The fluid power industry is still on the rise. Are you rising with it?
Over the past five years, fluid power demand has steadily increased due to sustained growth from industrial and manufacturing companies for production purposes. With this sustained growth, fluid power equipment distribution has shown comparable growth as well and will continue to follow this trend over the next five years as industry advancements in technology occur and the demand for equipment and parts increases.
As time passes, older equipment and parts are prone to wear and breakdowns. Small to medium sized business face the difficult dilemma of where to allocate their capital, and while they would all love to buy the newest equipment as a replacement, that is not always the most feasible option. In this case, things must be repaired, and as advancements occur, older parts are phased out or no longer supported by manufacturing and distribution companies alike, causing repairs to become timely and more difficult.
While most large companies and corporations have a person or department dedicated to the search and procurement processes, small to medium sized businesses, that don’t contain the same resources, must stop vital tasks to secure the parts they need. For someone not familiar with the part or the parts search, this can become a daunting task. That’s where a parts broker comes in.
What is a Parts Broker?
Similar to shopping for a house, when shopping for a part, a broker will be your guiding light. A broker will work for you to find the best deal, in the shortest amount of time, so the client can continue to focus on the revenue building aspects of their business. A broker is not brand-specific, nor are they held to a region due to authorized partnerships. A parts broker can search the world for what you need, negotiate the best rates and arrange for everything to arrive at the correct location in a timely manner. Think of your parts broker as your own personal procurement specialist.
Broker vs. Distributor
While a parts broker can help you to find the parts you need, part brokers are not a distributor; they often do not keep their own inventory of parts on hand and they are not a “just in time” service. A broker is there to work with and for you so your energy and time can be directed to the more important aspect of the business.
While distributors tend to focus on supplying customers in the industry with the largest brands and their newest products, a broker is able to locate all types of products to fit your needs. It could be a new or old product, OEM or aftermarket part; a parts broker will work to find you the best match. Part brokers will often specialize in a certain industry, but this specialization provides customers with a level of expertise and knowledge about a product or part that they might not otherwise have. This specialization also allows the broker to find you the BEST part, not just the cheapest.
How will this improve efficiency?
Outsourcing your parts search and procurement to a parts broker will allow you to save time and focus on the important tasks on hand; streamlining your processes will create less downtime and less waiting around. This will allow you to save more money while you are able to focus on revenue building streams that increase the value of your business.
Whether you are a small, mom & pop shop or a larger enterprise, outsourcing your parts search and procurement to a parts broker can help improve your efficiency, all while providing you a knowledgeable expert to help while you focus on growing your business. You may not be able to pick up the part that day, but just remember, the parts broker is there to work for you to help you get back online in the quickest amount of time possible.
Fluid Power Equipment Distributors – US Market Research Report. (2017, October). Retrieved from https://www.ibisworld.com/industry-trends/specialized-market-research-reports/industrial-machinery-gas-chemicals/parts-dealers/fluid-power-equipment-distributors.html