For manufacturing companies, spare parts inventory is a necessary evil. You need parts available to minimize downtime, but every part on the shelf represents tied-up capital, storage costs, and obsolescence risk. What if you could have the parts without the costs?
The Traditional Problem
A typical manufacturing plant carries €200,000–€2,000,000 in MRO inventory. The annual carrying cost (warehouse, insurance, depreciation, opportunity cost of capital) runs 20–30% of inventory value. That’s €40,000–€600,000 per year just to keep parts on shelves.
Worse, 15–25% of stored parts become obsolete before they’re ever used. That’s money thrown away.
How ZeroCost Works
The ZeroCost® model fundamentally changes the equation:
- UNITEC owns the inventory. Parts are physically stored at your facility (or in a nearby hub), but they remain UNITEC’s property until you consume them.
- You pay only on consumption. No purchase orders for stock replenishment, no invoices for parts sitting on shelves. You pay when a part moves from the shelf to the machine.
- Automatic replenishment. When inventory drops below agreed levels, UNITEC replenishes automatically. No reorder points to manage, no stockouts to worry about.
- Obsolescence is our problem. If a part becomes obsolete before use, UNITEC absorbs the cost, not you.
Real-World Results
Companies implementing the ZeroCost model typically see:
- 100% elimination of inventory carrying costs
- 95%+ availability of critical spare parts
- 30–40% reduction in total MRO procurement costs
- Zero stockouts on managed categories
Is ZeroCost Right for You?
The model works best for companies with:
- Annual MRO spend above €500,000
- Multiple production lines with diverse spare part needs
- A desire to free up working capital and warehouse space
