MRO
Business and Inventory Challenges
MRO inventory involves large catalogues of parts with extremely diverse and heterogeneous demand and supply behaviors. Every part attribute has very different values, from very expensive to low cost items, and from a few fast movers to many extremely slow movers.High service levels are required for all, but particularly critical parts. The core of the MRO operational challenge is the ability to efficiently manage the large number of parts across the network and to wisely segment and differentiate the service provided. Because of the size and complexity of problem, the inventory mix tends to deteriorate over time.
In addition, MRO often serves two types of demand streams: the independent statistical demand that arrives randomly from the market or consumption points and the dependent demand which is related to specific maintenance programs and causal factors related to parts lifecycles (e.g., hours of operation vs. mean-time-to-failure). This further complicates the inventory planning which has to account for two different demand streams.
ToolsGroup's Unique Capabilities
ToolsGroup's solution for MRO is highly reliable and scalable, and able of deliver higher overall service level utilizing less working capital. Our unique self-adaptive demand and inventory modeling techniques are highly automated and support a sustainable solution.The solution supports segmentation and defining aggregate target service levels. An optimization engine makes the quantitative trade-offs to constantly optimize the mix and insure the highest business performance for the least amount of working capital. The solution can manage dependent and independent simultaneously in the same model and aggregate the flows for consolidated supply and inventory optimization.
ToolsGroup solutions also address many of the specific needs of MRO inventories such as handling:
- Multi item-type management
- Multi control-type management
- Constraint-based optimization
- M to N super-sessions
- Complex multi-echelon network models
- Multistage rough cut capacity planning
Successes
ToolsGroup is already successfully deployed at several MRO customers, such as:- Amara
- GE Plastics
- Barilla
- Ansaldo