Managed inventory solutions aren’t new in the world of manufacturing and the solutions on offer are increasing in availability and sophistication. But a report from RS on the state of play in MRO procurement has highlighted the use or adoption of managed inventory services is falling.
The 2025 indirect procurement report Tackling the Cost of Business, based on survey findings, showed the proportion of respondents using these services has fallen from 20 per cent in the previous year, to only 13 per cent this year.
The same report showed 40 per cent of respondents cited a need to reduce inventory costs, which is a mission that can be greatly aided with managed inventory services. Are manufacturing operators missing a trick by not capitalising on the benefits of these kinds of solutions?
Streamline availability of goods to where they’re needed
When it comes to fast-moving consumables, whether it’s Maintenance Repair and Operations (MRO) components, production line goods or items like personal protective equipment (PPE), getting products to where they’re needed, when they’re needed, is crucial for efficiency.
Having near-lineside access to such components can make a significant difference to factory floor operators. According to RS, 22 per cent of engineers leave stores without their desired item. Therefore, reducing walk and wait times is important, as well as ensuring parts can be located easily, further reducing required resource. This enhanced availability supports productivity and reduces approval bottlenecks, as well as negating searching for products.
Managed inventory solutions can comprise access through digital kiosks to search for items, with fast retrieval from nearby shelves, or open bin options. They can also include vending machine-style access where components may be higher value and/or require tighter controls.
Free up working capital with effective inventory management
In challenging and turbulent economic times, freeing up capital is crucial. All too often, cash is tied up in inventory which may not yet be needed or taking up valuable storage space. But having the right parts for when needed is as important to keeping the production line moving.
This is where managed inventory solutions offer the best of both worlds. These systems offer auto-replenishment, which is facilitated when a digital instruction updates the database when an end user takes a part. This ensures high product availability with just-in-time stock re-ordering and delivery. The provision of consumption insights and more control and traceability over products, all results in maximum productivity derived from high product availability.
Some providers offer advice or design services to implement correct storage solutions for the required components, help manufacturing operators determine the right product profile to have readily available. They can also even put away items that have been delivered for replenishment. Further productivity and resource savings can be made as less time is spent on raising orders and awaiting deliveries. Consolidated invoiced summaries reduce paperwork and further preserve valuable resource.
Keep workers safe with high PPE product availability
Maintaining a hazard-free workplace environment and keeping employees safe is not only the right thing to do, but essential for compliance. However, ensuring PPE of the right types in the required quantities available for staff when they need them can be a challenge in manufacturing settings. This challenge is enhanced in companies where growth is underway: scaling product availability quickly and effectively is no mean feat.
In many cases, staff have to request the PPE, then it will be someone’s job to pick and label the requested items from stores, then either message the teams to collect them or bring them to where they are needed. This can lead to a backlog of items waiting to be picked up.
When this process is used, stock control can be challenging as can replenishment. If PPE items run low or stock-out, safety and compliance are at risk. Using a digitally-enabled inventory management solution will help overcome these types of scenarios.
It’s clear that managed inventory solutions can help firms make real cost savings at a time when it’s most needed. But the benefits go far beyond cost savings. Removing the tedium and frustration from time-consuming manual processes, and the stress of stock availability and delays, enables staff to concentrate on value-add business activities.
There is also an Environmental, Social & Governance (ESG) benefit, as replenishment of stock is done in a more controlled way with regular pre-sorted deliveries.
RS offers a variety of managed inventory services, details of which can be found here.
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