Repair, Don’t Replace
Initial involvement: A large life sciences manufacturing company, based in the MidWest U.S. with global reach, enlisted Synovos to bring added value to the company’s MRO supply chain program. With more than 50,000 SKUs and $20 million in spare part inventory spread across nearly a dozen storerooms, the client was looking to take an already strong MRO program to the next level.
Supply Chain Services
Background: A global life sciences company, based on the West Coast of the U.S., develops, manufactures and markets medicines for serious medical conditions, including numerous cancer and other life-threatening illnesses. The client uses Synovos full-storeroom management services, including Supply Chain, Asset Services and Technology. In addition to the on-site personnel provided by Synovos, the client also benefits from a dedicated Enterprise Strategic Sourcing Manager.
Synovos Supply Chain Services, in addition to delivering strategic sourcing, storeroom operations and logistics, also offers off-site purchasing as well as bulk and daily purchasing, as necessary.
Does Your Storeroom Database Contribute to Maintenance Effectiveness?
Does your MRO storeroom have a “just in case” bin; the bin where unknown parts are sent for “future” use. It’s a rare plant that doesn’t have such a box, bin, or maybe shelves assigned for that purpose. In nearly every plant we enter, even with advanced technology and more sophisticated tracking capabilities, we still find parts that are decades beyond their usefulness. In one case, we found an unidentified bearing stamped with a date of manufacture as 1956. The equipment it was matched too was undoubtedly long gone.
Finding MRO Savings is in the Details
Located on the west coast of the United States, a large general manufacturing company first implemented a procurement-only services agreement with Storeroom Solutions in 2005. The storeroom itself was managed by the company’s on-site union personnel, who were responsible for managing the inventory and establishing min/max order points. Traditionally, the storeroom attendant on duty would record on paper when items needed to be ordered and share that information with procurement. Through implementation of its disciplined procurement process, Storeroom Solutions was able to peel back layers of the operation, expose savings opportunities and drive overall process improvement.
Effective Storeroom Management Saves Manufacturer $700K on MRO
A general manufacturing company, located in the Midwest U.S., detected a rapid increase in the cost of MRO materials associated with its production lines. Two of the company’s five production sites deployed Storeroom Solutions’ third-party storeroom management program to better control storeroom inventory, improve purchasing power, and accent the company’s drive for continuous improvement. So, the sharp cost increase in MRO materials was both surprising and confusing.