The future State of Handling Aftermarket Low Volume Part Numbers

Jan. 1, 2020
Aftermarket parts suppliers and distributors understand the challenges and potential benefits of dealing with and supplying low-volume, slow-moving parts.

Aftermarket parts suppliers and distributors understand the challenges and potential benefits of dealing with and supplying low-volume, slow-moving parts. To stand out from low-price volume suppliers and become the ‘go to’ supplier of choice, businesses need to handle the number of parts in addition to high demand components. The ability to act as a full-line supplier to wholesalers and warehouse distributors is a critical differentiation point between our business and the bulk low-cost importers.

In the past, providing full-line, low-volume coverage came with significant and potentially costly challenges. Today, with the application of technology and new methods of manufacturing, this segment of the business can be both profitable and beneficial. Full-line suppliers still face the risk of niche suppliers accessing and utilizing the same technology with greater agility, so the path to success is to adopt these new technologies and manufacturing processes with the speed and agility to maintain profitability.

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To handle low-part volume numbers effectively, cataloguing and product management should utilize technology to keep costs low while providing the detailed level of application information required. Product lifecycle management (PLM) and the ability to convert older designs into 3D computer-aided design (CAD) models with associated graphics and application information is necessary, as is a single system of design and application truth as a primary requirement. The challenge, however, is that much of this information exists in a legacy format or, in some cases, in human minds that are close to retirement. Taking steps to transfer this data into a digital format that can be distributed quickly to multiple systems is essential for success.

Once the product information is available, the next critical process is presenting the product to the market. Although low-volume parts are typically ideal candidates to sell electronically via e-commerce sites, this does not mean suppliers should disregard the current three-step model. Businesses should be prepared to support and enhance their current customer’s distribution model, while making it easier and better for them to sell. In fact, customers looking for low-volume parts could potentially know more about the product than the young employee, so suppliers should provide that employee with online information to help sell the product. Rich content, product details and application information are all critical. If executed correctly, this data should come directly from the PLM and product data management (PDM) systems.

The aftermarket industry has standardized tools like internet parts ordering (IPO) that support order fulfillment for these parts. Wholesalers and distributors will not keep low volume parts in stock, so manufacturers must supply the components, typically from slow-moving warehouses. IPO technology is ideal for supporting order fulfillment of this nature.  

In the past, low-volume parts were typically created using traditional tooling, such as dies and molds, which were ideally suited for high-volume production. With low-volume, however, it becomes difficult to justify a large capital tooling expense for production of only a few hundred parts per year. Manufacturers typically would have made a final production run from the tools in hopes of extending their longevity. The risk and potential expenses of this route are significant – inventory holding costs, storage considerations and potential loss due to handling in the warehouse. It was a poor solution to a problem at best. As part numbers on vehicles today continue to proliferate, this ‘last run’ option has become even more unreasonable. Fortunately, there are solutions to the problem.

Existing technology has now matured to the point that it can be considered for production parts. Specifically additive manufacturing, also known as 3D printing, is now a viable option. Additive manufacturing uses a digital model to make three dimensional solid objects by laying down successive layers of material, rather than relying on traditional subtractive machining techniques like cutting and drilling.

For the past 20 years, the technology of using UV hardened resins in a progressive print method has been used to create 3D parts for visualization or non-production prototypes. This applies to low-volume aftermarket parts because the technology can now produce ready-to-use hard metal components. This technology has been used in numerous applications, such as the creation of turbine blades in the aerospace industry and the creation of molds and punch/die sets. As the number of 3D printer manufacturers in the market has grown, the costs of this technology have decreased significantly, but businesses must take manufacturing methods into account as well in order to use the technology effectively.

As discussed earlier, the digitalization of product drawings into a full 3D model is required and manufacturers who have already taken these steps to meet the catalog and product sales data are on the right track. The next steps involve taking control of production schedules. If items are created to meet demand versus made to stock, systems and processes to receive the order and plan and schedule the machines must be in place, including the opportunity to optimize with co-produced products in order to accurately schedule the production. In addition, the ability to accurately cost these products based on machine time and materials is important. All of these processes are achievable and can be implemented by taking a cue from automotive production methods.

The future of low-volume production in the aftermarket lies with the adoption of processes and technology coupled with agile and quick implementation. The fast and innovative aftermarket parts supplier will grow and retain its customer base to effectively outpace the low cost importers in the market.

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