Veruson Discusses How MRO Optimization Can Improve Your Profits

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Manufacturers and distributors have a need to keep track of their materials and to optimize their inventory. Top Fortune 500 companies have as much as $40 to $50 million tied up in excess parts and materials. This money could easily be wasted since parts can easily become obsolete. Verusen explains how MRO (Maintenance, Repair, and Operations) optimization can help companies preserve their profits while operating in an agile fashion.

Optimizing MRO Inventory

The types of inventory that are included within MRO range from basic office and cleaning supplies up to expensive, technical spare parts. PPE or personal protective equipment is also included in this category.

Keeping a proper eye on these important inventory items sometimes falls by the wayside. Employees cannot do their jobs without these items, and it is of paramount importance that they are carefully tracked.

In some cases, MRO optimization has not been prioritized due to a scattered supply chain. This may mean that MRO inventory is being stored in a variety of places. Even if inventory is not stored together, it needs to be tracked from a central location.

First, companies need to take a complete inventory of the supplies and parts that are on hand. When companies have a handle on what they already have in their possession, that can shape decisions on what to buy later.

Next, companies will need to create integrated, logical systems to control their inventories. These systems can help a company stay organized and preserve their working capital. Ideally, these systems should be integrated with the company’s regular product inventory.

When there is a lack of organization, different departments are likely to try to manage inventory on their own. This can cause a great waste of money and time. Making sure that the central system is easy to use will mean that siloed inventory systems are not created.

The database will need to be maintained regularly, with new records added. Every department that uses MRO equipment should be instructed in properly entering data. Bad data is a serious problem for any organization.

Working Smoothly with MRO Optimization

Optimizing your company’s MRO inventory supports agile growth. When a company does not have to tie up millions of dollars in its inventory, it is able to make the necessary changes that come with swings in the market. Business forecasting such as that used in AI systems can help companies decide which are the most important items to stock and in what quantities.

This will also prevent expensive duplication of efforts. For example, departments within the same company could be buying face masks and gloves from different wholesalers. It is possible that one department could pay a great deal more for their supplies. Centralizing MRO inventory is a great way to save money and duplicate efforts.

MRO inventory should also be centralized to avoid the problem of parts becoming obsolete before they are used. This is an expensive area for many manufacturers. Not ordering too many parts is key to this issue.

Supply and Demand

When supply and demand are forecasted with systems such as Verusen’s AI, companies will be able to plan for future events and avoid wasting money on unnecessary items. This can also help when a company is expecting major demand and production of MRO items can be ramped up. The goal is to match the company’s activities to supply and demand without running to catch up.

Saving Money with MRO Optimization

While putting in a system to optimize MRO inventory may seem like a chore, it is vital to a well-managed company of any type. While it is primarily thought of in connection with manufacturing, every company has an MRO inventory and needs to know how to manage it properly.

Driven by Changing Data

Ideally, an MRO inventory system should be able to help a company cope when their circumstances are changing. When MRO inventory is related to supply and demand as well as other industry trends, companies can save money and preserve important space in their warehouses or storage facilities.

When MRO is not optimized, companies can lose money. Taking care of this inventory properly can help keep a company going through difficult economic times.