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Predictive MRO Inventory Management

The system is proprietary. The results are revolutionary.

The tighter your MRO inventory management, the smoother your overall MRO program – inventory control is the backbone of an efficient operation. Forecasting for MRO requires more than simple min/max ordering methods to account for the dynamic nature of your business. We’ve learned this from decades of MRO supply chain management, so we’ve developed a solution…

SDI’s own MRO inventory management system – SDiMS.

The SDI Inventory Management System (SDiMS) is a core component of our SDiExchange solution, developed expressly for MRO inventory, that combines technology, intellectual capital and management expertise to achieve optimum customer inventory levels while minimizing obsolete inventories. Translation:  the lowest possible cost of ownership for MRO.

How our MRO inventory management works.

Using historical data on daily usage and transactions, we develop a replenishment forecast that identifies what items and quantities to order that will reduce total inventory, increase service levels, and lower transportation and receiving costs. Our statistical modeling system draws from 32 different algorithms to apply the best model (i.e. moving average, seasonal trend, low volume) to predict demand.

SDiMS by the numbers.

The results continue to impress. SDiMS drives inventories to optimal levels without affecting service levels. Using SDiMS, our clients have reduced inventories by 20-40% while increasing service levels to 98% or above. Smaller, more efficient inventories mean savings via reduced administration and carrying costs – while increased service levels mean improved productivity.

Future protection is built in.

In addition to lowering active inventory levels, SDI can reduce future build-ups. Our MRO inventory management system alerts inventory managers to opportunities for reducing excess build-up by quickly identifying parts that have significantly reduced usage, eliminating the growth of obsolete inventory. Plus, over-utilized parts are identified to enable a root cause analysis that will determine if a machine needs maintenance or an employee needs training to relieve the consumption.

Success Story

Our former solution provider was not independent; they were a supplier of parts. It's not the best thing to have a supplier be your MRO outsourcing provider. With SDI, we have a truly independent sourcing agent looking after our best interests.

SDI at Work

Last month, SDI's Paula Hasbrouck talked about the Define phase of the Six Sigma methodology. This month, she talks about Measure phase, where current state data is translated into meaningful and reliable information. 

Further demonstrating the company's commitment to operational excellence, SDI, the leader in MRO supply chain management services, announced today that Paula Hasbrouck has earned her Six Sigma Master Black Belt certification from Villanova University. 

Employee Spotlight

Jeff is located at SDI’s Golden, Colorado MillerCoors site and is currently the Supervisor for the Brewing Plant Storerooms and manages the Golden Repairs program, while also holding the position of SDI Safety Coordinator at SDI’s Golden Facilities.