--- layout: default_v3 language: default permalink: perpetual-inventory/mro-inventory.html i18n_link: 2666 updated: 2020-12-31 #--- article key-values ---# collection: default_topiccluster t_keyword: MRO Inventory tags: Inventory Ordering Software, MRO Inventory type: supporting page_id: 2666 hreflang_id: 2666 parent_id: 2651 date_published: 2020-12-31 date_modified: 2020-12-31 #--- javascript schema ---# javascript_schema: - script: jquery_3_2_0_min - script: bootstrap_min - script: article_infinite_scroll - script: article_mix_infinitescroll - script: article_mix - script: article_mix_faq - script: article_mix_toc #--- section schema ---# section_schema: - section: nav-main_menu - section: article_body_v2 - section: footer - section: schedule_demo_cta #--- page key-values ---# meta_tags: t_meta_title: MRO Inventory Management - 5 Best Practices t_meta_description: By maintaining healthy MRO inventory levels, companies can optimize internal operations to maintain efficiency and a smooth workflow. t_meta_abstract: By maintaining healthy MRO inventory levels, companies can optimize internal operations to maintain efficiency and a smooth workflow. i_meta_image: article_body: json-ld_article: v_date_published: 2020-12-31 v_date_modified: 2020-12-31 author: p_author_id: 113 t_author: Chloe Henderson p_author_url: chloe-henderson.html i_author: 113.jpg t_author_description: Chloe received a bachelor's degree in journalism and mass communication from Ashford University and is currently a digital content creator for Hubworks. In her free time, she enjoys acting, writing, and spending time with family. p_author_facebook: //www.facebook.com/HubWorksApp p_author_twitter: https://twitter.com/HubworksApp p_author_linkedin: p_author_instagram: feature_snippet: p_type: text t_title: t_description: content: heading: t_title: MRO Inventory Management - 5 Best Practices t_description: By maintaining healthy MRO inventory levels, companies can optimize internal operations to maintain efficiency and a smooth workflow. image: i_image: mro-inventory-management-5-best-practices-1609301556-4015.png t_image_description: maintenance repair operations mro v_image_attribution: //pixabay.com/photos/factory-nostalgia-machines-past-4477482/ v_image_license: Creative Commons Zero v_video: paragraphs: - t_headline: t_text: There is a specific type of non-lucrative inventory that businesses have to maintain in order to produce finished merchandise.

Maintenance, repair, and operation (MRO) inventory is used to keep equipment and operations optimized at all times. Without MRO supplies, machines can experience increased technical difficulties, malfunctions, and breakdowns. p_headline_type: h2 image: i_image: t_description: v_attribution: v_license: callout_text: - t_headline: What is MRO Inventory? t_text: MRO inventory consists of supplies used during the manufacturing process but is not part of the finalized product. Typically, this inventory is controlled by the organization's maintenance department. Common MRO items include-


While businesses do not generate a profit from MRO inventory, it is necessary to produce goods and services. This inventory requires routine replenishment and, therefore, its own budget to maintain healthy stock levels.

Without MRO supplies, companies can't perform maintenance, repairs, or diagnostics on internal operations. MRO inventory prevents equipment malfunctions so businesses can maintain a smooth workflow. p_headline_type: h2 image: i_image: what-is-mro-inventory-1609347715-4496.png t_description: //pixabay.com/photos/office-supplies-table-business-1149055/ v_attribution: //pixabay.com/photos/office-supplies-table-business-1149055/ v_license: Creative Commons Zero callout_text: - t_headline: The Importance of MRO Inventory t_text: The importance of MRO inventory becomes obvious when discussing the various direct and indirect expenses that companies would have to supplement if they didn't maintain these materials- p_headline_type: h2 image: i_image: the-importance-of-mro-inventory-1609347715-1851.png t_description: //pixabay.com/photos/notebook-pencil-paper-clip-office-2560953/ v_attribution: //pixabay.com/photos/notebook-pencil-paper-clip-office-2560953/ v_license: Creative Commons Zero callout_text: - t_headline: Product Stoppages t_text: MRO materials keep production lines operating so businesses can continue producing goods. If these supplies run out, all manufacturing must stop, meaning all employees must standby. Meanwhile, the company must pay their waiting employees, as well as expedited shipping to get MRO inventory as soon as possible.

Even once the materials arrive, it may take days or weeks for technicians to fix machinery, resulting in another heft expense. All the while, the business is losing potential sales from the downtime, significantly impacting their bottom line.

Therefore, organizations should actively monitor their MRO levels to ensure there is always enough to support current operations. p_headline_type: h3 image: i_image: t_description: v_attribution: v_license: callout_text: - t_headline: Overstocking t_text: On the other end of the spectrum, keeping too much inventory on-hand will lead to inflated storage costs. However, many businesses make this mistake as an effort to prevent stockouts.

