As part of the client’s two year plan for business improvement, we implemented a maintenance repair optimisation (MRO) warehouse program for the client’s refining plant. The programme included process improvements to the maintenance and operations functions and any immediate opportunities.

The supply chain function was also included with an assessment of the key customers of the warehouse services. This was followed by the design of key programs with input from a core team to support the design, validation and roll-out of programmes. The core team, selected by the client, comprised personnel from key integration touch points, such as maintenance, HR, safety, IT and procurement.

The MRO warehouse optimisation project focused on key elements of the supply chain strategy, and the key deliverables included:

• Review over $5,400,000 of inventory for slow moving materials that identified approximately $600,000 of inventory recommended for disposal
• Documented MRO materials, inventory and warehouse control strategies and repeatable processes validated by the client
• Development of process supporting tools including disposal cost tracker and decision making support tool and analysis tool
• System updates to support automation process
• KPIs and dashboard employed
• Reports created for supply chain visibility
• Customer interface to access KPIs and visibility reports
• Cycle count hybrid programme and inventory audit programme designed
• Root cause analysis training programme developed.

Based on findings of the MRO project, we estimated potential savings for slow moving and obsolete inventory at approximately US$1,050,000.