Especially for large scale, complex, and asset intensive industries such as mining or energy inventory, or commodity resources can be significantly challenging due to their unique and diverse requirements. Not only for day-to-day operations, but certain regulations may also apply thus requiring industry executives to be on their toes at all times in anticipation of disruptions.
With multiple factors at play, most notably and applicable to the Ukraine-Russia war and shortages of raw materials, more energy providers will feel the increasing strain of inventory issues among other things. Supply chains in materials continue to disrupt the global market, as evidenced by record-high steel prices which have a direct impact on the oil and gas market.
These conditions are also aggravated by subsequent delays in transportation, workforce shortages, inflationary pressure, lack of alternative suppliers, and so on.
The same also applies to the mining industry, which despite projected growth of 12,3% in market size, will have to face higher expenses due to global uncertainties. Listed mining companies also must keep up with their accurate tracking and reporting to regulatory organizations. Failure in maintaining resources and reserves in inventory may pose critical matters to the business, particularly in the long run.
An Inventory System Optimized For Disruptions
Jay Forrester, a prominent American computer engineer & system scientist, once coined the term "Bullwhip Effect" which sums up the current condition faced by many industries. When small changes in demand disrupt the entire production, capacity, and inventory throughout the supply chain.
This bullwhip effect can lead to tremendous inefficiencies in planning, inventory management, and logistics. It frequently results in a buildup of excess inventory, and when we experience a downturn, the result is a sharp reduction in revenue and a potential loss of profit. Poor customer service, misguided capacity plans, and missed production schedules are all additional impacts of the bullwhip effect. (Lee et al. 1997a)
The good news is, industry keyholders and executives at least now know where to focus to keep up with profitable business. In the face of these external issues, the smartest strategic move one can make is to clear the internal inventory system from miscalculations, excess inventory that ties up capital, backlogs, etc.
In short, each company or organization must apply a better and stronger inventory automation technology, starting from now.
Stay Ahead with IBM Maximo MRO Inventory Optimisation
Built to handle complex and dynamic businesses, IBM Maximo IO (Inventory Optimization) is your complete solution. Part of the intelligent asset management by IBM Maximo, MRO IO is specifically designed as an all-encompassing answer for inventory systems, including the optimization of Maintenance, Repair, and Operations (MRO).
IBM Maximo MRO IO integrates with EAM and ERP applications to easily automate day-to-day tasks while generating data analysis from transactions and records using its algorithm. This insight will determine in real-time if the current stocking strategy is still valid or needs improvement. The information provided by the IBM Maximo MRO IO will enable better problem-solving and decision making, ultimately increasing production and uptime, business agility, and cash flow.
On average, IBM Maximo MRO IO has proven to help reduce inventory holdings by 20%. Additionally, reports have also shown significant reductions in unplanned downtime related to parts (50%), inventory costs (40%), and manual process work ( up to 1700 hours). It has also enabled savings in the maintenance budget by up to 35% and freed up working capital for other funding.
For energy providers, it's time to improve productivity with better inventory planning with IBM Maximo MRO IO, while preparing accurate stocks across regions and distribution centers. Meanwhile, mining industries can focus on strategic business moves as IBM Maximo MRO IO ensures the on-site availability of critical materials and spares across geographical regions.
IBM Maximo MRO IO also can be applied to manufacturing, oil & gas, and all industries looking to tap into the best business potentials.
Get ready to be on the path of accuracy and profits with technology that works - IBM Maximo MRO IO.
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