Escaping the MRO Storeroom Productivity Trap: Proven Strategies to Cut Costs and Boost Efficiency

In any high‑performing operation, every task must be completed as efficiently, safely, and cost‑effectively as possible. For MRO (maintenance, repair and operations) storerooms, that means mastering a suite of best‑practice processes that keep inventory, people, equipment and information operating at peak levels.

• Add/Change/Delete Process
• Cycle Counting
• ABC Analysis
• Purchasing and Expediting
• Incoming Inspection / Quality Assurance
• Receiving and Stocking
• Kitting and Delivery
• Repairable Spares Process
• Return to Stock / Vendor
• Obsolescence Review

Documented best practices serve as a clear communication tool, ensuring every team member knows the correct procedures and how they interlock. Yet documentation alone is not enough—execution is the decisive factor that shapes the overall performance of your storeroom.

Even with world‑class processes and flawless execution, many storerooms still suffer productivity losses due to foundational gaps. Typical culprits include:

• Cluttered layout and sub‑optimal rack, shelving, and bin placement that slow stocking and picking.
• Inadequate software or system support that leaves critical data out of the system.
• Stockouts and inventory inaccuracies that delay maintenance and halt production.
• Rigid storekeeper roles or a lack of cross‑training that limits coverage during absences.

Perhaps the most damaging issue is the prevalence of the “open storeroom” model. Our extensive audit of hundreds of operations shows that 40–50% of maintenance departments operate with an open system—unrestricted access, minimal controls, and reliance on an “honor system.” This often translates to workers spending an hour or more each day wandering the storeroom, searching for parts, and completing paperwork that could be avoided with tighter controls.

When parts are withdrawn without proper tracking, maintenance teams lose confidence in the storeroom’s inventory. To compensate, they stash spare parts in lockers, desks, trailers, and other unsanctioned locations—creating a hidden, untracked inventory that inflates costs, increases the risk of incorrect or low‑quality parts, and accelerates obsolescence.

• Higher likelihood of receiving incorrect or poor‑quality parts.
• Bloat in on‑hand and off‑hand inventory.
• Accelerated obsolescence due to poor tracking.

These inefficiencies erode communication, coordination, and trust between maintenance and storeroom teams. The solution is two‑fold: first, establish a robust physical and digital infrastructure; second, create a partnership that clearly delineates roles—allow mechanics to focus on equipment reliability while storeroom staff manage materials.

• Reduced material spend through fewer, cheaper repairs.
• Lower expediting costs from fewer stockouts and rush orders.
• Improved data accuracy.
• Minimal obsolete inventory.
• Reliable vendor service and consistent quality.
• Fewer workplace injuries and accidents.

If you find yourself in the 40–50% bracket, it’s time to close the storeroom, assign the right people, and implement the right processes. Escape the productivity trap and unlock your maintenance operation’s full potential.

This article first appeared in the September edition of Life Cycle Engineering’s RxToday newsletter.

About the author:
Doug Wallace, CPIM, brings over 30 years of experience in supply chain operations and management consulting, specializing in global enterprise planning, production and inventory control, and materials management. As a subject matter expert for Life Cycle Engineering, he focuses on implementing best practices in procurement, warehouse operations, inventory optimization, and business information systems. Reach him at dwallace@LCE.com. For more information, visit www.LCE.com.