Spares Calculator helps a national telecommunications operator to improve their spare parts procurement policy

Can you safely reduce your investment in spare parts? A national telecommunications operator recently asked this very question. The answer was simple – Yes! By implementing new risk-management procurement procedures across the entire organization. The procurement and operations teams were then equipped with Spares Calculator and they now use it to carry out risk-assessments on all high-value spare parts.

We are going to improve our spare parts and support procurement policy. We will create new procurement practices with clearly defined business rules. In future – high value spare parts and firm fixed price repair contracts will not be procured until a proper risk assessment has been completed.

The company now uses Spares Calculator to:

  • Evaluate bids
  • Reduce spare parts costs
  • Reduce fixed price support costs
  • Justify capital investments to their board of directors

And the results? With minimal training, users have been able to significantly reduce procurement costs and achieve a high level of system availability. Spares Calculator has provided the data needed to challenge supplier support figures and identify optimum levels of stock.

In the words of their commercial director:

We estimate that our new procurement procedures will save us many millions over the next financial year.