The Challenge

Industry needs a vast array of supplies to keep operations running.  These indirect materials, often referred to as Maintenance, Repair and Operations (MRO) materials, account for over $150 billion in annual sales in the US alone.  The financial value of these materials provides ample incentive to pursue optimization and efficiency, yet several factors stand in the way of such efforts. These include:

• “Unplanned” usage (not on Bill-of-Material)
• Fragmented supply relationships, proliferated SKUs
• Inefficient/small order size (average $200)
• Excessive usage/shrinkage
• Wasteful workflows.

The “Lean MRO” Concept

Nexiant applies tried and tested Lean Principles to the end-to-end MRO supply chain linking industrial distributors/suppliers and their customers. The fundamental concepts include:

• Driving replenishment from usage or demand signal
• Consolidating supply relationships and SKUs
• Automating order flow to eliminate manual steps
• Identifying and controlling usage
• 24/7 access by authorized users at point-of-use.

In the world of direct materials, dramatic progress has been achieved over the past three decades to bring procurement under control, increase inventory turns, eliminate waste and boost profitability. Lean MRO simply applies the same proven approach to the world of indirect materials to achieve similarly dramatic results using dedicated systems and technology.

What Makes Nexiant Unique?

Nexiant is the only technology provider that provides the industry with an end-to-end supply-chain solution.  Our approach links the suppliers and consumers of MRO materials with an integrated solution that cuts cost and improves competitiveness for both parties.  This unique approach includes:

• Point-of-Use dispensing systems to deliver needed items to authorized users at the workplace with automated usage accounting and replenishment signaling.  Nexiant offers its own line of patented dispensing systems, and we can also integrate with third-party equipment.
• Support for storerooms, scanners and mobile devices to manage bulky or slow-moving items, and to record movements through VMI and CMI locations.
• Cloud-based MRO management software to provide anywhere, anytime access and to connect all supply-chain participants.
• MRO-specific software capabilities, including SKU consolidation, maintenance planning and tool management.
• Enterprise hierarchies to provide appropriate visibility to authorized users.  Industrial customers can view inventory at the location, site, division or enterprise level.  Distributors and suppliers can select from warehouse, branch, region, channel or enterprise levels.  In each case, there is no restriction on the breadth or depth of the hierarchy, and the appropriate view can be selected for reporting and analysis
• Built-in business intelligence to establish and monitor metrics and KPIs
• Standards-based integration using the latest technologies to permit secure connection to customer ERP, Procurement and Maintenance Systems, and to distributor/supplier catalog and order management systems.

Results of Lean MRO

Lean MRO benefits distributors by consolidating orders and eliminating many call center and other costs associated with traditional customer service. Nexiant keeps orders flowing 24/7.  In addition, the cost-savings provided to customers provide a competitive edge and an opportunity to increase account penetration and grow market share.
 
Lean MRO benefits manufacturers and other industrial users by driving down inventory, reducing management costs, and improving employee productivity. Nexiant dispenses inventory and signals replenishment 24/7 to keep operations running while improving profitability.