• Barriers erected between purchasing, engineering, finance and
suppliers effecting loss of value opportunity
• 150+ supply-base creates 80% of all transactions
Why Does the Condition Continue to Exist?
Companies are not willing to invest the dollars necessary to
achieve the “perfect” storeroom; it is too expensive and they
lack the expertise to implement and maintain such an operation.
The perceived value effected by the “perfect” storeroom is not
supported by Finance; therefore the situation continues with
blame for stock-outs, downtime, worker inefficiencies visited
upon Purchasing (not buying enough quickly enough), poor SKU
management (did not adjust min/max, etc.) and Engineering (poor
Each of the three plant stakeholders has a different agenda.
The engineers and plant personnel want the “perfect” storeroom.
Finance wants less investment of dollars as well as a reduction of
the administrative burden, and the plant manager wants productivity and profit (no downtime).
The optimum alternative is the “world-class” storeroom that
is achieved by empowering an expert storeroom manager. This
expert must have world-class storeroom management as its sole
corporate focus in order for world-class status to be achieved.
• Administrative burden reduced to twice per month on consolidated invoices
• Store operations coordinated with plant reliability and mainte-
The bottom line is that achieving a “perfect” MRO storeroom
would be far too costly from an ROI standpoint when compared
to the benefits achieved from a “world-class” operation. World-
class would provide the needed reliability support at optimum.
George Krauter serves as Vice President of Storeroom Solutions,
Inc. He brings more than 50 years of experience in establishing
cost recovery methods for the MRO supply chain. Contact George
at 610-246-6492 or via email at gkrauter@storeroomsolutions.