Since Covid-19 Spare parts supply has change irrevocably! Which has increased the cost and time of managing the sourcing and delivery of spare parts.
Executive SummaryGiven the change in supply management we can no longer operate the way we did before covid-19.
1. Special part orders must be done via our part order form.
2. We don't communicate with our suppliers to confirm or extract ETA's.
3. Order must be paid for before we order them and a restocking fee of 30% will be charged if we can restock them, if the supplier terms allow.
4. We can't always secure the parts ordered and paid for and can be charged if we cancel them.
5. We don't warrant or guarantee the supply of any parts that are not under our direct control.
Important Notice: Spare Parts Sourcing & Supply Policy Over the years, we've gained extensive knowledge and experience in diagnosing and resolving appliance issues. However, the nature of spare parts management has become more complex and costly, resulting in changes to how we handle parts sourcing and supply. Please allow us to explain our position:
1.
**We Only Supply and Fit Parts We Source** While we understand that customers may find parts online or from other sources at lower prices, our experience has shown that this often leads to complications, including incorrect parts being supplied, unreliable delivery timeframes, and difficulties in ensuring compatibility. Sourcing parts is not as straightforward as it may appear, and the risks associated with these issues are ultimately borne by the repair business.
To provide you with a reliable price/installation we need to manage our procurement process to be efficiently. The is simply not possible via
one off parts per customer order. Our whole fixed price model relies on purchasing parts in bulk, stocking them in our own store/van. Which also requires we exclusively
supply and fit parts via our tried and true vetted supply chain.
2.
**Unrealised Costs of Sourcing and ETA Estimates** Customers often ask for
estimated pricing and availability of parts without fully understanding the effort, expertise, and time required to source parts accurately. Tracking down an obscure/single part, coordinating with suppliers (who often don’t provide ETAs or confirmations), and managing inventory involve significant costs. These processes only succeed when the correct part is identified, received and installed within a timely and professional repair plan. Unfortunately, when a customer elects to source their own parts based on information provided during preparatory communications, we’ve found that this time spent often results in incorrect parts or unreliable timeframes, ultimately increasing frustration for both parties.
3.
**Payment, Ordering, and Risk Challenges** We also want to let our customers know that parts we order are subject to supplier terms, including non-refundable conditions, limited warranty guarantees, and shipping disruptions. In some cases, it may be impossible to restock unneeded parts—or to guarantee the timely arrival of ordered components. Customers should also be aware that our industry is experiencing dramatic increases in shipping costs and supplier delays post-COVID.
4.
**Return on Investment (ROI) Considerations** Every spare part, regardless of how small it may seem, represents a time and cost investment. We carefully assess whether sourcing, managing, and warehousing parts is a worthwhile investment for customers. Ultimately, this ensures we maintain the efficiency and viability of our business while delivering high-quality service experiences.
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Why We May Decline to Source Parts on Your Behalf We know that navigating appliance repairs—along with parts sourcing—can be frustrating, and we genuinely empathise. However, to protect both our customers' time and our resources as a business, we may occasionally decline to source or procure parts:
- If parts are sourced independently by customers but require our assistance to install.
- If there is limited or unclear ROI, or if the complexities of sourcing make the process impractical.
- If the part cannot be guaranteed or warranted based on supplier limitations.
- If the job can’t be completed in a manner that ensures satisfaction or reliability for the customer.
As the parts procurement process continues to evolve, we’ve come to recognise that the time and effort involved in sourcing individual parts for customers is becoming increasingly unsustainable as a business practice. We kindly ask that you carefully review and understand the information provided above before requesting our assistance in identifying or sourcing parts.
All too often, we invest considerable time and expertise in sourcing parts, only for the customer to bypass our efforts by ordering the parts directly and either attempting self-installation or enlisting another installer. While we understand the intention to save time or money, this approach often results in complications, including incorrect parts, voided warranties, or improper installations—all of which could have been avoided by allowing us to manage the process from start to finish.
For these reasons, we may respectfully decline to assist with parts identification, sourcing, or procurement unless the entire repair process, including parts installation, is entrusted to us. Our policies are in place to ensure we deliver reliable, efficient, and professional outcomes for all our customers.
TransportBecause we purchase most of our parts direct from Europe the freight post covid has doubled.
