10 June 2024

An image of people using a tablet with MRO written on it inside a warehouse

Do you know everything about MRO Inventory Management?

Maintenance, Repair, and Operations (MRO) inventory consists of essential items that support the manufacturing process but aren’t directly part of any bill of materials. Proper management of MRO inventory is crucial to avoid work stoppages and ensure timely deliveries.


Table of Contents

  1. What is MRO Inventory?
  2. Examples of MRO Inventory
  3. Importance of MRO Inventory Management
  4. Eight Steps for Effective MRO Inventory Management
  5. KPIs for MRO Inventory
  6. Enhancing MRO Management with Software
  7. Key Takeaways
  8. FAQs

What is MRO Inventory?

MRO (Maintenance, Repair, and Operations) inventory includes various items necessary for manufacturing operations but not directly used in the production line. These items support the production process by ensuring safety, maintaining machinery, and keeping the work environment in optimal condition. Effective MRO inventory management prevents costly disruptions due to stockouts.

MRO inventory encompasses a broad range of items crucial for the smooth operation of manufacturing processes. Unlike raw materials or components that form part of the final product, MRO items indirectly support production. This category includes spare parts, consumables, personal protective equipment (PPE), cleaning supplies, office supplies, facility maintenance items, and fluids and chemicals. Proper management of these items ensures operational efficiency and safety, preventing interruptions in the production process.


Examples of MRO Inventory

  • Spare Parts: Critical components such as bearings, motors, and pumps that replace faulty machinery parts. These items are essential for minimising downtime and ensuring uninterrupted production. For instance, a conveyor belt system may require spare belts and rollers to be kept in stock.
  • Consumables: Items like fasteners, lubricants, adhesives, and filters that need regular replenishment. Consumables are used up during the manufacturing process and require frequent restocking. Examples include screws, bolts, machine oil, and air filters.
  • Personal Protective Equipment (PPE): Safety gear including helmets, gloves, masks, and protective clothing. PPE is vital for worker safety and compliance with health and safety regulations. Common items include high-visibility vests, earplugs, and safety goggles.
  • Cleaning Supplies: Detergents, disinfectants, and cleaning tools for maintaining a clean work environment. Cleanliness in a manufacturing facility is critical for both safety and efficiency. Cleaning supplies might include industrial cleaners, sanitizers, and mops.
  • Office Supplies: Administrative necessities like paper, pens, and printer cartridges. While these items are not directly involved in production, they are essential for the smooth operation of office tasks within the facility.
  • Facility Maintenance Items: Essentials like light bulbs, batteries, safety signage, and HVAC filters. Maintaining the facility infrastructure is crucial for operational continuity. Items in this category ensure that the physical environment remains conducive to production activities.
  • Fluids and Chemicals: Coolants, solvents, lubricants, and hydraulic fluids used in various processes. These substances are necessary for machinery operation and maintenance. For example, coolants are used to prevent machinery overheating, while solvents are used for cleaning parts.
  • Packaging Materials: Items such as cardboard boxes, pallets, and cling film for product packaging and handling. Packaging materials may also be considered MRO inventory as they are essential for the final stages of production and distribution.

Importance of MRO Inventory Management

Efficient MRO inventory management is vital for several reasons:

  • Preventing Downtime: Ensures availability of critical items, reducing the risk of halting production. Downtime due to the lack of necessary MRO items can be costly and disruptive, impacting production schedules and customer satisfaction.
  • Optimising Procurement: Strategic procurement practices minimise costs and streamline supply chains. By forecasting demand and negotiating with suppliers, businesses can achieve better pricing and reduce lead times.
  • Reducing Inventory Costs: Controls stock levels to avoid overstocking, reducing storage and handling costs. Overstocking ties up capital and increases the risk of obsolescence, whereas understocking can lead to operational delays.
  • Supporting Production: Maintains smooth operations by ensuring machinery and facilities are well-maintained. Regular maintenance supported by adequate MRO inventory ensures that equipment runs efficiently and with minimal risk of failure.
  • Increasing Profitability: Minimises breakdowns, optimises maintenance schedules, and reduces unnecessary expenses. Efficient MRO management contributes to the overall profitability by enhancing operational efficiency and reducing waste.
  • Tailoring for Small Businesses: Small businesses can benefit significantly from streamlined MRO management due to limited resources and storage space. Effective MRO practices can help small businesses maximise their operational efficiency and competitiveness.
  • Facilitating Maintenance: Ensures availability of supplies necessary for preventive maintenance activities. Preventive maintenance is critical for avoiding unexpected breakdowns and extending the lifespan of equipment.

