Maintenance, Repair and Operations (MRO) inventory optimisation is not just a technical concern, it is a strategic priority for industries that depend on operational reliability and efficiency. Striking the right balance between availability and cost containment is central to reducing downtime, waste, and inefficiencies. At the heart of this process lies one critical enabler: data.
Fragmented supply chains, dispersed inventory, and inconsistent practices often hamper efforts to manage MRO effectively. To address this complexity, organisations are turning to data-driven methods that improve procurement strategies, storeroom visibility, and asset availability.
Building the Foundation with Accurate Data
Optimisation starts with visibility. Without accurate, standardised data on current inventory holdings, strategic decisions are little more than guesswork. According to KPMG, high-quality data is the foundation for any effective business improvement process. Their virtual inventory framework highlights the importance of categorising SKUs by demand profile and applying forecasting methodologies to improve predictability and reduce unplanned downtime.
Deloitte echoes this sentiment, noting that inventory excellence begins with governance, analytics, and visibility. Their research shows that inventory carrying costs typically range from 7%–16%, and poor data quality can lead to regulatory lag and unnecessary operational expenses.
Minimising Downtime Through Visibility and Control
Inefficient inventory management doesn’t just waste money—it increases the risk of production stoppages. In one case involving a life sciences client, unreliable data meant that 15% of required materials were unavailable when needed, triggering costly emergency procurement and delays.
Deloitte’s case studies reveal that utilities using supplier-managed inventory models have achieved up to 80% inventory reduction and improved material availability from 93% to 97%. These outcomes were driven by centralised governance and predictive analytics, which enabled smarter stocking decisions and reduced transaction volumes.
Rightsizing is the Heart of Optimisation
Holding stock incurs cost. Rightsizing, maintaining the optimal stock level to ensure continuity without over-investment, is a central goal of MRO optimisation. With visibility into consumption patterns and supplier lead times, companies can set data-informed minimum and maximum levels, automating replenishment as needed.
KPMG’s approach reinforces this by advocating for collaborative planning between maintenance and procurement teams. Their methodology ensures that planned maintenance items are not forecasted unnecessarily, and that central vs. local stock decisions are based on demand nature and lifecycle analysis.
Embedding Continuous Improvement Through Strategy and Design
Optimisation is a continuous process, not a one-off fix. Deloitte recommends centralising inventory policies and leveraging virtual pooled inventory to reduce duplication and improve service levels. Their analytics-driven SKU rationalisation has helped global manufacturers cut inventory costs by up to 25%.
In some scenarios, centralising inventory improves transparency and eliminates duplication. Consolidating stock-keeping units (SKUs) and implementing digital inventory systems can significantly reduce time spent searching for maintenance parts. In other contexts, decentralisation is more effective. Tailored solutions can also add more to operational value, highlighting the importance of fit-for-purpose design.
The Road to Transformation
There is no universal template for MRO inventory optimisation. Each site and sector present unique challenges, risks, and priorities. However, what all successful strategies have in common is the intelligent use of data, combined with expertise to turn insight into action.
Optimisation is a discipline. With the right tools and mindset, inventory can shift from being a sunk cost to a source of measurable advantage. This is the power of MRO inventory optimisation: driven by data, informed by strategy, and designed to deliver lasting impact.
RS South Africa is a trading brand of RS Group plc (LSE: RS1) and a leading provider of industrial product and service solutions.
References
- Deloitte Consulting LLP (2019) Making the case for inventory optimization. Internal publication.
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Author: Thobile Ndlovu from NGAGE on behalf of RS South Africa.
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