Utilizing supply chain management software to reduce MRO costs without increasing risk
Increase data visibility for more accurate insights
When your team implements a proper continuous MRO optimization plan into your operations, they often see lower costs through waste reduction, increased productivity, and heightened responsiveness to variability in MRO needs.
When you gain greater insights into your MRO needs, you and your operations managers are able to significantly reduce rogue spending and instead can use existing inventory data to predict future issues in the MRO procurement process.
Initial MRO optimization plans include adopting visualization tools to present common metrics such as daily workplace needs, current stockouts, overstocked levels, and maintenance emergencies so that you may be better prepared.
With a standardized methodology for MRO materials sourcing, you are more likely to build accurate budgets. MRO costs add up quickly, so taking this course of action early prevents you from either under-budgeting or over-budgeting. Not only does this keep you from wasting money or scrambling to get parts when needed, it also serves as a way to reduce the risk of production line outages.
Utilize the power of real-time AI-powered solutions
Achieving true MRO optimization occurs when companies embrace a real-time AI inventory management solution. These tools can track the flow and patterns of MRO usage while also identifying duplicate or obsolete items with ease.
AI tools also give you critical performance metrics such as replenishment lead times and equipment age to help schedule preemptive maintenance that reduces downtime, preserves customer service levels, and optimizes costs.
Centralizing your inventory data
No matter your business goals, they require an organized inventory system to track and store data, but imagine if you had the capabilities of reviewing your inventory and supplier performance data on a single platform. This real-time gathering of information and supervising data is best utilized when presented through a quickly accessible, easy to use dashboard.
So why do you need an AI-driven MRO inventory platform?
Without an MRO inventory optimizer to centralize information for your day-to-day operations, not only will you find yourself faced with the constant challenges of higher carrying costs, expensive expedites, and production line outages, you’ll also find yourself without any way to derive actionable insights to prevent any of the aforementioned problems you’re constantly seeking to avoid.
Save time and money with actionable insights
Implementing solutions that provide predictive analysis enables you to provide accurate estimates of maintenance and repair parts, which helps strengthen relationships with reliable suppliers while reducing the number of transactions you have with secondary and tertiary vendors.
In a recent article, McKinsey & Co reports “Product and service costs can be reduced by 10 to 25 percent, while the manual effort for supplier governance can decrease by 30 to 50 percent” when an organization utilizes advanced analytics solutions. Arming your team with technology that reduces wasted costs while freeing up time to focus on strategic tasks drives employee satisfaction and retention.
Artificial intelligence capabilities have significantly grown in recent years, and using it for MRO optimization helps you determine the optimum levels of inventory and storage capacity. By dividing the demand for parts on a “predictability of usage” basis, and considering purchase frequency and the variability of the quantities purchased, your company can clarify its MRO needs with predictive analysis and only carry what you need when you need it.
Get started with MRO inventory optimization and risk reduction today
Your MRO strategy can prove to be a tremendous value for your supply chain not just in terms of cost savings, but also risk reduction. However, very few companies realize that digitizing their MRO strategy can be the fastest yet least risky method for implementing supply chain management software and intelligence into your organization.
Team members find work more satisfying and meaningful when they spend more time on strategy and less time tracking inventory through spreadsheets and disconnected systems. With the implementation of intelligent MRO supply management software, your team will provide greater value through strategic initiatives that further reduce risk and better serve your customers.
As your company continues to digitally transform its agile supply chain, you’ll experience improved productivity and profitability while reducing downtime, curbing wastage and reducing wasted working capital. Take the opportunity today to gain the knowledge of best practices and product insights to give your MRO specialists a greater ability to make strategic improvements to your manufacturing operations.
To learn how SCM software and supply chain solutions can help empower your team, download the white paper on MRO optimization today.