Traditionally, Min/Max inventory management applies to only a small percentage of items in the storeroom – items with a consistent, predictable consumption pattern. The trouble is that MRO isn’t always consistent and not exactly predictable.
Fact: 65% of the items you purchased this year, you won’t purchase next year.
No wonder min/max causes more headaches than it resolves. Traditionally, replenishment levels were based on history and personal intuition. They weren’t monitored or adjusted over time for production changes. Exponential and accelerating growth of working capital tied up in excess and obsolete inventory is making predictive Inventory Management Systems (IMS) a hot topic, especially for MRO. IMS is important in the Maintenance, Repair and Operations supply chain in particular because mismanaged inventories can lead to:
- repeated stock-outs of mission-critical parts and materials
- machine downtime
- lost wrench time
- lost revenue in a hyper-competitive manufacturing industry where there is a growing focus on reliability and production uptime
In his upcoming on-demand webinar, available July 12th, SDI Senior Director of Field Operations, Ben Heinzerling, breaks down how traditional min/max is outdated and when to move towards more predictive stocking levels. He talks about how companies are moving to a predictive, adaptive, and intuitive approach to right-sizing inventory that leapfrogs the tired old Min/Max mentality.
He’ll review three areas where a more predictive and intelligent IMS are optimal, demonstrating with a side-by-side comparison the differences between min/max and predictive modeling.
Register for this on-demand webinar and you’ll learn how companies are reducing inventory by 10-30% simply by evolving beyond the min/max approach to a more predictive inventory management system.
Ben Heinzerling is also the host of SDI’s upcoming YouTube series, 60 Seconds to Best-in-Class. Be sure to check out the first in this series launching in July on SDI’s YouTube Channel and SDI.com.