Introduction
At a Glance
It’s tempting to make parts decisions based on cost alone, but in doing so, you risk machine uptime, warranty security, and long-term cost. There are times when you should pay extra for the original-manufacturer-made part, and there are times when the third-party part is safe – but you should know when that is.
Here are our recommendations:
- Unique, OEM-built parts should be sourced from the OEM every time
- Reverse-engineered and “will fit” parts should be avoided
- Consider third-party vendors, but confirm the part’s age and condition
- Protect your warranty and know when third-party damage isn’t covered
- Commodity parts are safe swaps as long as you buy with caution
Buyers often decide whether to buy parts from their original equipment manufacturer (OEM) or a third-party vendor with this question: “How much more is the OEM’s part, and is it worth paying?”
We understand the motivation behind this question, but it fails to consider the repercussions of purchasing a part on cost difference alone. We’re not saying that you should always buy through OEM channels, but we’re saying that your parts decisions should be secure.
Risks of buying third-party parts: wrong part, poor condition, worn from age, unexpected lifecycle, etc. And with every parts gamble, you’re leveraging your uptime and budget. Make sure you are buying parts confidently, knowing your time, money, and operational success are safe.
In this article, we’ll cover:
- How sorting your parts can expedite your decision
- Whether external parts channels are secure
- What buying the wrong part will do to your line
- OEM vs. third-party parts: when to buy from each
Type of Part
Recommended Way to Buy
Internally Designed and Fabricated
Autopopulated Label (Mobile Only)
OEM
Autopopulated Label (Mobile Only)
Externally Integrated
Autopopulated Label (Mobile Only)
Original Part Manufacturer or OEM
Autopopulated Label (Mobile Only)
Obsolete
Autopopulated Label (Mobile Only)
Used, “Will Fit,” or Third-Party Vendor*
Autopopulated Label (Mobile Only)
Commodity Part: Fastener, Bearing, or Belt
Autopopulated Label (Mobile Only)
Third-Party Vendor
Autopopulated Label (Mobile Only)
Commodity Part: Custom, Electrical, or Warranty Risk
Autopopulated Label (Mobile Only)
OEM
Autopopulated Label (Mobile Only)
Autopopulated Label (Mobile Only)
*Make sure to verify age, condition, and any warranty information
Before Evaluating Channels: Sort Your Parts
Before considering whether to buy OEM or third-party, evaluate what type of part you’re looking at. At INSITE, and likely with most OEMs, every part is either internally designed or externally integrated.
Internal
We designed and fabricated the part with a specific purpose, for a specific machine
External
We purchased a component from an external manufacturer and integrated it onto our machine
Our parts are split approximately half and half – 50% internal and 50% external. But that’s just us. Other OEMs may differ. However, it’s still a good rule of thumb to investigate which group the part falls into, because that makes a difference in the security of outsourcing.
Internal Parts: Are Reverse-Engineered Parts a Valid Replacement?
With parts that are designed and fabricated internally, we generally recommend you get them straight from the source. It’s not only harder to find alternatives, but the alternatives out there are reverse-engineered.
Reverse-engineered parts are built according to measurements, and they lack intent. Internally-designed parts are built with specific intention – each piece has a purpose. The OEM not only knows what it’s there to do, but also what tolerance and lifecycle it holds.
Here are some key problems with buying reverse-engineered componentry:
- Built only by dimensions
- Failures first appear via materials
- Lifespan is unexpected or unknown
- Material grade is risky
Reverse-engineered parts are as much of a gamble as buying any generic product on the internet. You really don’t know what you’re getting, until it shows up on your doorstep and you put it to use.
External Parts: Verify the Source, Age, and Warranty
Regarding parts bought from external vendors and integrated, the most important factor to account for is part condition – rather than whose name is on the box.
Here’s our example:
We purchase our servo drives from an external manufacturer and use them on virtually all of our machines. The same parts, from the same manufacturer, are sold all over the internet. Whether you buy the part from the original manufacturer or through our channel: you’re going to receive virtually the same component.
Original manufacturers and OEMs are safe. Third-party vendors merit a little more caution. It may look like the same part (and sometimes it is), but there’s less verification of quality. A lot of third parties carry refurbished and old stock.
What may look like a good deal is actually an electrical component that’s been sitting on a shelf for two years and doesn’t work properly. That’s true in third-party warehouses the same as in your facility. Parts sourced from third parties should be verified for the following:
- Part age
- Part condition
- Warranty terms
What About “Will Fit” Parts? Another Alternative
“Will Fit” is the industry’s name for a part built by a different manufacturer, with the intent of running on a different machine. Take, for example, an internally designed conveyor chain on our case loader. If a different manufacturer took it apart, reverse-engineered it, and then created their own version – that would be a “will fit” part. It can run on our INSITE machine, but it may run and track differently.
What Will Happen If I Purchase the Wrong Part?
Regardless of source, purchasing the wrong part is going to probably show up in downtime. Sometimes it can damage the equipment, but it’s rare.
Most likely, it will end up being a case of unplanned downtime. And it will bring the same costs as any unplanned downtime: extra fees for expedited delivery, unproductive line work, waiting and scrambling operators.
It’s hard to estimate exactly how costly downtime will be for you. But it’s important to acknowledge that downtime is essentially what you’re gambling with every unverified parts purchase. It’s not just a dud part; it’s the cost of lost productivity.
What Happens to My Warranty When I Outsource Parts?