In reality, storing too many products can clutter maintenance rooms, making it hard to navigate and locate certain materials. When supplies can't be found, managers may have to order more, knowing they already have some on-hand.

To avoid this, companies should keep an organized storage room with accurate records of what products are on-site to avoid overordering. p_headline_type: h3 image: i_image: t_description: v_attribution: v_license: callout_text: - t_headline: Decreased Productivity t_text: Aside from stockout events, poor MRO inventory management can affect daily operations. Studies show that technicians spend up to 25% of their time finding parts. Although this may only extend downtime by minutes, any recurrence will significantly decrease productivity.

Maintenance workers can prevent this by keeping their own separate inventory log that outlines where tools and materials are for easy retrieval. p_headline_type: h3 image: i_image: decreased-productivity-1609347716-5952.png t_description: //pixabay.com/photos/russia-office-men-women-working-95311/ v_attribution: //pixabay.com/photos/russia-office-men-women-working-95311/ v_license: Creative Commons Zero callout_text: - t_headline: 5 Best MRO Inventory Management Practices t_text: Companies can prevent problems stemmed from poor MRO inventory management by considering the best control practices- p_headline_type: h2 image: i_image: t_description: v_attribution: v_license: callout_text: - t_headline: Establish MRO Management KPIs t_text: Organizations can efficiently monitor their MRO inventory by establishing measurable benchmarks or key performance indicators (KPIs). KPIs quantify various performance elements so managers can determine when they need to intervene.

While companies can establish as many KPIs as they deem necessary, all businesses should monitor-

p_headline_type: h3 image: i_image: t_description: v_attribution: v_license: callout_text: - t_headline: Train Staff on MRO Sourcing and Supply Chain Management t_text: An MRO management system is only as effective as the employees that run it. Therefore, companies must prioritize training staff on how to source MRO materials and manage the supply chain.

Training should cover how to procure stock and interact with employees from different departments. This establishes a healthy, harmonious work environment where workers understand their roles. As issues arise or more training is needed, supervisors can hold special workshops. p_headline_type: h3 image: i_image: train-staff-on-mro-sourcing-and-supply-chain-management-1609347716-7305.png t_description: //pixabay.com/photos/computer-pc-workplace-home-office-1185626/ v_attribution: //pixabay.com/photos/computer-pc-workplace-home-office-1185626/ v_license: Creative Commons Zero callout_text: - t_headline: Locate MRO Inventory Centrally t_text: Departments that operate independently tend to duplicate purchase orders, resulting in excess stock and procurement costs. By keeping inventory records in a centralized location, companies can improve their MRO inventory control and efficiency. p_headline_type: h3 image: i_image: t_description: v_attribution: v_license: callout_text: - t_headline: Implement Management Systems t_text: Businesses can optimize their internal communication and data exchange by implementing inventory management and ordering systems. These solutions automate standard stock tasks, such as cycle counts and procurement, ensuring organizations maintain minimum products on-site.

The software also establishes a centralized interface, where employees throughout the company can access inventory data. Advanced ordering solutions even connect businesses to their vendors for easy procurement. This functionality extends visibility into the supply chain and enables managers to supervise suppliers' performance. p_headline_type: h3 image: i_image: implement-management-systems-1609347716-2387.png t_description: //pixabay.com/photos/programming-computer-environment-1857236/ v_attribution: //pixabay.com/photos/programming-computer-environment-1857236/ v_license: Creative Commons Zero callout_text: - t_headline: Consider Utilizing Vendor-Managed Stock Services t_text: Some businesses do not have enough employees to dedicate to stock management and procurement, while others prefer leaving it in the hands of firms that specialize in that department. Either way, organizations can use third-party services to enhance their MRO supply management.

By leaving this process to businesses with expertise, companies may experience heightened productivity and operational efficiency. p_headline_type: h3 image: i_image: t_description: v_attribution: v_license: callout_text: event_body: json-ld_event: t_name: Employee Scheduling for Restaurant Managers t_description: Attendees will learn how create excellent schedules. The class teaches managers how to estimate the number of employees they need to staff their locations; how to accurately forecast their customer demand; how to quickly and accuaratly write and communicate schedules to employees; and how to evaluate the accuracy and optimization of their schedules to make adjustments. v_start_date: 2022-08-08 i_image: p_location_name: Altametrics Online Webinar Course p_address: webinar.altametrics.com?site=altametrics v_price: 10.00 t_offer_description: Priority Registration v_registration_url: webinar.altametrics.com?site=altametrics ---