What is the MRO Inventory? An Expert Guide

May 10, 2024

You can't earn money from the gas in your car, but without it, your gas won't run. Similarly, there are certain materials, supplies, and services that, although they do not directly give us any value, without them, we won't be able to produce an end product.

MRO inventory, also known as maintenance, repair, and operations, is crucial for a company's procurement spend. MRO inventory is often neglected as it does not directly produce any income. In this blog post, we will provide you with comprehensive information on MRO inventory and more related information. So stay tuned and make sure you continue to read this blog post till the end.

What is MRO inventory?

As said above, while MRO inventory may not be directly linked to the main operations of your business, ignoring it can result in downtime, dissatisfied customers, and ineffective processes.

By definition, MRO stands for Maintenance, Repair, and Operations. It includes all the materials, parts, and supplies that are a part of your business organisation but indirectly contribute to the production process of finished goods inventory.

These inventory supplies are essential for the smooth operation of regular repair, maintenance, and operational tasks. These supplies are not directly used in the production of finished goods but rather in the daily functioning of the business. It consists of various spare parts, gloves, tools, and goggles necessary for repairing manufacturing equipment. Therefore, it is essential for all departments, making it important to optimise MRO inventory levels without excessive stocking.

Examples of MRO inventory include:

Let's understand more about these supplies in a bit more detail:

  • Safety Equipment

    : Masks, ear plugs, gloves, face shields, etc.
  • Office Supplies

    : Personal computers, printers and toners, paper, pens and pencils.
  • Production Machinery

    : Compressors, lubricants, machine oils, light bulbs, valves, bearings, spare parts, etc.
  • Janitorial Supplies

    : Disinfectants and cleaning sprays, mops, buckets, brooms, gloves etc.
  • Laboratory Supplies for Testing

    : Beakers, syringes, test tubes, and scales.

All these supplies fall under the common category of MRO supplies. So it is essential to take control of them, or else the costs can quickly add up over time.

MRO Inventory Management

What do You Mean by Mro Inventory Management?

MRO inventory management involves the purchasing, storage, utilisation, and replenishment of all MRO products. The main goal is to carry out these tasks efficiently and cost-effectively to have the necessary MRO inventory available when needed.

Managing MRO inventory can be useful for improving safety, increasing productivity, reducing downtime, and automating ordering processes.

Since managing MRO can be challenging and time-consuming, Refteck follows various practices that can help you manage your MRO inventory in the best possible way.

Key Objectives of MRO Inventory Management

MRO inventory management makes sure you have all the necessary supplies in hand to run your business operations smoothly. Therefore, it works on three main objectives:

Minimising Downtime and Disruptions:

The main goal of this inventory management is to keep essential parts and supplies available for equipment, facilities, and infrastructure. This will lead to less unexpected downtime, fewer interruptions to production schedules, and a more efficient operation overall.

Reduced Overall Costs:

Effective management of MRO inventory focuses on finding the right balance of inventory levels to reduce costs. Too much inventory ties up capital and incurs storage costs, while running out of critical parts leads to downtime and lost revenue. Through strategies like demand forecasting and ABC analysis, this inventory management aims to ensure sufficient supplies without incurring unnecessary holding costs.

Improved Overall Efficiency:

Efficiently managing MRO inventory involves streamlining processes, utilising technology such as CMMS systems, and automating inventory picking. By optimising these procedures, manual tasks can be reduced, errors minimised, and a seamless flow of supplies can be maintained within the organisation.

Overall, MRO inventory management strives to provide you with production supplies at the right time and in the right location. By effectively managing your inventory, you can gain a competitive advantage over others.

Best Practices Involved in MRO Inventory

Companies often never pay much attention to MRO inventory management as they think it's not as important as the other raw materials. But no matter what you think, MRO inventory is a necessary part of any organisation, and therefore, every business must follow some best practices for inventory management.

Here is a list of the best practices to control your MRO inventory:

Have Clear Inventory Policies:

Having clear inventory policies is essential for effective industry management. It is important to establish guidelines for procurement, receiving, issuing, and disposing of MRO inventory to ensure consistency and efficiency in inventory management practices.

Use Analytics and Forecasting to Predict Demand:

MRO inventory management requires practising demand, just like other effective inventory management strategies. It is important to adjust the amount of replenishment during periods of high and low usage. It is also necessary to keep track of key performance indicators such as material shortages and reorder events to determine the appropriate levels of safety stock.

Conduct Regular Audits:

Regularly perform audits to check inventory levels and identify any outdated, slow-selling, or excess items. This will help optimise inventory and prevent situations of either having too much stock or too little.

Train Your Staff Regarding Supply Chain Management:

To improve your staff's abilities and effectively manage your MRO inventory, they must be aware of in-transit inventory, supply chains, and their responsibilities in controlling MRO inventory. This will, in turn, give you a competitive advantage.

Consider Vendor Management:

It is important to establish strong relationships with vendors to negotiate better prices, maintain on-time delivery of MRO items, and have access to technical assistance as required.

Make Use of Inventory Management Software:

Utilising inventory management software can greatly simplify the process of monitoring inventory levels, predicting consumer demand, and evaluating overall performance.


In conclusion, MRO inventory can be of great help to businesses struggling with keeping an eye on the additional cost of spending on unnecessary activities. Refteck can help you save money by finding cost-effective solutions for your MRO needs. We offer automation for maintenance processes, which includes notifying and alerting the team about maintenance requirements, thereby minimising the chances of equipment failure and unexpected downtime.

More Interesting Blogs, News & Updates