What are the benefits of automation in MRO Operations Management and Inventory? Discover them in this article.
The acronym MRO (Maintenance, Repair, and Operations) includes all activities aimed at ensuring the maintenance, repair, and proper functioning of equipment, machinery, and resources typically used within company’s production processes.
Traditional MRO Inventory Management
Managing MRO spare parts and materials plays a critical strategic role because, in addition to impacting company finances, it heavily influences production performance. But what are the main challenges related to MRO warehouse management?
- Excess inventory: To ensure operational continuity, it is often preferable to maintain a high inventory level, which, however, results in significant capital immobilization and limits other investments. Additionally, purchasing an excessive number of spare parts increases the risk of obsolescence, potentially leaving the company with outdated parts when needed.
- Out-of-stock: A lack of spare parts forces the company to halt production and make last-minute purchases, with higher costs to obtain the necessary materials as quickly as possible. Even after receiving the spare parts, however, it may take days or even weeks to repair the issue, causing continued losses due to machine downtime. This can lead to lost sales, customer dissatisfaction, claims for damages, and substantial reputational damage.
- Storage and handling costs: MRO materials, like any other type of company material, occupy physical space and need to be properly stored, protected from unauthorized access, and carefully handled to avoid loss or damage, with all the associated risks.
The benefits of automation in MRO operations management and inventory
In today’s complex and competitive environment, characterized by disruptive events, high demand volatility, increasing supply risks, and logistical-productive bottlenecks, managing MRO inventory requires advanced tools. These tools enable companies to optimize the procurement and distribution process of these materials, given their enormous strategic value for business continuity.
ICAM’s multi-column vertical automated warehouses for safe, accurate, and efficient MRO material management
Considering the stakes, adopting technologies and systems that make MRO process logistics management more efficient and accurate is essential. ICAM’s SILO multi-column vertical automated warehouses not only maximize available floor space but also ensure all stored MRO items are always secure and under control thanks to the integration of the ICON management software with the most popular ERP and WMS systems. Computerized management, along with optional features like barcode and QR code readers, ensures complete traceability of every picking and refilling operation and real-time inventory monitoring.
The multi-column vertical warehouse for every need
The multi-column vertical warehouse is suitable for managing items of various types, sizes, and weights. SILO² is the solution when heavy items such as pumps, motors, valves, equipment, and mechanical spare parts need to be managed. The custom vertical warehouse offers maximum application versatility and appropriate load capacity for real-world requirements. The same vertical warehouse is suitable for managing lightweight items such as consumables, cleaning products, workwear, IT devices, etc. This is an automatic warehouse for high-frequency storage and picking of light loads.
The collaborative evolution of MRO Inventory Management
In the current market scenario, there is an increasing need to manage MRO (Maintenance, Repair, and Operating) material reordering and handling processes more quickly and dynamically. Collaboration is a key factor in achieving this.
New management approaches based on Collaborative Replenishment, such as Consignment Stock, where the supplier manages goods on consignment, and Vendor Managed Inventory (VMI), where the supplier takes full responsibility for inventory control, planning, and management, including the risk of out-of-stock, can significantly improve business efficiency.
SafeBox, the self-service solution enabling collaborative MRO Inventory Management
So when the goals is to evolve MRO inventory management in a collaborative way, the ideal solution is SafeBox. By interfacing via API with popular ERP, WMS, e-procurement platforms, suppliers, and couriers, it enables Supply Chain Collaboration: real-time sharing of material consumption and average stock data allows suppliers to directly manage customer stock, facilitating more timely and accurate replenishments.
SafeBox enables the automation and intermediation of the entire process of storage, distribution, and replenishment of MRO materials, including Personal Protective Equipment (PPE), whose absence poses a serious risk, particularly in the current historical period. The ability to install one or more access points outside the company building allows authorized suppliers to replenish PPE independently, even outside business hours.
Additionally, computerized management of data records (employees, roles, PPE) ensures the correct allocation of PPE to each operator, who can withdraw and/or return them independently, without needing a dedicated operator for this activity. This results in unprecedented operational continuity and efficiency.
