5 Ways to Improve the Efficiency of Your MRO Supply Chain
Are you ready to improve the efficiency of your MRO supply chain but don’t know where to begin? If your current strategies aren’t working, implementing a few changes may be the solution.
Each phase of the MRO supply chain is important. If one area is weak, the others suffer as the ripple effects touch all aspects of your operation. However, when your supply chain runs effectively, it boosts worker morale, increases production efficiency, and raises your bottom line.
Like any other business, your priorities are to reduce costs and production time. So let’s talk about some ways to improve your company’s performance in those areas.
Importance of Supply Chain Efficiency
As a crucial part of your overall business strategy, efficient MRO inventory management can save your business money in inventory carrying costs and cash flow. It will also help reduce lead times for critical spare parts, thereby improving plant uptime.
By definition, supply chain efficiency is the internal standard for the performance of any company. It refers to how quickly and cost-effectively your company meets the demands of your manufacturing or production teams as well as customers for your finished product outside of your organization.
Here are a few suggestions for supply chain improvements that may prove helpful:
5 Supply Chain Improvements for Enhanced Performance
An efficient, effective supply chain gives your business a competitive advantage over other companies in the same industry. However, with the sudden increases in eCommerce and the digital supply chain, it’s becoming more challenging to provide the speed and accuracy today’s demanding consumers expect.
One simple delayed shipment due to production downtime can cause them to turn to another company for their products, so you certainly want to do all you can to avoid that scenario.
If you want your business to stand out from the crowd, here are some strategic steps for maximizing supply chain performance:
1. Implement a Modern CMMS
Implementing a computerized maintenance management system (CMMS) is the first step in improving supply chain efficiency. A modern CMMS can be utilized as a front-end management system for work order management, inventory control, storeroom management, and preventive maintenance.
A CMMS provides accurate data that allows you to make informed decisions on equipment efficiency improvements, supply chain planning, inventory optimization, and improving plant uptime. These metrics will tell you when, where, and how to adjust your supply chain and operations to meet production goals.
2. Adopt Storeroom Management Technology and Best Practices
Combining the storeroom management components of a modern CMMS with storeroom best practices will enhance plant operations. When your storeroom is organized to 6S standards, you’ll spend less on labor, maximize the use of available space, and lower shipping and handling costs. Best practices of commodity segregation, visible labeling/signage, systemic cycle-counting, and advanced kitting for PMs will ensure that production, maintenance, and facilities are Supported efficiently reducing downtime.
3. Use Condition Monitoring Equipment
Condition monitoring equipment will help you identify potential equipment issues and take steps to prevent failures. For example, products such as DXP’s PredictPlus reduce catastrophic failures in rotating equipment and keep equipment running smoothly to save money, time, and resources.
4. Train Your Supply Chain Workforce
Building an efficient and effective supply chain involves having a well-trained workforce. A custom training program that addresses procurement, inventory management, safety, and compliance best practices is vital to improving operations and maintaining a competitive edge in the marketplace.
Whether your employees are procuring products or stacking pallets, their efficiency and safety can affect every stage of the supply chain.
5. Implement Sustainable Supply Chain Practices
If you aren’t satisfied with your supply chain efficiency, implementing sustainable supply chain practices will maximize performance in all areas. Some steps you can take to improve performance include:
- Revise your supply chain strategy leveraging technology and best practices
- Evaluate your supplier relationships looking for partners that reduce your TCO
- Use demand planning offered by modern CMMS platforms
- Expand supply chain visibility through baselining and metrics
- Monitor your system’s performance with BI tools / dashboards and leading indicators
These steps will help you identify where problems are coming from and formulate a plan to rectify recurring issues.
Unlock Supply Chain Efficiency with DXP
The digital supply chain has grown significantly in the last few years, placing greater demands on organizations to evolve. As such, organizations are looking for solutions for improving supply chain efficiency. Many are turning to third-party MRO supply chain experts to help them streamline operations for improved productivity.
If you’re looking for a reliable supply chain management provider, DXP’s SmartSolutions program is a custom-tailored, innovative approach to resolving your unique problems. Our supply chain experts spent decades creating the best software tools available to allow clients to monitor and control all aspects of their supply chain operations.
Contact DXP today to learn how our SmartSolutions program will address all of your supply chain concerns and challenges. Our program has helped many clients increase productivity and reduce costs, and it can do the same for your organization.