Gartner Research

Best Practices for Optimizing MRO Inventory at Utilities

Published: 25 November 2014

ID: G00270276

Analyst(s): Kristian Steenstrup , Leif Eriksen


This research explores best practices for putting an inventory optimization process in place. Utility COOs and CIOs can learn from Nebraska Public Power District, which moved millions of dollars in inventory off the books and reduced MRO investments without impacting reliability or service time.

Table Of Contents
  • Key Challenges


  • Backdrop


  • Invest in Core EAM Systems and Processes to Ensure Good-Quality Data About Inventory, Its Historical Usage and Criticality
  • Invest in Analytical Tools to Calculate Optimal MRO Inventory Levels That Take Into Account Predictability, Criticality and Procurement Lead Times
  • Make a Permanent Shift to Inventory Optimization as a New Way of Conducting Business, Not Just a One-Time Inventory Reduction Effort
  • Bottom Line

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