Excessive Spare Parts Inventory Costs from Siloed Management

$500K–$2M+ per year in tied-up working capital in duplicated parts across fleets, plus $100K–$500K per year in avoidable storage, insurance, and handling costs, and periodic six-figure write-offs of obsolete or expired components when projects are repowered or OEM models change. • Across dozens of projects, duplicated small inventories accumulate into six-figure tied-up capital and disposal costs when components are upgraded or standardized differently in new builds. • Capital tied up in redundant and obsolete spares across projects (often $250k–$1M+ in excess inventory for a multi-site portfolio), plus ongoing storage, insurance, and periodic write-offs of outdated parts worth tens to hundreds of thousands of dollars annually.

Compliance and engineering teams exchange spreadsheets and emails to capture what is stocked where, often right before audits or retrofit projects. • Grid compliance officers maintain ad-hoc registers of critical spares per site in spreadsheets and request periodic manual updates from site teams. • Local teams and asset/performance managers coordinate spares via ad‑hoc spreadsheets, email threads, WhatsApp/Teams messages, and personal knowledge of ‘what we usually keep on site’ instead of a centralized multi-site inventory system.