Purchased parts are where many plant problems begin. A supplier slips, a tariff changes or a part quietly stops moving, and nobody notices until it shows up as a shortage, a margin hit or a full shelf. A short, regular review of your purchased parts catches many of these issues earlier. This article explains what to look at and how to run the review.
Why monthly?
Annual reviews miss too much, because suppliers, lead times and trade rules can change several times a year. Weekly reviews are hard to sustain for a small team. A monthly rhythm is frequent enough to catch changes and light enough to keep going. It also fits neatly alongside a monthly S&OP meeting.
What to look at
A useful review answers three questions.
1. Which parts depend on one supplier?
List purchased parts with only one active supplier, and flag those used in your most important products. Our guide to single-source supplier risk explains how to score them.
2. Which parts are slowing down?
Compare each part’s on-hand stock with recent usage. Parts with growing coverage are on their way to becoming dead stock. Catching them early means you can stop reordering before the problem grows. See how to find and clear dead stock.
3. Where are duty costs stacking up?
For imported parts, combine annual volume, value and duty rate to see where duty dollars concentrate. When a single-supplier part also carries heavy duty and long lead times, the risks stack up. See practical ways to reduce tariff exposure.
What the output should look like
The review should fit on one page. If it runs to twenty pages, nobody will read it. A good format includes:
- A short list of parts that need a decision this month
- The reason each part is on the list
- A suggested action, such as “request a second quote,” “pause reorders” or “check origin documentation”
- Changes since last month, so the team can see what is getting better or worse
How to run it in-house
You can run a basic version with a spreadsheet:
- Export purchased parts with supplier, usage, on-hand stock, lead time, cost, country of origin and HTS code.
- Count active suppliers per part over the last twelve months.
- Calculate months of coverage for each part.
- Estimate annual duty per part using volume, value and the applied rate.
- Sort and filter to find the parts that appear on more than one list.
- Assign an owner and an action for each flagged part.
The hardest part is usually keeping it going each month, rather than the first run. Automating the export and keeping the template simple both help.
Parts Desk: the review, done for you
Parts Desk is designed for plants that want the answers without running a new system. It works from the data you already have.
Who it suits
A monthly parts review is most useful for plants that:
- Buy a large share of their components from outside suppliers
- Import parts or materials subject to duty
- Have a small purchasing or planning team
- Want a regular, simple view rather than a new software system
For the wider guide to software options, see supply chain software for small manufacturers. If you would rather have help setting up an in-house review, we can scope that with you. Free call first, scope agreed before we start.
Frequently asked questions
What data does Parts Desk need?
A purchased-parts list from your ERP or spreadsheets. The early access details on the Optimization Lab page explain what to include and how data is handled.
How is a parts review different from MRP?
MRP tells you what to order based on current rules. A parts review steps back and asks whether those parts carry supplier, inventory or duty risks that the rules do not show.
Can we run both an in-house review and Parts Desk?
Yes. Some teams may use an outside review as a check on their own process.