In summary, effective MRO inventory management is essential for minimising downtime, controlling costs, supporting production processes, and ultimately increasing profitability, making it a critical aspect of business operations in the manufacturing industry.


Eight Steps for Effective MRO Inventory Management

  1. Identify MRO Items: Categorise items based on usage, criticality, and impact on operations. Clearly defining what constitutes MRO inventory helps in organising and managing these items more effectively.
  2. Forecast Demand: Use historical data, maintenance schedules, and anticipated needs to predict demand. Accurate demand forecasting helps in planning procurement and stocking levels, ensuring that necessary items are always available.
  3. Plan for Replenishments: Determine optimal reorder intervals and set reorder points for consistent replenishment. Planning for replenishments involves establishing a balance between having enough stock to meet demand and avoiding excess inventory.
  4. Establish Safety Stock Levels: Define safety stock for critical items to prevent stockouts. Safety stock acts as a buffer against unexpected increases in demand or delays in supply, ensuring that critical MRO items are always available.
  5. Manage Suppliers: Build relationships with reliable suppliers and streamline procurement processes. Effective supplier management involves negotiating favourable terms, ensuring timely deliveries, and maintaining good communication with suppliers.
  6. Organise Inventory: Designate storage areas for easy access and proper labelling. Organised storage helps in quickly locating MRO items, reducing the time spent searching for supplies and preventing stockouts due to misplaced items.
  7. Track Inventory: Implement barcode systems or inventory management software for efficient tracking. Modern inventory management systems provide real-time data on stock levels, usage patterns, and procurement needs, helping in better decision-making.
  8. Review Regularly: Regularly assess inventory levels, usage patterns, and procurement processes for continuous improvement. Periodic reviews help in identifying areas for improvement, adjusting inventory levels, and optimising procurement strategies.

By following these basic steps, organisations can establish effective MRO inventory management practices to support maintenance activities, minimise downtime, and ensure the smooth operation of machinery and facilities.


KPIs for MRO Inventory

Tracking key performance indicators helps assess the effectiveness of MRO inventory management:

  • Stockout Rate: Percentage of time critical items are unavailable. This KPI indicates the effectiveness of inventory management in preventing stockouts and minimising downtime.
  • Inventory Turnover: Frequency of inventory replenishment within a period. A high turnover rate indicates efficient inventory management, whereas a low turnover rate may suggest overstocking or slow-moving inventory.
  • Carrying Costs: Total costs of holding and managing inventory. This includes storage, handling, and obsolescence costs, and indicates the efficiency of inventory management in minimising unnecessary expenses.
  • Supplier Performance: Metrics on delivery times, quality, and reliability. Evaluating supplier performance helps in ensuring that MRO items are sourced reliably and on time.
  • Forecast Accuracy: Discrepancy between forecasted and actual demand. Accurate demand forecasting is crucial for effective MRO management, and this KPI helps in assessing and improving forecasting methods.

By tracking these MRO-related KPIs, manufacturers can gain insights into the effectiveness of their inventory management processes, identify areas for optimisation, and make informed decisions to improve operational efficiency and minimise costs.


Enhancing MRO Management with Software

Utilising inventory management software, such as Brytebuild, can significantly enhance MRO inventory control:

  • Clear Classification: Properly classify MRO items within the software. This distinction ensures MRO items are accounted for in procurement and invoicing processes without being tracked as regular inventory.
  • Streamlined Procurement: Use software to create purchase orders and manage procurement processes. Streamlined procurement processes reduce administrative workload and ensure timely acquisition of necessary MRO supplies.
  • Cost Tracking: Track expenses and vendor payments for accurate cost management. Inventory management software provides tools to monitor and analyse costs associated with MRO items, contributing to financial visibility and control.
  • Integration with Production: Synchronise data across procurement, finance, and operations. Integrating inventory management with production planning ensures seamless communication and coordination between different business processes.
  • Real-Time Reporting: Monitor key metrics and KPIs to make informed decisions. Real-time reporting and analytics tools help in tracking procurement lead times, vendor performance, and spending trends, enabling better decision-making.
  • Vendor-Managed Inventory (VMI): Collaborate with suppliers for timely stock replenishment. VMI programs allow suppliers to monitor MRO inventory levels and replenish stock as needed, reducing administrative burden and ensuring consistent supply.

