Walk into your spare parts storeroom. Look at the top shelf.
Do you see a thick layer of dust on a gearbox? Do you see a motor with a faded shipping label from 2018?
That dust is Dead Capital.
It represents money that was spent years ago and has generated zero return. Even worse, it is actively costing you money to keep it there.
In the industry, we estimate that 15% to 25% of a typical MRO (Maintenance, Repair, and Operations) inventory is Obsolete.
If you have
1Millionininventory,thatmeansyouhave∗∗1Millionininventory,thatmeansyouhave∗∗
250,000** tied up in trash. Paula (the Finance Director) wants that cash back on the balance sheet. Mike (the Maintenance Manager) wants the shelf space back for parts he actually needs.
Here is why dead stock happens, and how to use data to clean it up without risking downtime.
The Hidden Cost of "Just in Case"
Maintenance technicians are risk-averse. They remember that one time in 2015 when a specific valve broke and they didn't have a spare. So, they bought two. And they have sat there ever since.
This hoarding creates a financial drain called Carrying Cost.
The Math: If you hold
100,000ofobsoleteparts,andyourcarryingcostis20100,000ofobsoleteparts,andyourcarryingcostis20
20,000 per year** just to let those parts gather dust.
The "Orphan" Part Problem
How do you know which parts are obsolete?
In legacy systems (or Excel), parts are just a list of numbers. You can't tell if "Bearing 6204" is for the new conveyor or the old palletizer you sold last year.
When you scrap a machine, you usually forget to scrap its specific spare parts. These become "Orphan Parts." They have no parent asset, but they remain on the books.
The Solution: The Data-Driven Purge
You cannot clean a storeroom with gut feeling ("I might need this"). You need cold, hard data to prove to the team that a part is safe to remove.
Fabrico automates this analysis using Asset-Part Association.
Step 1: The "Zero Usage" Report
In Fabrico, filter your inventory by "Last Used Date."
Identify every part that hasn't moved in 36 months.
Step 2: The "Parent Check"
Cross-reference the Suspect List against your Active Asset Tree.
Fabrico links parts to machines (BOMs).
-
Query: "Does Part X belong to any machine currently marked 'Active'?"
-
Finding: You realize 50 items on the list belong to "Line 4 Wrapper," which was decommissioned in 2022.
Step 3: The Liquidation
Now you have a "Kill List." These are parts with Zero Usage and No Active Parent.
Summary: Cash Flow is King
Cleaning your inventory isn't just about housekeeping; it's about freeing up working capital.
By removing the dead weight, you lower your inventory value (which Finance loves) and you make it easier for technicians to find the critical parts they actually need (which Maintenance loves).
Stop paying rent for parts that will never be used.
Ready to clean house?
See how Fabrico links spare parts to assets to prevent dead stock.
Book a Demo with Fabrico Today
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