Read This If You've Had a Large MRO Inventory Write-Off
If you've just absorbed a large MRO inventory write-off, you're not alone — it happens at almost every asset-intensive manufacturer eventually. The usual causes are predictable: no owner, duplicate parts, no plan for new or retiring equipment. The fix is too. Here's what actually works, and how one 10-plant manufacturer turned a coming $30M write-off into a self-funding turnaround.
Your Growing Inventory May Not Be a Supply Chain Problem
Your inventory problem may not be a supply chain problem
Recently, I worked with a manufacturer that was experiencing rapidly growing inventory levels across raw materials, WIP, and finished goods.
Leadership initially believed the supply chain organization had lost control.
After a rapid assessment, we found something very different.
The supply chain team was performing exactly as designed. The real drivers of inventory growth were decisions being made elsewhere in the business:
• Product portfolio expansion without full visibility into working capital impact
• Optimistic new product forecasts that became inventory commitments
• Service level expectations that required additional inventory coverage
The lesson was simple: inventory is often a symptom. The root cause is frequently found in product strategy, forecasting discipline, and cross-functional decision-making.
Before asking what your supply chain team is doing wrong, ask a different question:
What operating conditions have we created that make this outcome predictable?