With Brytebuild’s comprehensive warehouse management system, you can streamline your MRO inventory management processes, ensuring you have the right items at the right time. From barcoding systems with QR code scanning to inventory tracking and live stock quantity updates, Brytebuild provides the tools necessary for efficient MRO management.

Additionally, Brytebuild’s 3D warehouse viewer allows you to live locate any items and design your warehouse layout effectively, enhancing operational efficiency. The scheduling system enables you to plan and assign jobs seamlessly, ensuring all maintenance and operational tasks are performed on time.

By effectively leveraging inventory management software like Brytebuild, manufacturers can streamline procurement processes, track costs accurately, and ensure the availability of essential supplies for maintenance activities without the complexities of traditional inventory management.


Key Takeaways

  • MRO Inventory: Includes items like spare parts, consumables, PPE, and cleaning supplies essential for manufacturing.
  • Management Importance: Prevents downtime, reduces costs, supports production, and enhances profitability.
  • Management Steps: Identification, demand forecasting, replenishment planning, safety stock levels, supplier management, organisation, tracking, and regular review.
  • KPIs: Track stockout rate, inventory turnover, carrying costs, supplier performance, and forecast accuracy.
  • Software Utilisation: Enhances MRO management with efficient tracking, procurement, cost management, and real-time reporting.

FAQs

What does MRO stand for?
MRO stands for Maintenance, Repair, and Operations.

How can small businesses manage MRO inventory effectively?
By prioritising critical items, using efficient procurement practices, optimising storage, and leveraging tailored inventory management software.

How to determine reorder points and safety stocks manually?
Analyse historical usage, consider procurement lead times, assess item criticality, and establish buffer stock levels based on risk tolerance and demand variability.

Man inside a warehouse on his tablet performing a stock control

Stock Control: Guide to Optimising Inventory Management

In the fast-paced world of manufacturing, maintaining optimal stock levels is a delicate balancing act. Effective stock control is vital for ensuring smooth operations, minimising costs, and maximising profitability. This guide provides a comprehensive overview of stock control, its benefits, and how to implement it effectively using Brytebuild’s advanced Warehouse Management System (WMS).

The Double-Edged Sword of Stock Levels

Manufacturers face a constant challenge when it comes to managing stock levels. On one hand, keeping a high volume of parts and products in stock reduces the risk of production delays and the need for costly emergency supplies. On the other hand, excessive stock ties up finances and consumes valuable warehouse space, leading to increased costs. The key is to strike a balance between having enough stock to meet production and customer demands while minimising the costs associated with holding stock.

What is Stock Control?

Stock control, also known as inventory control, involves maintaining the optimal levels of stock to ensure production runs smoothly and customer demands are met, all while minimising the cost of holding stock. This process is crucial for manufacturers of all sizes. Larger businesses may invest in specialised software to streamline stock control, while smaller enterprises often rely on internal systems such as spreadsheets. However, as businesses grow, these manual systems often prove inadequate, necessitating a more efficient solution.

The Limitations of Spreadsheets

While spreadsheets like Microsoft Excel are popular for stock management in smaller businesses, they have significant limitations:

  • Accessibility Issues: Data is often localised, making it difficult to access across different devices.
  • Human Error: Manual data entry is prone to mistakes, leading to inaccurate stock levels.
  • Labour-Intensive: Managing stock with spreadsheets is time-consuming and detracts from other productive activities.

Brytebuild’s Warehouse Management System (WMS) offers a comprehensive solution that provides real-time stock visibility, minimises errors, and automates many stock control processes.

