Supply Chain Efficiency

Sam the Pizza man owns Sam’s Slices. It is a hometown favorite and every Friday there is a line out the door. How Sam organizes the business affairs of the pizza shop will determine profit he could or will make. Sam must ensure that he not only has the materials to make the pizza’s but knowledge of when they need to be replaced and/or repaired.

 

MRO Supply Challenges

 

While going over the first year of Sam’s Slices, Sam noticed operational expenses to be extremely high. This triggered him to begin looking at his MRO supply chain process. Is there a strategy in place? Preparing your business to run without unnecessary interruption is important to maintaining a healthy thriving establishment. If things are constantly breaking your focus is not growing the business but more so recovery of the lost equipment. It is crucial to know what your challenges are and have a plan in place to avoid them.

 

Choose the System that works for your business

 

Production expenses can become crippling if not managed correctly. You never want to find yourself with a car plant and too many motors or pizza shop without enough pizza boxes. Too many motors could mean too much capital tied up where not having enough pizza boxes on hand means no pizza. These are two extreme scenarios that carry the same negative consequence: loss of profit. Choosing a system whether automated or as-needed is important implement to avoid work interruptions. You don’t want to automate the process so regardless of business need you are ordering too many of something or so automated that you are running out of supplies before new inventory is available. The proper balance will keep enough money on hand for emergencies while not leaving your business in a bind.

 

Maintaining Equipment will Save on Replacement Costs

 

Are you properly maintaining your equipment? If you are Sam how often do you service, your oven or POS device? Imagine the oven not getting hot or the computer going slow in the middle of a rush hour? The slowing of these items should not force you to close the business but will decrease production, essentially making it more difficult to meet sales goals.

 

If you are in a predicament where replacing a crucial piece of equipment is necessary, shopping around for the best price is key. Picking the first option may save on time but not always money. By taking the time to search around, read reviews and compare prices you may save yourself not only a couple bucks but also on having to purchase an item twice. Imagine Sam needs to replace his POS (point of sale) system. He goes online and purchases the first option that pops up. While it only took him a few minutes to complete he lost the opportunity to shop around. There may have been horrible reviews on this specific system or he may be paying an unnecessary premium.

 

Organization is Critical

 

Maintaining a clear and organized stockroom allows for a concise MRO supply chain management system. Sam is unable to determine how many pizza boxes he has if they are scattered around the shop. You should be able to clearly and concisely determine if you have or will need supplies to run your business. Once the initial organizing takes place, it is important to get staff trained and onboard. They need to know how the organization works and how to maintain it. The last thing you need is to take time tabulating supplies for an employee to throw the entire system out of whack.

 

There is no sense in starting a company to have a poor mro supply management system bring it down. Remembering there is no one system that works for everyone but being organized and staying on top of maintenance will always save time and money.