Demand-Driven Supply Chain Planning for MRO Inventory
Successfully managing MRO inventory involves managing 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 stock policies and service provided.
In addition, MRO often serves two types of consumption streams: the independent statistical demand that arrives randomly from the market or consumption points and the dependent demand which is related to specific maintenance and diverse programs and causal factors related to parts lifecycles (e.g., hours of operation vs. mean-time-to-failure).
Our solutions are ideally suited for this sort of environment. Our multi-dimensional demand models provide an exceptional ability to model lumpy demand and slow moving inventory. They deliver stable, reliable and very high service levels: our customers are routinely obtaining service levels in the high 90s.
Our solution starts with best-of-breed forecasting. It features powerful planning models that incorporate internal and external elements such as: trends, seasonal demand profiles, new product forecasting, and returns and substitutions. The solution supports segmentation and defining aggregate target service levels. The solution can simultaneously model dependent and independent demand and aggregate the flows for consolidated supply and inventory optimization. Inventory optimization and replenishment delivers high customer service levels, even across complex multi-echelon networks. It also addresses multi item-type management, multi control-type management, M to N super-sessions, SIOP, and Vendor Managed Inventory (VMI).
For a complete description of our MRO solution and our customer experience, please contact the ToolsGroup office nearest you.
