Leverage consignment agreements to streamline parts inventory for heavy equipment attachments, using templates and KPIs to reduce costs and ensure availability.
Optimize attachment inventory with vendor consignment agreements.
Consignment agreements allow vendors to store parts like hydraulic filters and bucket teeth on-site, with payment only upon use, aligning with inventory strategies.
This approach minimizes upfront costs, ensures immediate part availability, and streamlines inventory management for heavy fleet attachments.
| Vendor | Part Type | Consignment Terms |
|---|---|---|
| CAT | Bucket Teeth | Pay on Use |
| Volvo | Hydraulic Filters | 90-Day Cycle |
| Komatsu | Track Shoes | Monthly Restock |
| John Deere | Sprockets | Pay on Use |
| Hitachi | Rollers | 60-Day Cycle |
Key systems for effective consignment management, supporting vendor integration
Steps to deploy consignment agreements for attachments, aligning with maintenance strategies
Choose reliable consignment partners.
Define payment and restock terms.
Link consignment to inventory platforms.
Track usage and refine agreements.
Consignment agreements reduce upfront costs and improve parts availability for attachments.
Reduction in upfront inventory costs
Decrease in stockouts
Improved inventory efficiency
Parts availability accuracy
"Consignment agreements cut our upfront costs by 55%, ensuring parts availability and saving $280K annually."
Procurement Manager, Titan Heavy Equipment
Answers to key queries about consignment agreements for attachments
High-demand parts like filters, track shoes, or hydraulic components work best, managed through parts strategies for quick availability.
They defer payment until usage, cutting upfront spending by up to 50% while supporting inventory practices and reducing capital tied to stock.
Inventory software and vendor portals ensure smooth stock control, linking seamlessly with maintenance systems for precise updates.
Yes, APIs enable real-time inventory and usage updates, improving maintenance workflows and order planning efficiency.
Review agreements quarterly to maintain favorable terms, adjusting stock levels and pricing in line with wear parts strategies.
Provide 4–6 hours of training on consignment workflows, contract management, and inventory reporting to ensure accurate tracking and cost savings.
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Use consignment agreements to ensure parts availability and reduce costs for heavy fleet attachments.
Fast consignment implementation
Guidance for vendor agreements
Significant cost reductions