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Friday, October 9, 2020

MRO Optimization


 

**This is a sponsored post which I will be compensated for**

 MRO Optimization is a necessity for optimal business agility and financial performance, yet inventory data is often unreliable. Disorganized, disparate, and inaccessible data has many causes and results in increased supply chain costs. Bad data also leads to inaccurate and unpredictable inventory forecasts that result in an ever-growing inventory of obsolete, slow-moving or overstocked items. Perhaps more importantly, lack of parts and resulting manufacturing downtime can jeopardize product deliveries and customer relationships and ultimately result in loss of revenue.


I know during this pandemic I go into some stores and the shelves are empty so that must mean that the demand is up or possible the store did not do the proper mro inventory solutions which is a must for businesses as you can make so much more money if you have the proper inventory in stock instead of bare shelves.

But there are other times when you have to much capital that can be just sitting there not being used and did you know that manufactures has anywhere from $40-$60 million in wasted working capital tied up in excess parts. For enterprises that rely on data to propel their inventory management and other supply chain initiatives, bad data can be especially damaging to the bottom line. You really need to have someone to be able to handle all your needs to keep your company making profits and not hanging on to excessive capital and mro inventory solutions is part of that process.



The very data backbones of enterprises are their ERP systems and that is where you’re business struggles and often the chief offenders when it comes to bad data. ERPs create confusion as numerous employees enter data and extract information from centralized sources or custom modules, and this personalized use of the various ERP modules results in different understandings of the platform. For example, the procurement function will use ERP data much differently than plant maintenance staff.

Also, for many businesses or organizations, their ERPs are licensed and stored on-premise, disconnecting them from system upgrades and the ability to leverage the latest technological advancements. Especially in cases where companies grow through acquisition, legacy systems like ERPs continue to pile on top of each other, adding to the disparate data.

While the efficiency of inventory data management is a product of the defined capabilities of a given ERP system, the human factor plays heavily starting with data input. For example, many material masters in ERPs provide character-limited free text fields for material descriptions. Without clear data management practices or a system that appropriately guides the user, employees often input the new materials data they value without considering how other colleagues, divisions or facilities reference and search for that same item. In addition, searching for material availability is difficult because ERPs require strict syntax and can be thrown off by typing errors or naming conventions. Either issue can result in costly and inaccurate inventory visibility that threatens supply chain efficiency.

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