Manufacturing companies in the Swedish industry often make maximum use of their machines in order to meet the demand of their products. This leads to wear on the machines and thus a great need for access to spare parts and components, which is required for a functioning maintenance process. At the same time, the companies bind a lot of capital in their spare parts inventories. To achieve economies of scale and reduced costs, companies may consider centralizing their inventory structures. In view of the above-mentioned aspects, it is essential to examine the possibilities for increased co-storage of spare parts in the Swedish pulp industry.
The purpose of this study is to examine the conditions required in order to centralise spare part storage.
Based on the nature of the research questions, the choice of method is a mixture between qualitative and quantitative method, with an emphasis on the qualitative part. The approach of the work is of an inductive type, since the problem area was identified early, and no theoretical acquisition took place until later into the research process. A case study was conducted in order to obtain in-depth and detailed information concerning the research questions. This also made it possible to employ a combination of the qualitative and quantitative method. Data collection was done through literature studies, document analysis and interviews. The interviews were of a semi-structured type and took place both over the telephone and on site at the case company.
The financial aspect is the most significant motive for centralization and the biggest advantage that such a change can bring. The reason behind this is that the total number of spare parts can be reduced, which also help to lower costs in other areas. In addition, the study shows that a centralization leads to a reduced environmental impact. Barriers to centralization of the storage operations are the need for transparency, standardization and openness between the parties involved. Furthermore, a fair distribution of costs between the participants is needed, where individual performance targets exists.
The spare parts suitable for being stocked at a central warehouse are those that are shared by at least two production facilities, are bulky, have a high purchasing value, and are aging quickly.
Using a modified version of the Center of Gravity Method, a centrally located warehouse for the case company’s all Swedish mills has been located to Örebro and the surrounding area. If, however, the central warehouse is only assigned to the case company’s four northernmost mills, the warehouse should according to the modified Center of Gravity Method be located to Ludvika.