INDUSTRY NEWS
MRO SUPPLY CHAIN ISSUES RESULT IN MANUFACTURERS WRITING OFF MILLIONS OF POUNDS, SAYS NEW REPORT
Launched in association with the Institute of Engineering & Technology, the Maintenance, Repair and Operational (MRO) Supply Chain report from ERIKS covers MRO procurement, the engineering stores function, and the MRO supply chain, highlighting several critical insights crucial for operational efficiency.
According to the report, for the first time a direct link has been made between unscheduled downtime and the operation of the engineering stores, the supply chain, and the MRO procurement function. The survey clearly demonstrated that in 2023 themain causes of downtime in UKmanufacturing businesses was due to spares availability and lead time issues. A further revelation covered in the report is that UK manufacturers
businesses are collectively writing off millions of pounds of MRO stock every year. Comparisons between data collected in 2016 and 2023 show that oversight in this area has declined markedly and that stockpiling, undertaken as a reaction to Brexit, the global pandemic and more recently the conflict in Ukraine, has resulted in businesses both tying up cash in inventory and writing that investment off as products age or go unused. Another finding of the report highlights the issue of 'squirrel stores’, which
occur when engineers build their own private stock of MRO equipment. With 55% of respondents declaring this as an issue, the report looks at the trend and suggests some potential solutions. Paul Lynch, chief commercial officer for ERIKS in the UK and Ireland, commented: “Some of the findings, when we compared 2016 data to that found
in the 2023 survey, were a little sobering. The direct link to downtime and the sheer monetary value of stock being written off were really astounding. However, what was positive was that most businesses were not accepting the situation and doing nothing but were exploring potential improvements, such as outsourcing, and looking to improve their operation by recognising the value and embracing technical and supply chain knowledge directly available to them. “The fact is that the whole MRO supply chain, procurement and engineering stores area is one that businesses have tended to ignore in the past. This report, we believe, highlights the danger of doing that.” The report can be downloaded from the ERIKS website.
https://eriks.co.uk SOLSTA AWARDED WITH ISO 13485:2016 ACCREDITATION
Electronic component distributor, Solsta (the new name for Solid State Supplies), has been awarded the ISO 13485:2016 accreditation. The certification is recognised across the world as a mark of quality
and competence. It specifies requirements for a quality management system where an organisation needs to demonstrate its ability to provide medical devices and related services that consistently meet customer and applicable regulatory requirements.
www.solsta.co.uk
6 DESIGN SOLUTIONS MARCH 2024
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