Materials / Spares / Inventory Management

Do you really know how well you are managing your MRO Inventory?  In our experience, from carrying many audits and training courses in MRO Management, most companies manage spares poorly, resulting in many duplicates, lack of converting from OEM to OPM parts and consequently, ineffective stocking levels and costs. There are many reasons for this, but it usually starts with poor submission of vendors recommended spare parts data, poor cataloguing and poor initial spares selection.  Irrespective of the industry, whether it be Oil and Gas, Mining, Power, Food & Drink, Electronics, Semi-conductor Plants; all can improve spares management.

Statistics have shown that up to 50% of all unscheduled downtime is caused by missing parts. In addition, unnecessary parts can add an average of 15-20% to a companys' operating costs.  To manage this effectively, M2K have developed a comprehensive MRO Inventory Audit process, with six levels of review:

  • Level 1 - Review catalogue data (part descriptions, part numbers, material group codes, duplicate analysis.
  • Level 2 - Review stock balance, and inventory control parameters.
  • Level 3 - Review BOMs.
  • Level 4 - Comparison Analysis (a check for common items between different warehouses).
  • Level 5 - Gap Analysis of your management practices and provide a qualitative assessment.
  • Level 6 - Review in detail any written procedures in place.

Click HERE for full details (.pdf format)


In addition, M2K offers the following Material Management Services: 

  • MRO Spares Parts Optimization
  • Material Cataloguing
  • Material Data Cleansing and Improvement
  • Material / Spares Physical Verification
  • Auditing Inventory Control Effectiveness
  • Binning and Reconciliation
  • Spares Optimization Training

MRO Spares Parts Optimization

Spare Parts Optimization analysis evaluates the inventory hold policy for each spare part associated with an asset. A structured review and analysis of the existing inventory policy, stock levels, service level requirement based on e.g. consumption pattern and maintenance strategy will identify the optimum purchase quantity and re-order time. The analysis will also take in to consideration the lead-time stock, safety stock and minimum level.  M2K have developed MS Access tools to conduct auditing, cleansing of MRO Master Data and optimisation of current stocking levels.

Material Cataloguing

Material Cataloguing is a process used to record each material item with all details such as specifications, standards and descriptions. Thus providing easy identification, developing appropriate buying descriptions, procuring when needed and avoiding inventory duplicates.

Material Data Cleansing and Improvement

M2K can codifying and format each MRO (Maintenance, Repair and Operations) spare item as per international standards such as ECCMA, ISO 9008 with the help of a specialised proprietary tool MCAMS®. This software package develops complete buying descriptions for each MRO spare.

Material / Spares Physical Verification

When material data documentation is unavailable or is unable to be identified, M2K can support in identifying the material items through physical verification methods. M2K personnel will be deployed at client warehouses to collect the necessary details and to identify and build appropriate material item data & descriptions.

Auditing Inventory Control Effectiveness

The complete list of spares by vendor / supplier is reviewed for completeness and gaps in spares requirements identified. The data is used to develop SPIRs (Spares Parts Interchangeability Records) and quantify the numbers to stock, in order to build appropriate BOMs (Bills of Materials).

Binning and Reconciliation

Binning needs are developed or reviewed based on the material type, its storage requirements and the prevailing conditions. Reconciliation activities can ascertain the availability of materials in warehouse bins & yards and its quantities. The reconciled data can be updated into client ERP systems.

Spares Optimization Training

A Practical 4-day Workshop that covers the aspects related to reducing inventory and costs of spare parts and is supported by case studies, software and practical exercises to aid understanding.  This workshop focuses on reducing inventory and deals with the practical issues of spares cataloguing, optimising spares and stock reduction.