Are your customers tired of spending too much money every month on high inventory costs? The problem could be ineffective management of maintenance, repair and operating supply (MRO). MRO supplies are heavily used in the production process, but they are often overlooked when managing inventory.
Since MRO items are rarely accounted for in a company’s enterprise resource planning (ERP) system, the door is left open for mismanaged spend or waste.
How often do you track these mission-critical supplies for your customers?
- Safety equipment
- Personal protective equipment (PPE)
- Valves, compressors, pumps, motors
- Janitorial and sanitation supplies
- Plant maintenance supplies (lubricants, gaskets, repair tools)
- Office supplies
MRO inventory mismanagement has a direct impact on production fulfillment and internal business processes — costing businesses thousands in:
- Unplanned downtime
- Lower production rates
- Extended supply lead times
- High inventory costs
- Decreased customer satisfaction
- Inflated carrying costs
- Spare parts waste
Your customers’ storerooms are their central hub for business. Parts, supplies and tool availability are critical to maintenance operations. Without it, production delays and expensive spot buys are inevitable.
Instead of relying on the honor system for MRO supply management, distributors can take advantage of supply sourcing strategies that delight their customers and save time on the back end. Lean management practices like 5S and industrial vending can help by managing inventory waste and stockouts, positioning the distributor to better serve their customers’ supply needs.
Curious if vending can help your business? Download A Distributor’s Guide to Best Practices in Vending & Inventory Control.
5S Inventory Management Best Practices for Better MRO Storerooms
What is 5S?
Distributors may benefit from encouraging their customers to consider implementing the 5S methodology in their storeroom. 5S is a continuous inventory improvement methodology that consists of five simple steps that, over time, create more organized and efficient inventory management. When implemented correctly and consistently, the result is a cleaner, safer and more efficient workplace. It also streamlines production flow for higher productivity, less waste and better cycle time.
Each step is a fundamental part of the overall system and is associated with a different set of processes and products that include color-coded tools, magnetic solutions, labels, shadow boards for tool storage, floor markings and visual and physical organization products. The phases of 5S include:
- Sort
Eliminate clutter, unnecessary parts and materials. - Set-In-Order
Ensure a place for everything and everything in its place. - Shine
Maintain storeroom cleanliness. - Standardize
Create standard operating practices for all activities inside/outside storeroom. - Sustain
Encourage long-term success by making proper storeroom management a written company policy.
Caption: The above process chart depicts the 5S system, a method of lean thinking offered by the U.S. Environmental Protection Agency.
Best practices for effective MRO storerooms also include:
- Track parts usage with check-in and check-out processes
- Limit access to authorized personnel
- Use QR, barcode or RFID tags for parts check-in and check-out
- Consider kitting supplies when necessary
- Install proper lighting to encourage orderly storage
- Perform routine inventory counts
- Track MRO inventory along with asset management
How Industrial Vending Can Help MRO Inventory Management
Distributors can leverage value-added services like vending and inventory control software to help customers control rogue spending in their MRO supply management. Industrial vending machines and inventory control software, like 1sourcelive provides real-time reporting on MRO inventory, allowing customers to track and control MRO usage at the point of use to avoid stockouts.
Vending is a flexible and customizable solution. Customers can choose traditional helix-coil vending machines, locker vending machines, combination units, drawer cabinets and tabletop machines to begin streamlining their MRO inventory management immediately.
Related: Inventory Control Solutions for Improved MRO Supply Management and Decreased Downtime
Additionally, distributors can keep up with inventory across the customer’s facility from industrial vending machines to tool drawers and parts bins through the use of 1sourcevend’s QR/ Barcode Scanner. 1sourcelive connects industrial vending machines and tool room bins, offering distributors a bird’s eye view of their customers’ inventory needs while freeing them up to develop new business.
Watch the QR/ Barcode Scanner in action: QR / Barcode Scanner
The QR/ Barcode Scanner scans inventory item codes and generates automated reports to help reduce inventory waste, streamline purchasing, identify usage trends and optimize productivity for the customer, all while maximizing wallet share for the distributor. Other benefits include:
- Scan inventory item codes stored anywhere
- Sync inventory data with vending machine inventory in software for complete reporting
- Training, setup and ongoing support provided
Spend less time creating quotes, writing orders and sourcing last minute items with industrial vending solutions. Learn more about the benefits of 1sourcevend’s QR/Barcode Scanner.
Interested in learning more? Visit our website.
1sourcevend’s point-of-use inventory solutions and software are designed by distributors for distributors looking to differentiate themselves from the competition. Learn how we can help you choose the right inventory management software and American-made vending solutions to empower your customers. Request a Demo