A company recognized its abundance of MRO spares in the storerooms, unidentifiable parts and even obsolete MRO stock. The maintenance department had difficulty managing the tens of thousands of its SKUs. The operations department questioned its equipment’s sustainability and their ability to preempt a failure. The finance team worried about the amount of capital allocated to dead stock and the accuracy of its accounting for the value of this inventory.
Net Results Group deployed its MRO Insight™ process starting with the self-assessment instrument to determine the company’s baseline measurement. Net Results Group collaborated with the company in a physical walk down on-site to build the enriched database, cross-referencing every MRO item and its associated equipment, use, manufacturer, and procurement consideration. Analyzing this data to identify MRO items and quantities critical to operational sustainability yielded an optimized procurement strategy which streamlined the MRO inventory holdings.
With a more efficient replenishment strategy, the maintenance department held more optimal inventory on-site and leveraged just-in-time supplier deliveries. With improved parts management and visibility, operations was more confident in the maintenance and performance of its capital equipment. The finance department realized more cash flow to invest in higher earning projects that otherwise would have been used to purchase unneeded MRO inventory, and the company complied with fiscal reporting standards including Sarbanes-Oxley (Section 409).