Historically, Maintenance, Repair, Operations (MRO) storerooms are paradoxically both overstocked and understocked at the same time. This imbalance creates challenges. MRO inventory cost can get out of hand. If you’re maintaining too much inventory, and yet not enough of the right inventory, creates wasteful spending, hurts productivity, and extends equipment downtime.
MRO Inventory Costs
This situation is usually caused by a relaxed approach to authorizing and establishing MRO stocking levels. In many cases, storerooms are stocked based on informal maintenance requests. It is not uncommon for maintenance to tell the storeroom to “buy 4 of these and put 2 in stock”. Over time, this leads to increased spending and excess inventories. However, this approach can also lead to the opposite problem of not stocking enough of the right parts, which lengthens equipment downtime, reduces maintenance productivity, and raises purchasing costs.
What the organization needs is a disciplined, data-informed method for managing its MRO inventory levels – one in which data is used to support the decision-making process. Utilizing a scientific and data-driven approach to setting MRO inventory levels is recognized as a best practice.
MRO Inventory Analysis
That is what MRO Inventory Analysis delivers. Organizations evaluate the usage, purchasing histories, and criticality (i.e., key stocking criteria) of all items, in order to identify the right amount of MRO inventory to keep on-hand.
Say goodbye to “eyeballing” inventory min/max values. Stop taking a best guess, “shooting from the hip” approach to managing your MRO inventory investment.
MRO Inventory Analysis will:
- Establish statistically driven min/max values
- Identify and dispose of excess materials
- Prioritize improvement efforts (reduction, accuracy, etc.)
- Recoup your excess inventory investment
- Right-size your inventory
Keeping the right parts, in the right quantities, improves maintenance productivity and equipment availability, and makes the most of your maintenance and capital dollars. This creates the right balance between minimizing inventory investment and spare parts availability. A win/win for maintenance and MRO supply chain operations.
Looking to create MRO savings while ensuring you have the right part when needed? If so, consider our MRO Inventory Analysis Service. The dough is in MRO, and we can help you realize it!
For a complimentary, sample analysis of your MRO inventory data contact us at info@swainsmith.com.