Parts Procurement ProcessThe sourcing of spare parts in the appliance industry typically involves identifying the required parts, researching potential suppliers (including manufacturers and independent local suppliers), evaluating their offerings, and managing the procurement and delivery process. Effective spare parts management also includes inventory control, storage, and ensuring timely availability to minimise downtime.
Easy Peasy right - I wish! Read On...1. Identification and Classification:Identify the specific part:To determine the exact part needed based on the appliance model, serial number, and the nature of the repair we need access to the manufacturers parts list and parts identification breakdown - typically an image with the parts numbered individually. Unfortunately these are proprietary and not made readily available to the repair industry. Which means we rely on our supply chain to provide these. And that's assuming that actually exist - many do not i.e. St George, Franke, Kleenmaid, IAG.
Determine required quantity:Sounds easy right; but no! To buy the part you require = 1. To order that from Europe = Many. For our European part suppliers these parts (lets say 10 off) goes into the next shipment box/pallet along with all the other 10's or 20's of specific parts. These parts are both on their shelf and order from the actual part manufacturer. So the box/pallet doesn't get packed until all items are on hand. Then they pack it and weight it and get a freight price and send us a proforma invoice.
This costs time!
2. Supplier Research and Selection:
Explore manufacturer options:Access the suppliers online ordering portal and search for the part(s) necessary for either stock or specific jobs. Assuming they are listed we add a quantity and complete that purchase. This order is then locked in (some with not returnable because it must be order direct from the manufacturer) and added to the other orders until a minimum order quantity is reached.
Consider independent suppliers:If the part is not available though our normal suppliers in Europe we must investigate alternative suppliers, including those specialising in aftermarket parts, which may offer wider availability and faster turnaround times.
Evaluate supplier reputation and reliability:Research potential suppliers based on their reputation, pricing, delivery times, and quality control procedures.
Compare quotes:Obtain quotes from multiple suppliers to ensure competitive pricing.
This costs time!
3. Procurement and Order Management:Track order status:Monitor (sounds perfect right!) the progress of orders from placement to delivery, using their tracking tools. Pfffft, the truth is we get no Estimated Time of Arrival(ETA)or up dates or confirmations etc. We wait and when they arrive we can make arrangement to undertake the the job. More often than not, we have paid in full and cross our fingers the parts will arrive, but in reality we often have to send multiple emails to keep customers inform when they ring to find out when their oven is going to be fixed.
This costs time!
4. Inventory Management and Control:
Hope the supplier has a robust inventory management system: Which includes tracking inventory and their freight company's progress. Remember this involves many, not one. The goods are pick up from the supplier dispatch by a local courier, then delivered to a freighting company's warehouse to be loaded on a truck which goes to the airport, loaded on a plane and if we are lucky it comes to Australia, normally Sydney. This get put on a truck and delivered to a local courier or interstate supplier. Then it get reloaded to a local courier and delivered to 617 Goodwood Road Panorama. We use this because all deliveries are on video. So when couriers falsely claim the goods were delivered we have hard proof. we pick it up and it's finally time to book the job time.
Optimize storage and organization:To forego the above, we have to warehouse our own stock. This allows us to buy in bulk and get better pricing. It also means we have most of what we need for up to 3 months. So when our own store stock drop to a minimum reorder value we can order them from Europe or locally and not have the 3 month wait affect our jobs.
Conduct audits:We need to go through that stock holding to identify and off load obsolete or excess parts via selling them back to suppliers or liquidating them.
This stock costs time and money
5. Supplier Relationship Management:Build strong relationships with key suppliers: This can lead to better pricing, faster delivery times, and improved communication.
Regularly review supplier performance:This is what we should do, but the relationship power has moved. Supplier often don't take phone calls anymore, they have closed many shop fronts, and most have moved to online purchasing only. We'd love to be able to review our suppliers, but this is a pipe dream. Most suppliers are a fixed option. If we don't buy it from them, we just don't get the part(s). This means we wait with our fingers crossed.
Diversifying suppliers:We did this when the GFC hit. Local suppliers (Australian) ran dry of critical parts, larger part buyer bought up dwindling stocks to sell at a higher price. This meant many customers having to wait a long time to finally fix their oven. To mitigate the risk of these sort of disruptions since then we moved most of our purchasing off shore.