Leading operators are recognizing that inventory is not the objective – operational continuity is.
The most resilient organizations are rarely those with the largest warehouses. They are the ones that understand the criticality of their assets, continuously monitor equipment health, and use modern supply ecosystems to ensure availability when it matters.
The shift to on-demand sourcing is therefore not about reducing inventory at any cost. It is about making smarter, risk-based decisions. By combining asset criticality assessments, condition monitoring, and digital supply capabilities, organizations can move from assumptions to data-driven inventory strategies.
The result is a new approach where stock levels are determined by operational risk rather than legacy practices.
Our take: How to start the transition to on-demand sourcing
Organizations seeking to lower inventory without increasing risk should begin with a structured asset criticality assessment, not a warehouse optimization exercise. The goal is not to identify which parts can be removed from stock, but to determine which parts genuinely require physical availability and which can be supported through alternative sourcing models.
A practical approach consists of five steps:
1. Assess System and Asset Criticality
Evaluate the production, safety, environmental, and financial consequences of failure.
Apply methodologies such as RBI, RCM, FMEA, SIL assessments, and Asset Criticality Analysis.
Identify components that truly require local inventory and distinguish them from those protected by redundancy, condition monitoring, or planned maintenance. For instance, a seawater lift pump operating in a redundant configuration may not require local stock of spare shafts and mechanical seals if condition monitoring provides early warning and qualified replacements can be delivered within the available maintenance window. In contrast, a critical component in a SIL-rated shutdown valve may still justify physical inventory because its failure could directly impact safety, environmental compliance, and production continuity. The difference is not the component itself, but its criticality, consequence of failure, and the organization’s ability to restore availability within acceptable timeframes.
2. Evaluate Alternative Supply Strategies
Assess lead times, manufacturing complexity, material availability, and supplier capability.
Determine which components can be sourced, repaired, or manufactured within acceptable operational timeframes through qualified on-demand networks and digital inventory ecosystems.
3. Calculate business potential
Calculate Total Cost of Ownership (TCO) by considering not only the purchase price, but also procurement and engineering effort, quality inspections, documentation management, warehousing, inventory administration, preservation activities, cost of capital, and obsolescence risk over the component’s entire lifecycle. For long-held spare parts, the cumulative ownership cost can often exceed the original purchase price several times over.
Take advantage of existing tools available to calculate TCO on both a single component level as well as over part families and inventories.
4. Secure Availability Through Subscriptions and Ecosystems
Shift the focus from owning spare parts to securing guaranteed access to them. Nowadays, new commercial models offer benefits for both the consumer as well as the supplier side.
One example is to leverage subscription-based digital inventory services that provide access to OEM-parts with agreed lead times and sourcing workflows without carrying physical stock.
These innovative commercial models strengthen supplier collaboration, improving availability while accelerating technology adoption.
5. Digitize Internal Engineering Assets
For internally owned designs, ensure drawings, specifications, material requirements, quality requirements, and certifications are validated and readily available.
Create a digital foundation that enables rapid sourcing, manufacturing, repair, or replacement without engineering rework during critical events.
Leverage platforms such as Fieldnode Digital Inventory to ensure validated component data is readily available, enabling fast sourcing, quoting, and on-demand manufacturing across a qualified supplier ecosystem.
From Warehouses to Readiness
The key question is no longer whether a part is physically stored on a shelf. The question is whether the organization can reliably obtain it when needed.
This requires access to:
Validated engineering information
Qualified manufacturers and repair providers
Defined quality and certification requirements
Digital sourcing and execution workflows
Subscription-based access to manufacturing capacity and supplier ecosystems
In this model, companies do not invest in spare parts “just in case.” They invest in supply readiness.
For many pump, valve, and mechanical components, the future inventory strategy will look less like a warehouse and more like a service. Organizations that embrace this shift can reduce capital tied up in inventory, minimize obsolescence, and improve resilience at the same time.
The real question is no longer “Do we have the part?” but rather “Do we have guaranteed access to it?” That is where the business case for on-demand sourcing truly begins.
Stefan Jansson
Commercial Director
