At Gordian, we market our spare parts management platform, Lanza, with the promise: “Advanced made simple.” But is spare parts inventory management really that complex in the first place?

  1. Yes, advanced mathematical models can be used to calculate optimal inventory parameters.
  2. And yes, some parts follow predictable statistical patterns.

But even then, it’s often reliability engineers—using methodologies like Failure Modes, Effects and Criticality Analysis (FMECA) and Reliability-Centred Maintenance (RCM)—who determine stock levels.

Shouldn’t maintenance be focused on maintenance, and supply chain on supply chain?

Is spare parts inventory management really that simple?

Here are some real-world practices I’ve observed—do any sound familiar?

  • Warehouses are run by the maintenance department, and technicians walk in and out freely to grab parts.
  • Full inventory counts are conducted once a year, revealing significant discrepancies.
  • Inventory parameters (MIN and MAX) are set by reliability engineers—not supply chain professionals.
  • Parameters are based on intuition and experience, rarely backed by a solid FMECA.
  • Parts used for preventive maintenance are kept in stock, even when not needed.
  • Ordering quantities are deliberately small to avoid high stock holding
  • Engineers manage repairables from removal to return—no supply chain involvement.
  • When a stockout occurs at an inconvenient time, the inventory levels are just raised.
  • Obsolete stock piles up—but no one is accountable for addressing it.

And the consequences?

This approach might seem manageable and really simplistic already—but the results say otherwise:

  • Frequent stockouts that cause downtime, but more often delay work orders and lead to replanning.
  • Inventory levels that rise… and never fall
  • Large volumes of obsolete stock leading to high inventory values and taking up valuable space
  • High logistics costs from excessive ordering activity
  • Accountants questioning warehouse accuracy
  • Low “hands-on tools time” (HOTT), as technicians handle (simple) logistics instead of repairs

Time for a shift: Collaboration + advanced tools

After 30+ years in spare parts environments, I’ve seen that effective inventory planning is a shared responsibility. Advanced models can absolutely help—but they require both logistics and reliability expertise to succeed. When qualified, experienced planners and engineers collaborate, this is what is possible:

  • Fewer stockouts through the correct use of statistical forecasting, calculating optimised ordering levels (MINs) and ordering quantities (MAX minus MIN)
  • Improved cycle counting techniques that cover just 10%—auditor approved
  • Preventive maintenance parts that arrive just in time, rather than being stockpiled
  • Higher HOTT, as planners—not technicians—manage repairables
  • A clear strategy for minimising and eliminating obsolete stock

Advanced doesn’t have to mean difficult

Companies need to recognise where complexity actually lies—and where it doesn’t.
At Gordian, we know that complex mathematical models can be hard to grasp. That’s why we developed a solution that’s intuitive and practical—for both inventory planners and reliability engineers.
It bridges the gap between complexity and usability … and when these two functions take hands, the results speak for themselves:

• Improved availability
• Lower costs
• Streamlined operations
• Greater peace of mind

Final thought

Determining the right spare parts inventory levels can be complex. But it doesn’t need to feel that way. With the right approach—and the right tools—you can simplify the process and deliver better results.

Advanced made simple.

Do you want to know more?

Would you like to contact us or know more about our solutions and author? Please use the link to the right.

Jürgen Donders, Expert in complex mathematical models, preferring a simple, pragmatic approach