Downtime is expensive. Any time your customer’s operations must stop due to faulty equipment, routine maintenance, or missing parts and supplies, it can result in thousands of dollars in lost revenue. Associated costs of an operational shutdown go beyond production alone and can include:
- Increased labor hours
- Service and repair costs
- Decreased customer confidence
- Increased carrying costs
Your customer’s ability to respond to downtime is directly linked to the success of their maintenance and repair operations (MRO) program. Machines or equipment prone to breakdowns require available inventory and regular maintenance for smooth and efficient operations. The key is knowing where downtime on machines and processes is likely to occur and having the necessary repair items they require such as lubricants, gaskets, O-rings, and valves. These commonly used MRO items are essential to timely repairs and machine uptime. But not having those parts in stock makes the job impossible — leading to production shutdowns and potential customer attrition.
In addition to the parts and supplies needed to maintain and repair tools and machinery, MRO supplies can also include a variety of products necessary for daily operation including:
- Safety equipment
- Personal protective equipment
- Cutting tools
- Power tools
- Janitorial supplies
- Consumables (abrasives, drill bits, etc.)
Download A Distributor’s Guide to Best Practices in Vending Inventory Control Here.
Common Problems Facility Managers Face with Traditional MRO Inventory
With regard to MRO supplies, your customer’s production manager, purchasing department or even administrative personnel are not only responsible for ordering inventory, but also monitoring and tracking inventory usage. Whether the inventory is stored in a stockroom or a warehouse, effectively managing the availability of these items can be challenging and costly. Managing inventory supplies the traditional way requires customers to spend substantial time and money keeping mission critical items in stock. Some are even required to employ expensive stock personnel to manage these supplies. Aside from costs, the most common downfalls associated with traditional inventory control methods include:
- Ineffective Tracking of MRO Items
Traditional inventory management often relies on the honor system, making it impossible to know where each inventory item is at any given time or how it is being used. This often leads to overordering, spot buys and missing inventory. - Long Lead Times to Resupply MRO Items
Without effective inventory control, it can be challenging to keep essential items on the shelves. Having to procure last minute items often results in higher purchasing costs, production shortages, increased lead times and shipment delays. - Lost Time Spent Searching for Items
Not only does inefficient inventory management affect purchasing, it can have a negative impact on employee productivity. When a worker must search for the tools and operational supplies they need, it slows them down. The more time spent looking for tools means less time in production.
Distributors Can Drive Customer Profits through Industrial Vending
Customers often struggle with sourcing all of their MRO items economically and ask the question “How can I keep track of my inventory, decrease downtime and make a profit?” Because MRO items run the gamut from safety equipment to cleaning supplies, it can be challenging to keep track of the availability of all of these items. Distributors can help customers control inventory and save money on these MRO supplies with vending. In fact, customers not only spend less money due to fewer unplanned purchases, but through improved employee accountability they can also reduce inventory consumption 30% or more.
Inventory control software that can monitor and track inventory usage of high-turn consumables or high-value returnable items reduces the burden on your customer’s internal staff, allowing them to focus on more profitable tasks. Industrial vending and inventory control software can help customers:
- Track availability of items
- Improve employee accountability
- Achieve better organization
- Improve production flow
- Minimize downtime
- Save money on inventory consumption
Distributors can leverage value-added services like inventory control software and vending to help their customers improve production and profitability in their organizations. In addition to increasing customer stickiness, distributor representatives can spend less time creating quotes, writing orders and sourcing last minute items, freeing them up to develop new business. To learn more about 1sourcevend’s inventory control software and industrial vending solutions, request a free demo today.