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Silvan Müller

Silvan Müller

Prompt

topic is smart logistics step one automatic storage
topic is smart logistics step one automatic storage [more]
Model: OpenArt SDXL
Width: 1024Height: 1024
Scale: 7Steps: 25
Sampler: Seed: 256398530

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Prompt: Managing inventories of maintenance, repair and operation (MRO) materials is a good example. Typically, the cost of maintenance or repairs is infinitely small compared to the costs associated with unplanned operation downtime. One of the production facilities I visited had built up over $5million in off balance sheet spare part inventory. This was caused by the practice of ordering three items when one was needed to ensure that spares were always on hand. The inventory was not visible on the balance sheet because the cost of all three items were expensed against the repair. Sound familiar? 
The practice is actually very common, particularly in larger companies where stock is distributed across many warehouses and many business units. The lack of communication and trust between warehouse managers leads them to build, and jealously, guard their own inventories. In a worst case scenario, I have seen managers purposely mis-identify and mis-label their stock to keep it invisible from other warehouse managers. The behavior was rational as their goal was to take care of the needs of their local production facility not the business as a whole. The solution was to improve communications and trust as well as encourage participation in meeting global rather than only local inventory goals. Better quality data was the key to raising the level of trust necessary to achieve global inventory visibility, but this also had to go hand in hand with streamlining the process for transferring inventory between business units.