Naleem Bukari, Founder and CEO of CODA TECHNOLOGY SOLUTION, quotes that so much changes have happened in the past 10 years, especially after evolution of Digitalization across varied sections of life!
- From Vintage phones to Smart phones
- From Barter System to Digital Economy
- From Traditional Book Keeping to ERP Management
Industrial challenges and how we help you in digitization
Naleem lists two major industrial challenges
1) unused excess inventory
2) Predictability of equipment failures?
Today, in this digital age, lot of technologies exist like IOT, industry 4.0, Block Chain, Artificial Intelligence, and all these technologies can be put to good use to meet these challenges of today and tomorrow.
MEA (Middle East/Africa) Cement Industry Overview – MRO
In the Middle East and African regions there are about 350 plants in the cement industry. MRO inventory value of those 350 plants are US $9.8 billion every year. Now the question is, do we consume the whole inventory? No!! is the reality is that about 10% of this value becomes a dead /obsolete inventory. Therefore every year around US $1 Billion worth of MRO spare parts are found to be excess, unused and idle. These are huge costs that are associated with MRO spare parts inventory.
This problem occurs not only to the industries or organization but also to the industrial spare parts dealers/traders who procure tons of products in their warehouse.
Reasons for excess Idle inventory in the warehouse
Product manufacturing involves a lot of resources like Manpower, utilities, raw materials, Capital investment, and other natural resources like water, electricity, etc.
For example to manufacture a bearing we need- manufacturing.
We additionally consume other resources like 9.48 M gallons of water
- 48 M gallons of water
- 6265 MT CO2 emission
- A 10 Million of family electric consumption
Un-used Excess Inventory – Current Practice
Out of 349 plants, US $ 1billion inventory is left idle. Here the realization of your excess un-used idle spares is found to be US$ 100M at end of the year. So you are losing a huge value both in terms of money and resources, without even using these spare parts.
These are just the tip of the iceberg points that shows how excess idle spares impacts the manufacturing, resources, and money. It also affects the industry in the following ways-
- High Maintenance cost
- Blockage of working capital
- Inefficient utilization of warehouse space
- Generates less or no revenue
- As time depreciates the value of your unused excess materials gets depreciated but the different resources utilized in the manufacturing of the process remains idle
What can be the Solution?
Is there any solution for your Inventory Management especially that of excess, idle, and unused spare parts?
Naleem says with strong ‘Yes’ to the possible potential solutions that can transform the way the industry looks at MRO spare parts from now on. Using Smart solutions that can solve this big problem, is what has been our focus.
We, CODASOL, with our expertise in inventory management and our partner V-Line Europe with 40+ years knowledge of supply chain management, has embarked on this global partnership with an objective to solve the major pain points in this MRO industry.
An online B2B E-commerce portal that will act as a digital marketplace to push out all your excess, idle inventory and can also help you to find the buyer with our global network and reach. This platform not only can support your business to generate revenue from these idle/excess inventory, but also will help in creating a circular economy with networks created in industries, quicker lead time to procure/source materials, using limited resources and not wasting those precious resources, and saving millions and billions of dollars in the process.
