What is MRO, why its important, and why you need MRO Optimization?

Warehouse Interior with boxes

(image credit: Pikrepo)

First of all, I'm no expert concerning this topic. I might be wrong, but if you can comprehend and do think that I'm correct, I'm very much happy that I was able to help. Let us begin with the word MRO, is an acronym that stands for maintenance, repair, and operating supplies, which are all those material consumed during the production process. But which do not either become part of the end product. In other words things or tools that used before, after, or during the operation or processing of an end product.

Every year there are a lot of industries that spend millions on inventory supplies. It doesn't need everything and won't use that's at most, because nobody's certain what parts are going to wear out. When so, everyone buys plenty because the cost of not having something in stock is huge over buying, isn't great for cash flow and inventory planners know it this is the bill he spends his life trying to get the inventory levels right but it's tricky for every one of his 1,000 parts he's got to ask himself like a hundred times.

Why the MRO is important?
MRO is becoming exponentially more important for small or huge warehouses. Largely because product demand is increasing at a very fast pace. Which why in the field and customers are expecting the lifespan of an individual product to last much longer and has better quality than they have in past years. So MRO is becoming more important for these complex inventories. When it comes to the quality of what they're supplying when it comes to the knowledge base for what they're supplying, and how they're supplying as well as that repetitive and repeatable process. They need to do maintenance, repair, and check the operation supplies or inventory. In the past, the best way to manage any MRO process first is organization and process control. Mostly the company inventory management is depending on min/max for resupplying supplies. But nowadays, the moment that you have reduced paperwork, the moment that you have all of your information in an organized and categorized system, the moment that you have complete documentation and the visibility of where all the documentation resides, then you know you have a good start into your MRO process and process realignment as well as improvement on efficiencies. Well, you get it right when you deliver a quality product/services, so the moment that you have a repeatable quality deliverable or serviceable for your customer you know that you're doing something right. The key point though is to have continuous improvement with these quality processes, so if a non-conformance or discrepancy is identified you have a consistent repeatable process to not only resolve that discrepancy but correct it for down the road.


Importance of MRO
To make it much easier to comprehend the importance. Imagine you are preparing a burger for yourself. Whether before, after, or during the processing or cooking burger, you will use tools, equipment, and supplies. Then, those tools, equipment, and supplies need maintenance (such cleaning tools and equipment), repairing the broken things (such as tools and equipment), and resupply the operating supplies (such as gas). If you notice without those three, you won't be able to process or cook the burger. That's why it is very important to know and have data on which tools or equipment needs maintenance, repair, or operating supplies. Therefore, whether an industrial factory or warehouse will be needing MRO.


Now, most business owners or stock/inventory management are using min/max for resupplying or restocking supplies, items, or products. Which is time-consuming and does not calculate the lead time of the supplier. Since we understood the MRO and the importance of MRO, the next thing is optimizing the MRO.

Why do I need MRO optimization?
Let use the example from the above, without optimizing the MRO what do you think will happen. You might experience not to finish the products/services, lose the quality or damage the product, or don't have an efficient way or technique to finish the products/services on time. Let use again the scenario of cooking a burger, if your flame is too high or hot you will burn the patty, while if too low you won't cook the patty properly on time or will lead to the undercooked patty, which will lose the quality of the burger. But if you optimize the technique of cooking the patty, you will be able to have a good quality meal. It's the same as the maintenance, repair, and operating supplies, without optimizing the maintenance technique and repairs, most tools and equipment will gradually lose its effectiveness or function. Also, without checking operating supplies, you might notice after some time there will be shortages or overstock to the supplies.


Possible things that you need to optimize your MRO:
-Storeroom Manager, to get requisitions faster
-Monitor the improvement of stockout situation
-Improving the workflows, especially for big-budget approvals
-Visibility of expenditure against budget and prioritized purchase
-Periodically update the safety stock levels as the items ordered every time
-Every time data improved order the suggested quantity and check the safety stock adjustment level


I hope you find it likable and funny for my being creative to simplify while elaborating on the importance of MRO and optimization of MRO. If you have more suggestions, opinions, or corrections, please don't hesitate to leave comments or contact me. Thanks for your time reading my article.


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