One of the most common reasons for inefficient stocking policies is that "they have been like that since day 1."
It is easy to put the blame on the design, commissioning and initial provisioning process, but it's not difficult to see why it happens. Inventory analysts often work with with very limited information. Early life requirements sometimes anticipate high initial failure rates. Inventory levels are frequently based on vendors' recommendations, and are not seriously reviewed after commissioning. In some cases, analysts are under pressure and fail to notice stocks of spare parts or equivalents that are available elsewhere in the organisation and so they duplicate existing stock.
Everyone knows that it would make sense to set initial stock levels correctly; the challenge is to have access to the right information, and to be able to test the proposed stock policies for sensitivity to extreme uncertainty in demand rate and resupply time.
MRO Analytics gives you tools to manage inventory take-on efficiently and effectively.
