Savings in store

01 December 2013

MRO (maintenance, repair and operations) stores are a goldmine waiting to be tapped, according to Peter Gagg, MD of lean engineering and training consultancy, MCP. He says that a large company could save an investment of say, £10,000 one hundred times over in just two years. That’s about £1 million for a store issuing £200,000 of parts per year.


MCP reports that its spare parts and materials’ management audits currently show average scores of around 55% when compared to the world class benchmark of at least 75%.

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%. 


Gadd says: "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 too high!’