Inventory Optimization Process:
Gain Effective Control Over Your MRO Inventory
Spare parts, materials and supplies for MRO (maintenance, repair and operations) often represent millions of dollars in inventory―yet the majority sits unused, year after year. Often, personnel cannot locate items on hand (either physically or through enterprise asset management or inventory software), creating production delays and encouraging duplicate inventory creation. Under these conditions MRO expenses soar, resulting in a measurable profitability drain.
To help companies resolve this challenge, increase materials efficiency and optimize costs, Performance Consulting Associates (PCA) has developed a five-part, intensive approach to Inventory Optimization Process that leverages physical, procedural and technological enhancements to achieve meaningful change. In sum, this approach provides organizations with the control and visibility they require to optimize inventory, reap significant service improvements, virtually eliminate stock-outs and secure rapid ROI.
Plants that adopt all these solutions can reduce overall MRO inventory costs by 20 to 30%.
- Stores Best Practices: This deliverable, built from Performance Consulting Associates’ own Performance Plus MRO Materials Management Reliability Model, equips enterprises with global-standard best practices proven effective in all industries. The collection of processes, policies and procedures can be carried across all sites and provide the basis not only for current operations but also for training and continuous improvement initiatives.
- Storeroom Optimization: Working with organizational stakeholders and team members, PCA inspects, analyzes and reconfigures for optimal use the facility’s physical MRO inventory storeroom and equipment.
- MROConnection™ Toolset: PCA has assembled a toolset of MROConnection solutions that, when implemented in tandem with Stores Best Practices and Storeroom Optimization, creates a complete ecosystem for inventory optimization. Formed of a strategic alliance between PCA, Net Results Group and Xtivity, MROConnection is a repository of tools and techniques, from a variety of quality-focused vendors that support industry best-practices for asset-intensive organizations.
- Inventory Optimization: Leverage a dynamic inventory optimization tool that automatically flags impending issues (such as future stock-outs), recommends changes to order points, order quantities and lead times based on business conditions, usage patterns and more.
- Data Standardization/Catalog Management: Deploy the fastest, most accurate and automated method for enterprises to achieve MRO inventory data accuracy
- Provisioning, Disposition, and Bill of Materials: Using data-driven intelligence, this collection of tools and services from Xtivity streamlines MRO inventory, helps protect critical operations, and fosters better allocation of financial resources.
Inventory Optimization is just one component of PCA’s end-to-end asset analysis, planning, management and optimization and information delivery solution. To ensure superior asset longevity and availability and achieve the highest ROI possible, we recommend enterprises engage in all of them.