Four Proven Strategies to Boost MRO Reliability and Cut Costs

In many organizations, maintenance, repair and operations (MRO) inventory is treated as a cost centre rather than a strategic asset. Yet, the way MRO stores are managed can significantly influence plant reliability and profitability. By treating MRO as a core plant function, companies can unlock hidden value and improve overall performance.

Any function that reduces profit, increases mean time to repair (MTTR) or hampers production should be re‑engineered. MRO is no exception. Transforming MRO from a drain on profits into a profit‑contributing function requires a deliberate shift in strategy. The following four pillars can guide that transformation:

Master Data Leadership

It all starts with master data leadership (MDL). Establishing a single, accurate description for every part eliminates SKU duplication, lowers inventory levels, improves fill rates, and reduces downtime. For example, a multinational pharmaceutical company with eight North American plants catalogued 260,000 MRO SKUs. An MDL initiative identified and consolidated duplicates—such as six separate AA‑battery listings—into one standardized entry: “Batteries, AA, Energizer #E96.” The result was an 85 % inventory reduction for AA batteries with zero stockouts, and a similar impact across the entire SKU base.

An Asset Reliability Strategy

Aligning MRO with plant reliability goals requires a clear asset reliability strategy. A large food processor, for instance, had a highly skilled maintenance team that could restore equipment quickly, but plant reliability remained stagnant because their asset management system was underused. After engaging a third‑party expert, the organization set measurable KPIs—including MRO metrics—and re‑aligned maintenance practices. The outcome was a world‑class operation that lowered MTTR, boosted worker efficiency, and raised overall reliability.

Customized CMMS

A computerised maintenance management system (CMMS) must do more than issue work orders; it should weave MDL, asset reliability, and preventive maintenance into a single, data‑driven workflow. A heavy‑industry customer in Detroit relied on an overly complex enterprise system that failed to provide the controls needed for reliable maintenance. Switching to a dedicated CMMS connected MRO operations with maintenance programs, synchronised data across disciplines, and delivered the transparency required for continuous improvement.

Supply‑Chain Management

Effective MRO management extends beyond the storeroom to the entire supply chain—from manufacturers to plant end‑users. Without expertise and authority at the storeroom level, the gains from MDL, asset reliability, and a tailored CMMS cannot be realised. Transforming the process demands strong leadership, clear ROI documentation, and measurable KPIs that align with plant objectives. A specialised provider can assess total cost of ownership, demonstrate ROI, and draft a statement of work that supports the desired outcomes.

In short, MRO supply chains are rife with duplicate tasks and hidden costs. By adopting the four functions above, organizations can synchronize MRO with asset reliability, reduce total cost of ownership, and ultimately strengthen plant performance.

About the Author

George Krauter is the vice president of Synovos in Radnor, Pennsylvania. An authority on cost optimisation and reliable maintenance‑connected MRO storerooms, he pioneered the integrated supply concept that is now widely adopted. George has also authored the book “Outsourcing MRO… Finding a Better Way.” He can be reached at gkrauter@synovos.com.