MRO Parts Inventory Audit

Case Study: Industrial – Automotive Manufacturer

An automotive manufacturer that produces, markets, and distributes vehicles and vehicle parts with 28 assembly plants across North America.

REQUIREMENT

The automotive manufacturer’s issues that required resolving were:

  • The inventory of more than 6.5 million parts had an unacceptable accuracy rate
  • All parts were located in automotive manufacturing plants spanning North America
  • In-house employees could not be pulled away from other tasks to fix accuracy issues
  • Due to union regulations, the cost could not exceed current, in-house inventory costs

SOLUTION

RGIS worked with the automotive manufacturer to complete the following:

  • Experienced RGIS teams completed two proof-of-concept inventories, to meet union regulations
  • The inventories resulted in lower costs and more efficient service
  • Once the bid had been accepted, RGIS teams got straight to work correcting accuracy issues in the MRO inventory
  • Inventories were completed at the auto manufacturing plants over the weekends, to avoid disrupting regular operations

RESULTS

By outsourcing the full MRO inventories to RGIS, the automotive manufacturer had:

  • Completed full MRO inventories at 28 plants across the continent, at a lower cost than the in-house alternative
  • RGIS auditors scanned 6.5 million pieces using pre-programmed handheld devices
  • MRO inventory accuracy increased from a rate of 80% to a rate of 93%