Benefits of Using Stock Control Systems

Stock control systems, such as those offered by Brytebuild, provide numerous advantages:

  1. Improved Cash Flow Excessive stock levels tie up capital that could be used more effectively elsewhere. By avoiding overstocking, businesses can free up cash flow, allowing for investment in new opportunities and technologies. This financial flexibility can be crucial for staying competitive and responsive to market changes.
  2. Fresh Stock Holding too much stock can lead to items becoming outdated or obsolete. Effective stock control ensures that you only stock what you need for the foreseeable future, keeping your inventory fresh and relevant. This is particularly important in industries where technology and market demands evolve rapidly.
  3. Enhanced Product Offering With intuitive stock control software, businesses can analyse product performance and make informed decisions about their inventory. This intelligence helps in optimising the product range, focusing on high-performing items, and discontinuing underperforming ones, ultimately driving sales and customer satisfaction.
  4. Accurate Stock Monitoring Across Multiple Locations For businesses operating across multiple locations, tracking stock levels can be challenging. Brytebuild’s WMS provides a centralised view of stock across all sites, facilitating efficient stock transfers and ensuring all locations have the necessary inventory to operate smoothly.
  5. More Accurate Stock Checking Automated stock control systems reduce the reliance on manual data entry, minimising errors and ensuring accurate stock levels. This accuracy is crucial for planning and fulfilling customer orders efficiently.

Implementing Effective Stock Control with Brytebuild

Brytebuild’s WMS is designed to enhance stock control through several key features:

  1. Real-Time Inventory Tracking Utilising QR codes, Brytebuild’s WMS tracks stock in real-time, providing an up-to-date overview of inventory levels. This functionality helps in reducing errors and ensuring accurate stock management.
  2. Comprehensive Warehouse Management The system handles purchase orders, delivery orders, picking, and packing seamlessly. This integration streamlines warehouse operations and improves overall efficiency.
  3. 3D Warehouse Viewer Brytebuild’s 3D warehouse viewer allows businesses to visualise and design their warehouse layout, optimising space utilisation and facilitating quick location of items.
  4. Advanced Scheduling and Staffing The scheduling system enables businesses to plan and assign tasks effectively, ensuring that stock takes and other critical activities are completed on time.
  5. Issue Reporting and Resolution The system’s issue tracking feature allows for prompt reporting and resolution of problems, maintaining smooth operations and reducing downtime.
  6. Detailed Reporting and Analytics Brytebuild’s WMS offers advanced reporting tools that provide insights into stock levels, trends, and performance. These analytics help businesses make informed decisions about inventory management and production planning.
  7. Production History Tracking The system keeps a detailed record of production activities, providing visibility into job statuses and helping managers monitor progress and identify bottlenecks.

Best Practices for Stock Control

To maximise the benefits of Brytebuild’s WMS, manufacturers should follow these best practices:

  1. Conduct Regular Audits Regular stock audits, in addition to annual checks, help maintain accuracy and identify discrepancies early.
  2. Train Staff Thoroughly Ensure that all employees are well-trained in using the WMS and understand its capabilities and benefits.
  3. Automate Processes Utilise the automation features of Brytebuild’s WMS to reduce manual work and improve efficiency.
  4. Monitor Stock Trends Use the reporting tools to track stock trends and make proactive decisions about inventory levels and product offerings.
  5. Set Reorder Levels Establish minimum stock levels in the system to trigger automatic reorders, preventing stockouts and ensuring continuous production.
  6. Integrate Systems Integrate Brytebuild’s WMS with other business systems, such as ERP, to ensure seamless data flow and comprehensive management.

Conclusion

Effective stock control is critical for manufacturing businesses to operate efficiently and profitably. By implementing a robust stock control system like Brytebuild’s WMS, manufacturers can achieve better cash flow, maintain fresh stock, enhance their product offerings, and ensure accurate stock monitoring across multiple locations. The result is a more agile, responsive, and competitive business.

Improve your stock control practices with brytebuild

Ready to transform your stock control practices? Experience the comprehensive capabilities of Brytebuild’s Warehouse Management System. Request a demo today and discover how our solution can streamline your operations and boost productivity. Visit Brytebuild to learn more.

People inside a warehouse on a tablet taking stock

Taking Stock: How to Improve Stock Control with Brytebuild

Effective stock control is a cornerstone of successful manufacturing. Without a reliable system in place, businesses risk inefficiencies, lost sales, and wasted resources. This guide will explore common stock control pitfalls and how Brytebuild’s advanced Warehouse Management System (WMS) can help overcome them.

The Importance of Effective Stock Control

Stock control is crucial for keeping manufacturing operations running smoothly. Whether it’s raw materials or finished products, stock is the lifeblood of your business. Knowing your stock levels is as essential as knowing how many employees are on your payroll. If your current stock control system is falling short, it’s time to reconsider your approach.

