How our stock profiling experience saves your bottom line
Our customers can relate: In the Eastern Cape, the business pressure is intense. The truth is that manufacturers simply cannot afford lengthy downtimes when their production lines experience breakdowns. That’s where our experience in Maintenance, Repair and Operations (MRO) stock management comes in.
Our customers can relate: In the Eastern Cape, the business pressure is intense.
The truth is that manufacturers simply cannot afford lengthy downtimes when their production lines experience breakdowns.
That’s where our experience in Maintenance, Repair and Operations (MRO) stock management comes in.
It’s a fine line to tread, because some products move every month. Some move once a year. Some sit quietly for a long time, then become urgent because one machine has stopped doing what it should.
You see, on a stock report many of these items can look the same: Low movement. Low demand. Possible overstock.
In practice, they can mean very different things. A product may have low movement because it is no longer needed, it was bought for a once-off project, or the machine it protects has behaved for years.
These are different stock decisions.
At Haslop & Mason, our stock profiling experience starts with how products behave. We group items by how often they sell and how much the quantities change.
That gives us four useful demand patterns: smooth demand, intermittent demand, erratic demand and lumpy demand.
Smooth demand is the easiest to understand. These products sell regularly and in similar quantities. They may be linked to repeat customer requirements, panel builders, OEMs or system integrators.
With smooth demand, history is useful. Reorder points, minimum levels and maximum levels can be set with more confidence because the product gives a clearer pattern.
Intermittent demand is less frequent. These products sell occasionally, and the quantities are usually fairly similar when they do move.
They need a different type of planning. The demand is real, yet it does not appear every month. Treating these items like regular movers can create too much stock. Ignoring them completely can create service problems.
Erratic demand behaves differently again. These products may sell often enough, but the order quantities change. One month the order is small. Another month it is much larger.
A few customer orders can distort the picture quickly. This is where project demand needs to be separated from normal MRO demand.
One project can make an item look like a regular stock item. Once the project is finished, the demand may disappear.
Lumpy demand is the hardest to manage. These products sell rarely and in unpredictable quantities. They often sit quietly, then become urgent during a breakdown, repair or specific operational need.
A lumpy item cannot be judged by movement alone. The consequence of no stock also matters.
This is why our stock profiling is practical. It gives our team a better way to question the stock list.
- Should this item be stocked?
- Should it be ordered only when requested?
- Was the demand linked to a project?
- Is there repeat MRO demand?
- Is the product still current?
- What happens if it is unavailable?
- Is capital protecting service, or sitting in the wrong place?
Stock availability matters to our customers – and our answer is: better stock decisions. That is where systems help; they give the history and the team gives the customer context.
Our stock profiling connects the two.
Discover how our customer-first approach can elevate your operations. Reach us on 041 451 0935 or email us at sales@handm.co.za