‘You can think of your MRO (maintenance, repair and operations) stores as a goldmine waiting to be tapped. A large company could save an investment of say, £10,000 one hundred times over in just two years. That’s around £1 million for a store issuing £200,000 (of parts) per year’, reports MCP’s MD, Peter Gagg.
‘Typically stock turns are around three to five times per year, when they should be nearer one. On completion of a parts and stores audit a company is likely to see savings of 10% per annum on the above figure, plus a one-off windfall of around 10-15% of total stock value, as we nearly always find that stock levels are almost always too high!’
A full audit will cover 4 days on-site with a one day strategy and briefing workshop with managers and personnel and is designed to assess the gap between current status and best practice. Amongst the benefits accruing from the spare parts and materials’ audit will be improved cost performance, reduction in inventory-replenishment purchase by up to 60% and lower storeroom inventories of at least 30%.
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