3 Methods Of Optimizing MRO Inventory To Benefit Your Business

Inventory management can be an expensive and disheartening task for many business owners. The goal of MRO optimization is getting the right product to the exact location with as little expense and effort as possible. This can be a tricky assignment, particularly for MO or Maintenance repair and processes which are the services and goods that keep the business operational. Such products would include things like lighting fixtures, repair components, safety supplies, janitorial products, lubricants, and other consumables that are not causally linked to the primary products. In many businesses, MRO inventory makes up a substantial amount of the businesses’ annual procurement budget, however it is still not overseen with the sense of thoroughness typically suited for production inventory application. Investing some time and effort into managing MRO inventory efficiently can result in savings and cost reductions. Here are three best practices to take into account when you are developing a plan to manage MRO inventory.

  • A fundamental location for MRO inventory

The initial step is to pinpoint a central location for MRO inventory. Storing your MRO supplies in a principal location per facility as opposed to having various unidentified locations will enhance overall efficiency. Besides this, it is vital to use a computer system to track, manage and regulate inventory. Using transaction costs and data usage can assist a company with right-sizing their MRO inventory in concurrence with the supply chain performance criterions.

Stock inventory

  • VMI (Vendor management inventory)

VMI is a strategy where the supplier is onsite regulating the MRO inventory. This would enable the employees to focus on their primary functions, with the assurance that MRO inventory is appropriately managed by the supplier. This can provide additional savings since the supplier will have better discernibility of downstream demand and might even offer extra volume discounts. The VMI approach can result in less paperwork and transactions for the customer since the customer is only paying for the material used. The invoicing process can be timetabled on a weekly or monthly basis to simplify the payable process for reducing the overall transaction fees. 

  • Essential performance pointers

When it comes to the management of any operation, KPIs (key performance indicators) must be determined in order to measure essential factors like costs, savings, and desuetude in an MRO development. It is vital to measure how efficient the company MRO inventory management is for upper management can better understand the progress and to see the advantages. A few tactics to take into consideration may include:

  • Number of stock out occurrences
  • On-hand inventory (days or months)
  • The quotient of rush orders to replacement orders

Such measure must be followed and posted to ensure the employees responsible can view their performance and can act to enhance performance where needed.


By using these three tactics for managing MRO inventory for the business can help with reducing costs and result in more advanced efficiency. Many companies are presently expensing MRO supplies at the time of purchasing, which means they are responsible for what they buy and not typically for what is used. The actual consumption of the MRO materials is generally less than the expected demand, meaning that agencies are spending more than what is necessary on MRO supplies. Ultimately, the implementation of an efficient MRO inventory management system is worth the investment. 


Lynne Huysamen

Mommy to a pigeon pair, blogger and online marketer. Lover of chocolate, good books and buckets of coffee.

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