How to Develop a Spare HP Printer Parts Stocking Risk Value Strategy
Updated: Sep 12, 2019
HP Printer Parts Stocking Risk Value Strategy
Most service organizations work diligently to make sure printer repairs and preventative maintenance procedures are completed efficiently. Unfortunately, the stocking of too many spare printer parts generally does not support the organization expense efficiently.
Holding inventory has risks. As with most technology the risk are higher on the nose and tail of the life cycle. Understanding the sweet spot of parts life cycle will keep you out of trouble.
Ask your HP printer parts vendor vendor to run a usage report. Review the report and group the parts into 3 Risk / Value Categories based on the following considerations.
Latest Technology Parts (Moderate Risk = 20%-30% Loss) Prices for newer or OEM parts drop precipitously especially around the 6 -12 month release date range. This is typical because of third party parts companies ramping up supply, causing the OEM to react. I would recommend a lean inventory on this grouping of items if at all. Buy them as needed would be best.
This happens every new generation of printers to all the major OEMS. One, if not more of the hundreds of parts are set up incorrectly or the forecasts are off. The stock of the part comes up short and the market price of the part is driven up as much as 30% because of scarcity. Printer service companies raise their stocking levels because of the supply shortages and this compounds the problem.
Finally, the overdue purchase orders from the OEM and third party parts suppliers start landing all at the same time. The once hot part now has to much supply forcing the part price to plummet. Anyone holding that part in their inventory will see drop in value as well.
The most recent example of this is the HP M604 M605 M606 Optional 500 Sheet Paper Input Tray Feeder F2G68-67901. The industry came up short in the states and the price went from $350 up to $450 or more. After a few months, supply began catching up to demand and the price has stabilized. Looking for any? :)
Medium Velocity Parts- (Minor Risk = You will use the eventually) This group has the dependable movers that are mature enough where the supply and demand competition has stabilized the price. Over stocking them is more forgiving.
Mature Parts (High Risk = Complete Loss) Low velocity and low usage. This category I would not recommend stocking at all. I would further recommend checking price and availability before quoting customers as you may see price increases because of scarcity. Parts than that fall in to this group are RG5-1852 / RG5-1433. The once popular 5si/ 8100 paper input units. Any stocking on these parts is dangerous as these very well may end up in the dumpster.
Other Helpful Resources
Determining which classification a spare part belongs to is where defined criteria come into play. This criterion needs to be organization specific, based on the potential consequence of not having the part and the estimated usage of the part.
Conclusion
A spare HP printer parts risk value stocking strategy is still a somewhat mysterious and misunderstood process, yet it does not have to be. Following the simple process described in this article will allow any organization to minimize the risk to the business of not having the right spares, while simultaneously minimizing the capital invested in spares. It can be taken even further by working closely with parts suppliers and OEMs that would include their involvement and cooperation.
Metrofuser is a leading global innovator, manufacturer of printer parts, equipment, diagnostics, repair information and systems solutions for professional users performing critical tasks. Products and services include hp printer parts, printers and printer repair training. Parts include hp printer parts such as printer fusers, printer maintenance kits and other hp printer replacement parts. The company's, customers include office equipment dealerships, online retailers, repair centers and MPS service providers nationwide. Metrofuser has been named to Inc. Magazine’s fastest growing companies five consecutive years.