From Underestimated to The Most Respected: The Transformation Steps
Abstract
This study focuses on spare part management within the context of a maintenance service company, with a case study on one of the largest State-Owned Enterprise (SOE) subsidiaries in Indonesia engaged in port maintenance services. Spare part management has unique characteristics that distinguish it from other inventory management types, such as irregular demand patterns, a wide variety of items, obsolescence risks, and a close connection to maintenance activities. Failure in spare part management can trigger significant operational and financial problems. This research aims to explore the steps taken to improve and assess the effectiveness of these measures. A phenomenological approach was used to deeply and contextually explore the phenomena. Data was analyzed using qualitative methods with the NVivo application. The study results reveal five main gaps in spare part management, including the lack of clear SOPs, ineffective financial control, inconsistency in spare part naming, weaknesses in inventory control, and manual request processes. The transformation undertaken includes the implementation of a centra application, training, and socialization, the establishment of clear business processes, good inventory management, and increased transparency and accountability. These improvement steps have proven effective in enhancing operational efficiency, cost savings, real-time billing, accurate recording and monitoring, effective evaluation, and increased customer satisfaction. This transformation demonstrates the importance of cross-functional collaboration and good management of information flow. This study emphasizes that good spare part management can improve company performance. The novelty of this research lies in its comprehensive analysis of spare part management improvements in a large SOE context and its practical recommendations for optimizing such systems. Enhanced operational performance and strategic insights for other organizations facing similar challenges in spare part management. The study contributes to the literature by exploring the complexities of spare parts management.
Keywords
References
Ancarani, A., Di Mauro, C., and D’Urso, D. 2016. Measuring overconfidence in inventory management decisions. Journal of Purchasing and Supply Management. https://doi.org/10.1016/j.pursup.2016.05.001.
Andri, M., Hamsari, S., and Prabowo, H. Y. 2021. Analisis tren penelitian kualitatif korupsi di bidang ekonomi menggunakan content analisis Nvivo. Proceeding of National Conference on Accounting and Finance, 3(2018), 253–268. https://doi.org/10.20885/ncaf.vol3.art22.
Dai, J., Peng, S., and Li, S. 2017. Mitigation of Bullwhip Effect in Supply Chain Inventory Management Model. Procedia Engineering. https://doi.org/10.1016/j.proeng.2017.01.291.
Dennis, D. R. and Meredith, J. R. 2000. Analysis of process industry production and inventory management systems. Journal of Operations Management. https://doi.org/10.1016/S0272-6963(00)00039-5.
Drakaki, M. and Tzionas, P. 2019. Investigating the impact of inventory inaccuracy on the bullwhip effect in RFID-enabled supply chains using colored petri nets. Journal of Modelling in Management. https://doi.org/10.1108/JM2-08-2017-0081.
Elking, I., Paraskevas, J. P., Grimm, C., Corsi, T., and Steven, A. 2017. Financial Dependence, Lean Inventory Strategy, and Firm Performance. Journal of Supply Chain Management, 53(2). https://doi.org/10.1111/jscm.12136.
Elsayed, K. and Wahba, H. 2016. Reexamining the relationship between inventory management and firm performance: An organizational life cycle perspective. Future Business Journal. https://doi.org/10.1016/j.fbj.2016.05.001.
Fortuin, L. and Martin, H. 1999. Control of service parts. International Journal of Operations and Production Management, 19(9). https://doi.org/10.1108/01443579910280287.
Giard, V. and Sali, M. 2013. The bullwhip effect in supply chains: A study of contingent and incomplete literature. In International Journal of Production Research. https://doi.org/10.1080/00207543.2012.754552.
Hasbiansyah, O. 2008. Pendekatan Fenomenologi Pengantar Praktik Penelitian. Mediator, 9(56), 163–180.
Hu, Q., Boylan, J. E., Chen, H., and Labib, A. 2018. OR in spare parts management: A review. European Journal of Operational Research, 266(2), 395–414. https://doi.org/10.1016/j.ejor.2017.07.058.
Karim, N. A., Nawawi, A., and Salin, A. S. A. P. 2018a. Inventory control weaknesses – a case study of lubricant manufacturing company. Journal of Financial Crime. https://doi.org/10.1108/JFC-11-2016-0077.
Karim, N. A., Nawawi, A., and Salin, A. S. A. P. 2018b. Inventory management effectiveness of a manufacturing company – Malaysian evidence. International Journal of Law and Management. https://doi.org/10.1108/IJLMA-04-2017-0094.
Lin, Y., Liang, B., and Zhu, X. 2018. The effect of inventory performance on product quality: The mediating effect of financial performance. International Journal of Quality and Reliability Management. https://doi.org/10.1108/IJQRM-08-2017-0162.
Mintz, O. and Lilien, G. L. 2024. Should B2B Start-ups Invest in Marketing? Industrial Marketing Management, 117(1), 220–237. https://doi.org/10.1016/j.indmarman.2024.01.003.
Nawawi, A. and Salin, A. S. A. P. 2018. Slow moving stock problem: empirical evidence from Malaysia. International Journal of Law and Management. https://doi.org/10.1108/IJLMA-06-2017-0142.
Ravichandran, N. 2008. Managing bullwhip effectandcolon; two case studies. Journal of Advances in Management Research. https://doi.org/10.1108/09727980810949151.
Sanjaya, I. P. A. and Purnawati, N. K. 2021. Analisis Kinerja Manajemen Persediaan PRODUK UD. Sinar Jaya Karangasem. E-Jurnal Manajemen, 10(3), 270–289. https://doi.org/10.1007/springerreference_7174.
Wang, S., Li, B., Zhao, X., Hu, Q., and Liu, D. 2024. Assessing fossil energy supply security in China using ecological network analysis from a supply chain perspective. Energy, 288(October 2023), 129772. https://doi.org/10.1016/j.energy.2023.129772.
Zhao, B. and Tu, C. 2021. Research and Development of Inventory Management and Human Resource Management in ERP. Wireless Communications and Mobile Computing, 2021. https://doi.org/10.1155/2021/3132062.
Zhao, Z. Y., Hao, Y. X., Chang, R. D., and Wang, Q. C. 2023. Assessing the vulnerability of energy supply chains: Influencing factors and countermeasures. Sustainable Energy Technologies and Assessments, 56(January), 103018. https://doi.org/10.1016/j.seta.2023.103018.
Refbacks
- There are currently no refbacks.