Warranty terms vary from vendor to vendor. In general, a third-party part that fails and damages its neighbor will bring about some costs, but it will not void your machine warranty.
Here’s how that situation is handled by our policy:
Let’s say you installed a different bearing or shaft assembly. It failed, and in the process, it took out another component. Our policy won’t cover that other component, since it wasn’t an INSITE-related circumstance that caused the damage. However, the rest of your equipment and componentry keeps its coverage as normal.
You have to pay for that specific instance, but it’s not altogether detrimental to your warranty, partner relationship, or long-term line.
Tips on Warranty Terms: Keep Track of Yours
Warranty terms are often shorter than a lot of buyers assume – they typically cover a year, sometimes more.
Make sure you keep stock of warranty terms on your spare parts. If the spare that’s been sitting on your shelf for 2-3 years follows industry standards, it’s likely no longer covered by the manufacturer.
If you believe a part failed due to defective manufacturing, send it back. It’s worth getting an evaluation, but don’t expect it to be replaced right away; assessments take time.
When Shouldn’t I Go to the OEM for Parts?
You may have expected us to advocate for always going with the OEM parts. We admit there’s a time and a place for OEM-made parts as well as third-party parts.
The clearest answer for when you shouldn’t go to the OEM: when they no longer manufacture the part. Machines outlive components. At some point, the OEM is going to stop stocking the unique part for a single, aging piece of equipment.
When that part reaches obsolescence – no longer being manufactured – the used and “will fit” markets become the only places where the part exists. That’s the most common reason we see customers go outside of our internal parts channel.
A Realistic Exception: Cost
Besides obsolescence, another reason we see customers going outside of our internal parts channel is cost. If the generic version is within budget and gets decent ratings, get it. We won’t pretend a part you cannot pay for is better than the one you can.
Preparing for the Used and “Will Fit” Markets
Two things are worth knowing before you dive into the obsolescence market:
- Used parts will always be a gamble
- Upgrade projects are inevitable
You really don’t know whether the used part is usable at all. And they only stay cheap until the part becomes scarce. The closer a part is to obsolescence, the more the cost rises – even beyond what it would have cost brand new.
Upgrade projects – redesigning the machine to fit a current component – are expensive upfront, but they end the recurring cycle of searching for obsolete parts. It’s a conversation worth having soon after you’ve felt the effects of part obsolescence.
How Do I Know When a Commodity Parts Swap Is Safe?
Internal fabricated parts and external obsolete parts sit at two bookends of the parts market. In between is a broad category where the choice to go OEM vs. third-party is a case-by-case scenario.
In most of your everyday parts purchasing, you’ll be faced with the decision of who and where to buy. That’s something you have to weigh within your own operation. And a lot of these middle scenarios are going to be commodity parts purchases.
Commodity Parts: Commodity parts are the basic parts that often need replacing. They typically have many suppliers who offer nearly interchangeable options.
Your decision matrix for commodity parts is your own. But if you’re looking for guidelines of when to buy swaps vs. stay original, here’s what our team recommends:
The Commodity Swap Is Usually Safe When It’s:
- A Fastener
- A Bearing
- An Adjustment Chain or Common Belt
Nothing about the bolts or screws on our machines – or most machines, for that matter – make them unique or necessary choices. However, verify that you have the correct fastener grade (e.g. grade 5 and grade 8 differ in strength) when making the swap.
Our high-speed applications don’t use bearings. If there’s a bearing and a commodity part fits, it’s a safe swap. However, we can’t guarantee the same for other OEMs.
These are both basic, off-the-shelf parts. They’re safe to swap. However, some belts are specialized enough that they merit using OEM channels.
We’d Be Wary of the Commodity Swap When It’s:
- A Custom Part
- Risking Necessary Coverage
- Only to Save Money
- A Guessed Part Number
If the part is a custom length, configuration, or adaptation, it’s best to stick with OEM-safe channels.
If the commodity part is next to another part that you need coverage on – because it’s expensive, unique, long-lead, etc. – it’s best to protect the warranty.
We especially warn against buying third-party electrical parts just to save money. Age and condition are often unknown in parts deals.
If you think it’s the right part, but aren’t confident on the exact number, either confirm it or skip the commodity part. The chance of buying the wrong part is too high.
If you follow these guidelines, commodity swaps will remain in the safe zone. However, just know that whenever you’re buying third party, you’re gambling on downtime and warranty. Any time you’re going to go for the swap, be willing to own the outcome.
Going for the commodity swap is especially risky when the line is already down. Oftentimes, lines under pressure go for whichever part ships the fastest; if that ends up being the commodity part, you’re risking extended downtime.
Our Recommendation: Make the Decision with Security
When your parts list and spares are organized well, OEM vs. third-party channel stops being a decision. Part class, number, and type are known, and your sources are secure. Here are our recommendations for keeping your parts known:
- Sort your parts into the categories of internally designed and externally integrated
- Confirm the part numbers on anything you plan to source outside of OEM channels
- Ask your OEM what a specific swap will do to warranty coverage
- Get a spare parts kit quoted for your specific machine
If you ever don’t know where to source your part, err on the side of caution or ask your OEM directly. It’s best to secure your uptime and warranty with confidence than risk your time, money, and sanity on an unknown part. The “cheap” parts choice can quickly become the most expensive one, when decisions are made without security.
Interested in Learning More About Our Aftermarket and Service?
Give INSITE a call. Our specialists are happy to walk you through the 24/7 service you’ll receive as our partner, and they’ll help you find the right fit machine to start your partnership.
