Introduction
Manufacturing companies today are swimming in excess and obsolete MRO inventory. Analysts estimate that 40 to 60 percent of all MRO inventory in a manufacturing company is usually excess, obsolete, or infrequently used critical spare parts. This analysis mirrors GEP’s client experiences which show that more than 50 percent of their MRO inventory value is dormant i.e. hasn’t moved in at least three years. The trend is prevalent across industries and continents. In fact, in a recent discussion with a Finnish company, the client referred to its MRO inventory as FISH (First In Still Here).
In this white paper, experts from GEP recommend a two-pronged approach and proven strategies that you can implement to optimize your MRO inventory, and drive higher savings and profitability.