POWER May 2023 - 33

OPERATIONS & MAINTENANCE
2. This graphic shows the multiple technology options at your fingertips with Optimas' OptiTech Inventory Management Solutions. Courtesy:
Optimas Solutions
ment processes at a pace that's comfortable
for the company and personnel.
How a Digitized System Helps Cut
Costs
An Industrial Machinery Digest study
found that most companies devote 20%
to 40% of their overall working capital
to inventory. With such a sizable percentage
of funds invested in inventory,
keeping those costs down is critical to
maintaining cash flow. Automated inventory
management facilitates better
stocking levels, less excess and obsolows
you to capture and use data and
modeling based on real-time and historical
consumption patterns. The best
forecasting uses a mix of quantitative
(such as past numerical insights and
current market demand) and qualitative
data (such as market trends, product
lifecycle, competitive landscape,
etc.) to guide more accurate inventory
management decisions. This foresight
allows decision-makers to see where
demand and usage come from, and
plan accordingly. You can see where
fulfillment levels are and adjust proAutomated
inventory management facilitates
better stocking levels, less excess and
obsolete (E&O) inventory, greater control
over cash flow, and fewer people needed to
manage stock.
lete (E&O) inventory, greater control over
cash flow, and fewer people needed to
manage stock. A tech-enabled solution
can reduce costs in many ways and power
companies are starting to understand
that. Among the benefits are:
■ Better Forecasting Through Technology.
Using RFID technology to manually
or automatically submit replenishment
orders means that inventory may be
monitored in real-time. As a result,
procurement and supply chain professionals
can manage inventory levels to
production requirements.
■ Working Smarter with Business Analytics.
Technology available today alMay
2023 | POWER
duction up or down based on demand,
parts availability, and lead time.
■ Refocusing Human Capital. With a
manual scanner or an automated replenishment
program, it will take less
time, teammates, and process to
maintain appropriate inventory levels.
These productivity gains drive soft
costs down and offer an opportunity to
reallocate people to roles with greater
impact on production.
Automating Your Inventory
Management System
To get started, identify the core pain points
of your current solution and map them to
the benefits a digitized system provides.
www.powermag.com
Here are the top five questions to ask:
■ On a scale of 1 to 10 (with 10 being
the best) how accurate are your part
counts?
■ How long does it take to go from
count to replenishment?
■ Has production slowed or stopped because
of low inventory or stockouts in
the last 12 months? If so, was the plan
to elevate production to the planned
level successful?
■ Has E&O inventory negatively impacted
your company's balance sheet in
the last three years?
■ Is your current supplier doing anything
to improve your inventory management
process?
Answers to these questions are a
first step toward achieving the benefits
associated with a modern inventory
management solution. Digitized inventory
management can make your supply
chain more efficient and resilient to
disruptions, develop higher visibility into
your part consumption, improve forecasting,
and help you reallocate resources to
more productive responsibilities.
Tech-enabled inventory management
(Figure 2) has promising benefits for the
global power generation industry. Among
them are savings in time from a labor
and administrative standpoint, increased
supply chain assurance, and greater confidence
in data-driven decisions. Today's
supply chain solutions and the right partner
to plan, implement, report, and fulfill
orders can elevate efficiencies and help
companies be more competitive in a
very demanding marketplace. ■
-Paul Przyby is senior vice president
of Sales and Marketing with
Optimas Solutions.
33

http://www.powermag.com

POWER May 2023

Table of Contents for the Digital Edition of POWER May 2023