MRO Inventory Optimization Solution
Parts Inventory Management
All asset-intensive industries rely on a fully-optimized MRO supply chain strategy to succeed. The implementation of a robust spare parts inventory management system is fundamental to that optimization, and also essential to ensure your company’s long term success. By understanding, managing and supporting the interconnected nature of your company’s assets and parts ecosystem, driving efficiencies and cost savings is more than a possibility – it becomes a reality. Xtivity can help you get there.
Spare Parts Inventory Management Software
A well-designed inventory management program should be focused on improving inventory mix and ensuring you have what you need to support ongoing operations. But allocating finite working capital to ensure the right part is in the right place at the right time is always a challenge.
This is where an effective parts inventory optimization system comes into play. And the baseline for a robust solution is provided through Xtivity’s MRO Inventory Optimization Solution.
Xtivity’s MRO Inventory Optimization Solution
Delivering Cost Savings and Reducing Downtime
- Xtivity’s Pulse inventory management software
- Xtivity’s Managed Service-providing subject matter expertise aimed at help you set realistic targets and focus action where it matters most during monthly reviews
- Optimized parts inventory replenishment decisions (including quantities, lead times, etc)
- Insight into ongoing performance through reports, query tools and performance dashboards
- Consolidated data from any ERP/EAM, including SAP, IBM Maximo, JDE and Microsoft Dynamics – integrating multiple data sources, if required
- And much more
- Analyzing and understanding optimized recommendations
- Prioritization of high value parts and related activities
- Identifying trends and insights
- Tracking success criteria through scorecards and business intelligence reporting
What is MRO Inventory Optimization?
All too often key ordering values such as Mins / Max and lead times for inventory items are set during system implementations and never revisited. We work in a dynamic environment with variables such as vendor performance, equipment base, maintenance plans, transportation modes, and internal processes changing constantly. Given this variability how accurate do you think ordering values set 5-7 years ago will be today?
The answer is not very accurate – upon review of our client’s data, we typically find over 90% of ordering values are no longer representative leaving operations exposed to both stock-out and obsolescence risk.
What are the Benefits of MRO Optimization?
Working directly with our clients, we ensure that input data is reflective of the most recent changes in supply or consumption patterns, ensuring that they can meet service level and availability targets.
Using collaborative tools and processes that support and enhance data integration, data analysis, optimized recommendations, parts review/approval and upload back to your ERP/EAM, we make the process as seamless as possible. In this way, our clients can focus their time and efforts where it is needed most.
Just some of the benefits include:
A 10-15% reduction in moving inventory value over the first year
30-50% free cash flow (FCF) improvement (as percentage of inventory reduction)
Improved inventory availability, making it possible to set target Services Levels and track attainment
Reduced equipment downtime through improved part availability
Improved parts inventory performance visibility through customizable reports and dashboards
Reduced On Demand, Return to Vendor, and Expedited Freight as a result of improved stocking levels
Less administrative time reviewing ordering values through the application of machine learning and targeted reviews
What Other Benefits Can Be Gained Through MRO Inventory Optimization?
Working in a dynamic environment means that variables change all the time. This means you need an intelligent inventory tracking and spare parts management / replenishment solution that considers changes as they happen.
Don’t let inaccurate Min/Max values and lead times lead to a poor parts replenishment, inventory inaccuracies or a weak inventory mix. Instead, improve your overall business strategy and help your maintenance department avoid costly downstream issues using our inventory management best practices and software solutions.
By getting a better handle on your spare parts management and inventory control system can help your organization avoid issues related to:
Evolving maintenance plans
Internal process changes
Keep Your Ordering Values Up-To-Date
How accurate do you think your ordering values are if they were set two to three years ago? Does your maintenance team have all they need to fulfill work orders? Is your spare parts inventory list still accurate today?
The unfortunate answer is that for the most part, spare parts inventory lists are not very accurate. In fact, Xtivity clients report that more than 90% of ordering values are incorrect, leaving operations exposed to stock-out and obsolescence risk. And that’s just the tip of the iceberg.
The Value of Using Xtivity’s MRO Inventory Optimization Solution
A good MRO inventory optimization solution can help you:
Improve Asset Uptime & ReliabilityDrive improved return on asset (ROA) at a global scale.
Improve Decision MakingOptimize your MRO inventory levels based on data-driven replenishment levels and lead times, track success against KPIs, and tie it all back to your ERP.
Re-Allocate CapitalReduce unnecessary parts inventory to generate free cash flow while considering asset performance, generate a 3x-5x ROI, and more efficiently allocate your organization’s working capital.
About Xtivity’s MRO Inventory Optimization Solution
Recommend optimized Min/Max reorder points and quantities for one of the spare parts in your catalogue
Recalculate lead times based on multiple inputs, lowering equipment downtime and tightening up your work order process
Prioritize and focus your inventory review/order activities and improve efficiency through a personalized workbench
Filter work queues so you can focus on improving stock levels for items with the largest impact
Help you speed your way through hundreds or even thousands of items with an exception-based approach and auto-approval technology
Correlate parts to your Assets (BOMs) and Work Orders for greater visibility, better parts ownership, and an improved work order process
Enable inventory pooling and transfers between sites
Deliver high visibility through a stable of standardized reports, business intelligence dashboards, and self-service reporting via our Report Builder
And a lot more!
Parts Inventory Management …and Beyond
While inventory management is both complex and fundamental to a successful MRO Supply Chain strategy, a winning formula involves a number of other areas as well.
Xtivity can help you improve inventory control and take your system to the next level by delving into the additional areas of the supply chain that contribute strongly to MRO parts inventory success, including:
Lead time improvement - strategies and guidance to reduce lead times
Stocking strategy development - driving improved categorization and segmentation
Introduction and Obsolescence methodology development - to help improve the the MRO lifecycle
And Xtivity doesn’t stop there.
Supply Chain Governance
Get in touch so we can discuss what our solutions can do for you.