- SPS Blog
- Contact Us
- How to Budget for Spare Parts Costs
How to Budget for Spare Parts Costs
Here’s a simple yet field-proven method for estimating how much to budget for spare parts inventory for material handling equipment (MHE).
The manufacturer will recommend a list of critical MHE spare parts to keep in your maintenance inventory. For a typical $10 million distribution and fulfillment system, the initial spare parts list could cost $200,000. Use our chart to estimate future spare parts costs.
- In the second year after system implementation, budget about 2% of the initial inventory cost. In our example, that’s $4,000 for spare parts.
- As your MHE ages, anticipate that maintenance costs will grow.
- By the sixth year after system implementation, budget about 25% of the initial spare parts inventory cost. In our example, that’s $50,000.
Sign up to receive exclusive communications from Honeywell including product updates, technical information, new offerings, events and news, surveys, special offers, and related topics via telephone, email, and other forms of electronic communication.
Copyright © 2023 Honeywell International Inc