Published February 8, 2021
Issues with Storeroom Inventory Management
In a typical company-owned MRO storeroom, 90% of all parts account for about 6% of the inventory value. The majority of parts are either obsolete or duplicate parts for “just-in-case” scenarios that rarely happen. Those parts, as a result, are wasting away in the MRO storeroom. Companies are spending a lot of money on rarely-used spare parts. Fortunately, with a careful inventory management strategy, it doesn’t have to be this way.
Maintaining excess MRO inventory can be costly for the following reasons:
Excess inventory takes up important space in your warehouse. It is more difficult to access what is needed quickly, which can disrupt operations in your organization.
A larger MRO storeroom costs more in labor in the long run. There are labor costs associated with purchasing, maintaining, counting, and storing inventory that grow with the amount you keep in your storeroom.
A larger MRO inventory means more cash tied up in the storeroom. Overtime, parts can become obsolete as you evolve your organization’s equipment and processes.
How to Keep your MRO Storeroom Lean
We want to provide insight on how to tackle the three above issues, so your storeroom manageable. Our top three ways to keep your storeroom lean are:
1. Identify Critical Spares
The first step to keeping your storeroom lean is to identify your “critical spares,” or the parts that are absolutely crucial to avoiding downtimes for your plant. By identifying and prioritizing keeping these parts in ready supply, you can ensure you become “lean” without sacrificing efficiency.
2. Predictive Inventory Management
Next, examine historical ordering and maintenance data to find trends and insights that help predict MRO demand in the future. Determine the optimal number of each MRO material to have in stock. Establishing minimum and maximum numbers of parts to have in stock ensures you always have what you need, without the costliness of storing what you don’t need.
3. Condition Monitoring
The next-wave method of predictive inventory management comes from gleaning predictions not just from historical data, but real-time condition monitoring of equipment. Monitoring raises an alert when maintenance or a spare part need is imminent, and automatically triggers an order so that maintenance becomes proactive instead of reactive, eliminating downtimes altogether.
How Does Synovos Help with Storeroom Inventory?
Synovos is the expert when it comes to storeroom management. While we utilize our buying leverage to save on material costs, we also find great value applying our expertise to your storeroom setup and processes, leading to greater savings and organizational efficiencies across the board. Interested in learning more? Contact us for an expert guide on our MRO services or review our storeroom services & offerings!