The Drawbacks of Spreadsheet Systems

Spreadsheets, like Microsoft Excel, are still widely used for stock control. However, they are often inadequate for several reasons:

  • Accessibility Issues: Data in spreadsheets is localised, making it difficult to access across different devices.
  • Human Error: Manual data entry is prone to mistakes, leading to inaccurate stock levels.
  • Labour-Intensive: Managing stock with spreadsheets is time-consuming and detracts from other productive activities.

Brytebuild offers a comprehensive solution with its WMS package. Transitioning from spreadsheets to an integrated system may seem daunting, but the benefits far outweigh the initial effort. Brytebuild’s system provides a real-time overview of your stock, making it easier to manage and report stock levels accurately.

Identifying Stock Issues Early

An ineffective stock control system can leave you unaware of surplus stock. This often happens in overcrowded warehouses where less successful products remain hidden. By implementing Brytebuild’s intelligent stock control system, you can:

  • Spot High Stock Levels: Identify unusually high stock levels early and address the underlying causes, such as decreased demand.
  • Make Informed Decisions: Use detailed insights to make better decisions about stock management and future production.

Brytebuild’s inventory tracking system uses QR codes to monitor stock in real-time, ensuring you never lose sight of your assets.

Enhancing Customer Satisfaction

Running out of stock can halt manufacturing processes and lead to dissatisfied customers. Without an effective system, stock levels become a guessing game. Brytebuild’s WMS ensures you always have a clear view of both current and future stock requirements, allowing you to maintain optimal levels and meet customer demand consistently.

Streamlining Annual Stock Checks

Annual stock checks are necessary but can be time-consuming and disruptive. During these checks, production might be slowed or halted, impacting profitability. Brytebuild simplifies this process by:

  • Reducing Time: Streamlining stock takes and audits, allowing you to complete checks faster.
  • Minimising Disruption: Enabling ongoing productivity during stock checks with its scheduling and tracking features.

With Brytebuild, you can perform thorough stock checks efficiently, freeing up resources for more critical tasks.

How Brytebuild WMS Improves Stock Control

Brytebuild’s Warehouse Management System is designed to enhance every aspect of stock control:

  1. Comprehensive Inventory Management: Track all stock in real-time with QR code scanning and printing.
  2. Efficient Warehouse Operations: Manage purchase orders, delivery orders, picking, and packing seamlessly.
  3. 3D Warehouse Viewer: Visualise and design your warehouse layout to optimise space and locate items quickly.
  4. Scheduling and Staffing: Schedule jobs, assign tasks to individuals or groups, and track progress with custom permissions.
  5. Issue Resolution: Report and resolve issues promptly to maintain smooth operations.
  6. Advanced Reporting: Access detailed statistics to track and understand business performance.
  7. Production History: Monitor production activities and job statuses for better oversight.

Tips for Improving Stock Control with Brytebuild

To maximise the benefits of Brytebuild’s WMS, consider the following best practices:

  1. Regular Audits: Perform regular, smaller stock audits in addition to annual checks to maintain accuracy.
  2. Training: Ensure all staff are properly trained in using the WMS and understand its capabilities.
  3. Automate Where Possible: Use Brytebuild’s automation features to reduce manual work and improve efficiency.
  4. Monitor Trends: Use the system’s reporting tools to track stock trends and make informed decisions about future stock needs.
  5. Integrate Systems: Integrate Brytebuild with other systems like your ERP to ensure seamless data flow and better overall management.
  6. Set Reorder Levels: Establish minimum stock levels in the system to trigger automatic reorders and prevent stockouts.

Benefits of Using Brytebuild’s WMS

  • Accuracy: Reduce errors with automated data entry and real-time tracking.
  • Efficiency: Save time with streamlined processes and easy access to stock information.
  • Visibility: Gain a comprehensive view of your stock across multiple locations.
  • Flexibility: Adapt quickly to changing demands with a dynamic and scalable system.
  • Compliance: Maintain accurate records and ensure compliance with industry standards.

Contact us to have Brytebuild improve your stock control

Ready to revolutionise your stock control? Experience the benefits of Brytebuild’s Warehouse Management System firsthand. Request a demo today and see how our solution can streamline your operations and enhance productivity. Visit Brytebuild to learn more.

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