AT&S – Global Classification of Spare Parts under ECLASS

For the project “SPICE” (Spare Parts Inventory and Cost Enhancement) AT&S introduced a new company-wide spare parts portfolio inclusive a multilingual material classification based on the internationally established standard “ECLASS”, and performs a new process for the spare parts management. Paradine was commissioned by AT&S to implement the project together with the AT&S internal project team.

The successful introduction of ECLASS is in the Spare Parts Management shows that sustainable benefits and cost reduction with well structured data is possible. This example can be applied in future to include other groups of material within the AT&S Group.

With the project SPICE AT&S earns following benefits:

  • Classification and description of product specific properties
  • Cleanup of the spare parts inventory
  • 43,75% less spare parts (reduction from 32.000 to 18.000 materials)
  • 20 % less capital tied up in spare parts (reduction from EUR 7 Mio. to EUR 5,6 Mio.)
  • 47% less suppliers (reduction from 1.500 to less than 800 suppliers)
  • Increased transparency in the range of parts carried in purchasing a better clustering of needs and a consequently reduction in the number of suppliers
  • Significant reduction in the number of purchase transactions
  • Significant reduction in production downtime
  • The ROI (Return on Investment) for the SPICE project has been achieved in under 7 months and thus, the project outlay costs payed off by the next savings after a short time
  • Inventory turns of spare parts raised from about 1.5 to a level of  3 at the end of project

Paradine Services

  • Implementation of the SPICE project by Paradine and partners and AT&S
  • Paradine was furthermore responsible for the coordination of the project

A lot of business processes today are based on a bad data base. The SPICE project made clear that the treatment of baseline data (classification, including description of materials) ist essential for clean business processes.

The successful introduction of ECLASS is in the Spare Parts Management shows that sustainable benefits and cost reduction with well structured data is possible. This example can be applied in future to include other groups of material within the AT&S Group.

Awards

The AT&S project has been recognized for the outstanding performance and procurement management solution with the Recognition Award of the Federal Association for Materials Management, Purchasing and Logistics in Austria (BMÖ) 2009.

“The award of our SPICE project is a great recognition of our ongoing efforts to improve our purchasing management,” says Richard Schaller, Director of Purchasing at AT&S, who accepted the honor by the BMÖ on behalf of the Group.

 

Download:
 AT&S-Success-Story-EN

For further information please contact us at info(at)paradine.at