How IMA Saved a North American Manufacturer $1.2 Million

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A major North American defense contractor began their project with 150 maintenance team members, 18,000 SKUs, and an on-hand inventory value of $9.2M. Inefficiencies in managing MRO data and indirect materials inventory resulted in high procurement costs and wasted time.

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Challenges

Before working with IMA, the client faced several critical issues. Their storeroom organization was inefficient, making it difficult to locate necessary items. Overstock issues and a lack of spend leverage resulted in excess inventory and higher costs. Additionally, a significant amount of time was wasted searching for items, further impacting productivity. Managing a large, multi-site project with multiple work streams also proved to be ineffective, creating further inefficiencies.

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How IMA Helped

IMA partnered with a leading MRO distributor to develop a customized solution. The MRO distributor redesigned the storeroom to improve organization and accessibility. IMA conducted a comprehensive MRO data cleansing process, standardizing, capturing, and cleaning part data to enhance accuracy and usability. To ensure long-term data governance and maintain data integrity, IMA implemented uManage Pro, providing the client with better oversight and management of their MRO operations.

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Results

The implemented solutions led to significant cost savings for the client. Procurement expenses were reduced by $111,300, while maintenance costs saw a substantial reduction of $907,500. Additionally, eliminating duplication resulted in further savings of $230,000.