The impact of procuring reverse engineered spare parts on the supply chain: A case study

Nayif A. Al-Theeb
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Nayif A. Al-Theeb: Saudi Aramco, Saudi Arabia

Journal of Supply Chain Management, Logistics and Procurement, 2023, vol. 5, issue 4, 325-345

Abstract: The introduction of reverse engineering (RE) to the supply chain by procuring equipment spare parts allows to enhance the procurement process and to bring additional advantages such as localisation and economic benefits to the supply chain. This paper attempts to show the impact of enabling alternative qualified and more affordable supplier sources of spare parts to be part of the procurement process along with original equipment manufacturers (OEM) to supply the plant machinery’s spare parts for maintenance. In this case study, the reverse engineering of spare parts is intended for Saudi Aramco internal installation and utilisation and not for commercial purposes. This is particularly relevant to cases of OEM parts becoming obsolete or sources are diminishing, causing increased spare parts cost. The case study sheds some light on the work done, the challenges faced to enable such process and shares the methodology used. It also shows the cost saving, materials shortening delivery time, localisation and other benefits as a result of obtaining spare parts from reverse engineering manufacturers.

Keywords: reverse engineering (RE); sustainability; circular economy; obsolete spare parts; commodity material masters (search for similar items in EconPapers)
JEL-codes: L23 M11 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:aza:jscm00:y:2023:v:5:i:4:p:325-345

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