For manufacturing companies, parts inventory is a necessary evil. You need spare parts available to minimize downtime, but each part in inventory represents tied up capital, storage costs and risk of obsolescence. What if you could get the spare parts without the costs?
The Traditional Problem
A typical manufacturing plant maintains €200,000–€2,000,000 in MRO inventory. The annual carrying cost (inventory, insurance, depreciation, opportunity cost of capital) represents 20–30% of the inventory value. This means €40,000–€600,000 per year just to keep spare parts in stock.
Additionally, 15–25% of retained spares become obsolete before they are used. It's a waste of money.
How ZeroCost Works
The ZeroCost® model radically changes the equation:
- UNITEC owns the inventory. Spare parts are physically stored at your facility (or in a nearby hub), but remain the property of UNITEC until used.
- You pay only as you consume. No purchase orders to replenish stocks, no invoices for spare parts held in stock. You pay when a part moves from the shelf to the car.
- Automatic replenishment. When inventory drops below agreed levels, UNITEC automatically replenishes. No reorder points to manage, no risk of stock out.
- Obsolescence is our problem. If a spare part becomes obsolete before use, UNITEC bears the cost, not you.
Real World Results
Companies that implement the ZeroCost model generally see:
- 100% elimination of inventory maintenance costs
- Availability of more than 95% of critical spare parts
- 30–40% reduction in total MRO procurement costs
- Zero stock-outs in the managed categories
Is ZeroCost Right for You?
The model works best for companies with:
- Annual MRO spend exceeding €500,000
- Multiple production lines with different spare parts needs
- Desire to free up working capital and warehouse space
Find out more about ZeroCost or request a feasibility study.
