MRO Inventory Optimization Program
Data transformation and consolidation are performed to maximize data quality and analytics results’ reliability
Assess criticality & classify per ABC
A. All high-critical and medium-critical fast movers
B. Medium-critical slow movers and low-critical fast movers
C. Low-critical slow movers and medium/low-critical non-movers
When optimizing MRO stock, we answer two questions per each material: (1) Should it be automatically replenished or ordered on request? (2) What are the optimal reorder point and reorder size? To answer them, we use various input data and analytical models, perform calculations, and embed frameworks
In summary, any organization that relies on maintenance, repair, and operations activities and uses MRO supplies can benefit from inventory optimization to reduce costs, prevent disruptions, and improve operational efficiency.