An inflated MRO inventory is an opportunity for cost reductions in most energy and manufacturing organizations. And, it is not a one-time event. Inventory must be re-evaluated periodically to ensure that it is reduced appropriately following: mergers with, or acquisitions of, companies with similar or identical equipment (stocks can be consolidated and reduced because the same MRO parts may support multiple pieces of equipment); changes in technology (newly available parts from either the original manufacturer or an aftermarket supplier may, for instance, extend MTBF); and changes in corporate strategy may alter the importance of specific equipment and its products to the bottom line, (altering the risk factors used to optimize the capital investment in parts).
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