How to Manage your MRO Inventory Better

1. How to Manage your MRO Inventory Better https://business.moglix.com

2. The mission of the MRO warehouse is to have the right parts at the right place at the right time. Too often that objective is achieved by simply stuffing the storeroom to the gills. Some organizations do a better job of trying to determine realistic stocking plans based on criticality, estimated requirements, supplier lead times, and other variables, but then fail to review them periodically to ensure that the assumptions used in developing the stocking plans are still valid.

3. Either way, the end result is the same: over time, inventory gets out of control, and some difficult decisions have to be made. Often those decisions are made with no strategy or overarching goal other than cutting inventory as quickly as possible, and no real understanding of the impact they cause on production or reliability.

4. Identify Obsolete Material • Almost every MRO storeroom has some parts that are for equipment no longer in service, have been redesigned, or are otherwise unusable. • Identify Excess Inventory • Excess inventory is stock of usable materials that exceeds short-term anticipated requirements. For most items, the highest the inventory should ever go is the sum of the Reorder Point plus the Reorder Quantity. • Prioritize the Active Inventory • An ABC analysis will determine the items that have the greatest impact on service and investment, and therefore identify the ones that you should spend the most time on.

5. Establish a Baseline • A baseline profile uses the results of the above activities to depict a high-level view of the current state of your inventory. It shows the amount of your investment you have tied up in obsolete and excess material.

6. It shows how your inventory is distributed by activity level and how quickly materials are turning over at an aggregate level.

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