MRO Inventory Optimization for Oil & Gas: Cut Downtime Without Overstocking

MRO Inventory Optimization for Oil & Gas: Cut Downtime Without Overstocking

In oil and gas, downtime is expensive – and avoidable. Yet many asset-intensive manufacturers continue to overstock MRO inventory to hedge against outages, even as capital sits idle, parts expire, and procurement cycles slow. What’s worse? This overstocking still doesn’t prevent the very outages it’s meant to avoid.

The root cause isn’t strategy – it’s visibility. For organizations running multiple ERP and EAM instances across plants, rigs, and regional teams, MRO data is fragmented and unreliable. Planning teams don’t trust what’s in the system, so they build excess inventory buffers. Finance can’t accurately report true inventory value. And procurement ends up reordering parts that already exist somewhere else in the network.

If you’re a Fortune 1000 manufacturer with 10+ sites and $100M+ in MRO inventory, this is costing you millions. But there’s a better way.

Verusen helps oil and gas operators move from overstocking to optimization – using AI-driven inventory intelligence that works with your existing ERP (SAP, Oracle, Maximo, Infor) to unify data, identify excess, and right-size stocking levels by site and criticality.

Ready to see how optimized MRO can improve uptime and free up millions in working capital? Book a call with our team to explore your inventory opportunities.

Why Overstocking Is Still the Default Strategy – and Why It Fails

Why Overstocking Is Still the Default Strategy - and Why It Fails

Overstocking happens when data is unreliable. Maintenance teams push for extra safety stock. Planners set high reorder points “just in case.” And no one has a clear line of sight across inventory locations.

But overstocking doesn’t stop outages – it often masks bigger problems:

  • Duplicate parts across sites leading to unnecessary reorders
  • No standard criticality classification, so all parts are treated the same
  • Lack of usage visibility, so demand is forecasted manually or not at all
  • Manual audits in spreadsheets, wasting thousands of hours annually

These problems are compounded in oil and gas environments:

  • Distributed assets (offshore rigs, terminals, pipelines) increase complexity
  • ERP/EAM fragmentation makes multi-site planning impossible
  • Capital expenditure scrutiny demands tighter working capital control
  • Supply chain risk is growing – and unpredictable

It’s no longer viable to operate with tribal knowledge and bloated safety stock.

What Optimization Looks Like: Modern MRO Stocking Strategy

The right strategy doesn’t require a system overhaul. It requires smarter intelligence layered on top of your existing tech stack.

A modern MRO inventory optimization approach includes:

  1. Data harmonization across ERPs/EAMs – unify materials data from SAP, Oracle, Maximo, Infor, etc., even across multiple instances.
  2. Part criticality classification – dynamically assess which items are essential, optional, or obsolete based on usage, lead time, and risk.
  3. Cross-site visibility – expose surplus materials across facilities for reallocation before triggering new POs.
  4. Predictive stocking policies – move from static min/max thresholds to dynamic stocking aligned with actual demand.
  5. Automated part reviews – eliminate months of manual spreadsheet work with AI-driven material health scans.

The result: improved uptime, reduced inventory, faster purchasing cycles, and complete visibility across your MRO landscape.

Case Study: Offshore Oil Drilling Leader Identifies $151M in Inventory Savings

A global offshore deepwater drilling company – operating across continents, rigs, and regional hubs – was grappling with inconsistent stocking strategies, unknown inventory risks, and siloed data across ERP systems.

They brought in Verusen to transform how MRO inventory was managed across the fleet. Here’s what happened:

  • Challenge: No standard criticality definitions, fragmented systems, reactive purchasing, and millions in excess stock
  • Action: Verusen unified inventory data, identified duplicates, reclassified materials by risk, and optimized policies for stocking and transfers
  • Scope: Fleet-wide inventory spanning rigs, shorebases, and regional support centers

Results:

  • $151M in total savings opportunities identified:
    • $54M from stocking policy optimization
    • $61M from network inventory transfers
    • $6M from material de-duplication
    • $16.3M from tail spend and PPV reductions
    • $14M from carrying cost reduction
  • $10M–$15M in immediate Year 1 cash savings captured
  • No ERP replacement required – Verusen worked on top of their existing systems

This wasn’t a data cleansing project. It was operational transformation at scale.

FAQs: What Leaders Ask Before Optimizing MRO

How clean does our data need to be before we start?

You don’t need a clean master. Verusen works with your existing materials data “as-is” to produce results quickly – then helps you improve it as a byproduct.

How does this work with our existing ERP or EAM system?

Verusen integrates on top of systems like SAP, Oracle, Maximo, and Infor – no rip-and-replace required. We connect across instances and unify insights.

How long does it take to see value?

Most customers see material savings identified within 30–45 days. Full optimization rollouts begin delivering measurable cash impact in under 6 months.

We’ve tried inventory projects before. What’s different this time?

Most MRO projects fail because they rely on manual analysis or disconnected systems. Verusen uses AI and proven data unification frameworks to accelerate and scale what would take internal teams years.

MRO inventory shouldn’t be a black box or a cost sink. With the right intelligence, it becomes a strategic lever for uptime, cash flow, and resilience.

If you manage 10+ manufacturing sites with over $100M in MRO inventory, it’s time to pressure-test your stocking strategy. 

Book a call and get a tailored inventory assessment from our team.