What is the current status of your MRO inventory levels? If you’re holding too much, it’s going to be a major drag on your bottom line. Too little and you’ll suffer from poor service levels and excessive downtime.
Call it the “Inventory Goldie Locks” syndrome, but if you don’t strike the ideal balance between cost and risk, the cost of running your operation is going to be significantly higher than what it should be.
Optimizing inventory levels can be a complex task, and there are many moving parts that must be harnessed in order to find the ideal cost/risk balance. That said, there are at least 12 critical elements that must absolutely be a part of any successful MRO inventory optimization initiative:
- Criticality Analysis
- Demand Forecasting
- Lead Time Forecasting
- Issue Size Forecasting
- Economic Modeling
- Optimization of Reordering Parameters
- Exception Management
- Inventory Segmentation
- Spares Risk Assessment
- Spares Pooling
- Knowledge Capture
- Inventory Key Performance Indicators
These proven best practices are fundamental to achieving the significant inventory reductions, substantial bottom-line savings and improved service levels that are the hallmarks of inventory optimization.
Beyond simply getting the right parts and materials to the right place at the right time, optimizing your MRO spares inventories will help you reap substantial cost savings and drive greater operational efficiencies. And greater inventory control enables you to better meet or exceed reliability, safety and availability targets.