Encoparts
View the details behind our VRS Case Study
Encoparts is a trusted supplier of aftermarket replacement parts for heavy equipment in the mining and construction sectors. Their ability to meet urgent demand from remote worksites has made them a critical partner for companies operating in high-stakes environments where downtime is not an option.
Location:
Western Australia
Industry:
Yellow Line OEM Parts
Date:
March 2025
Project Background
Encoparts had reached a tipping point. Their existing facility was under strain, not just from the sheer volume of parts they needed to hold, but from legacy storage and stock management systems that couldn’t keep up with current demand. The knock-on effect was significant: parts weren’t always easy to locate, stock turnover lacked visibility, and valuable floor space was consumed by inefficient storage.
What made the challenge more complex was the nature of their work. Supplying parts to mine and construction sites means stocking a vast range of components — often in large quantities — with no predictable demand patterns. If a specific machine fails in the field, the required part needs to be available for immediate dispatch. That requirement meant Encoparts had to hold more stock than most warehousing operations their size, compounding their space problem.
The Constraints
The key constraint wasn’t just the volume of inventory — it was the combination of high SKU count and the need for quick access to any part at any time.
Because each machine type in mining or construction may require unique parts, and because site breakdowns are time-sensitive, Encoparts needed to maintain a deep, wide-ranging inventory across multiple equipment brands and models. This created two operational bottlenecks:
Storage inefficiency: Standard racking systems consumed valuable floor space and didn’t allow for logical organisation based on demand patterns.
Lack of stock visibility: Without live tracking or reorder alerts, replenishment often lagged behind consumption, risking stockouts of critical items.
The Solution
We worked with Encoparts to develop a customised Vertical Racking System that fit directly into their dispatch area — a key zone for picking and order preparation. The new system was compact, automated, and fully integrated with their stock management software. Here’s how it worked:
- Vertical footprint: The VRS took advantage of unused vertical space, dramatically increasing storage capacity without expanding the building footprint.
- Operator efficiency: Placing the unit in the dispatch area allowed fast, easy access for pickers, cutting retrieval time and reducing errors.
- Smart inventory tracking: The software monitored outbound stock in real time, automatically flagging when quantities dropped below the minimum threshold.
- Automated reordering prompts: With clear min/max settings, the system notified purchasing teams when to reorder, reducing the risk of part shortages from upstream suppliers.
- Scalable for growth: The racking design could easily be duplicated or expanded as operational needs increased.
The Results
The impact of the VRS was immediate and measurable. Encoparts now runs a leaner, more accurate warehouse with better use of every square metre. Key improvements include:
Greater inventory control: The system’s stock alerts and real-time tracking have virtually eliminated stockouts.
Faster, more accurate picking: Operators retrieve parts quicker and with fewer mistakes, improving overall dispatch speed.
More floor space available: By going vertical, Encoparts has reclaimed critical ground space, which has been reallocated to bulk storage or high-turnover zones.
Most importantly, Encoparts can now meet urgent part requests with confidence — helping their clients keep machines moving, sites productive, and downtime minimal.
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