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  • Other Added - Show Me the Money: an MRO Inventory Analysis

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    o standard structure or format. Item information was written in the manner of each individual….first onto cards, which were later transcribed into
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    You don’t have to be a genius to recognize that a lot of money is tied up in MRO inventory ….especially if your business requires the use of capital-intensive equipment. Literally millions of dollars are tied up in spare parts for day-to-day Maintenance, Repair and Operations (MRO).

    Historically, no one ever really ‘owned’ inventory, so stocking another item “just in case” had very few, if any repercussions. Inventory was often seen as a necessary evil of doing business. The term Inventory Management was almost an oxymoron. There were few procedures for setting up an item, no standard structure or format. Item information was written in the manner of each individual….first onto cards, which were later transcribed into

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    l-intensive equipment. Literally millions of dollars are tied up in spare parts for day-to-day Maintenance, Repair and Operations (MRO).

    Historically, no one ever really ‘owned’ inventory, so stocking another item “just in case” had very few, if any repercussions. Inventory was often seen as a necessary evil of doing business. The term Inventory Management was almost an oxymoron. There were few procedures for setting up an item, no standard structure or format. Item information was written in the manner of each individual….first onto cards, which were later transcribed into

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    torically, no one ever really ‘owned’ inventory, so stocking another item “just in case” had very few, if any repercussions. Inventory was often seen as a necessary evil of doing business. The term Inventory Management was almost an oxymoron. There were few procedures for setting up an item, no standard structure or format. Item information was written in the manner of each individual….first onto cards, which were later transcribed into
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    en as a necessary evil of doing business. The term Inventory Management was almost an oxymoron. There were few procedures for setting up an item, no standard structure or format. Item information was written in the manner of each individual….first onto cards, which were later transcribed into
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    o standard structure or format. Item information was written in the manner of each individual….first onto cards, which were later transcribed into a computer system. More often than not, there were no stock review processes. The only ‘management’ of inventory came with its annual physical count undertaken for financial reporting purposes.

    Typically over time, Stores inventory grew… and grew… and grew… to the point where the numbers were just too big to ignore. That’s when inventory gets the attention of management: when the numbers are just too large to ignore any longer. After all, that’s real money tied up in parts. Good money… paid out to suppliers… for maintenance workers’ peace of mind.

    The ironic thing

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