION IN THE BANJARMASIN AREA

Abstract

Meeting customer spare parts requirements in the Heavy Equipment Industry is one of the most challenging tasks. This research aims to help companies in the Heavy Equipment Industry, especially the spare parts business, find improvement solutions related to spare parts inventory management. It explores the benefits and challenges of inventory management practices in a competitive environment, focusing on ABC and FSN analysis to emphasize the importance of more efficient inventory management controls. The research implemented a new inventory location policy in the Banjarmasin sub-depot, supported by process improvements in the SAP system. It resulted in a 13.8% increase in allocation process efficiency between branches and sites and reduced delivery lead time from 5.2 to 3.2 days. An adequate location policy demonstrably level of stock optimization. While focused on a specific region due to limitations, the research provides valuable recommendations and suggests broader implementation for wider impact.