MRO Software has announced a marketing alliance with inventory optimization specialists Xtivity. The alliance will enhance the service offering of inventory management solutions for MRO Software customers.
MRO Software will now offer Xtivity’s Inventory Optimizer (xIO) service as an extension of its asset and service management solutions.
xIO examines a company’s transactional inventory data and calculates the appropriate Order Point and Order Quantity for every line item in an M-R-O inventory, using a scientific approach with proven statistical methods. This maximizes fill rates, reduces total inventory cost, and prevents the ongoing purchase of items that will become dead in the future.
“Recent ARC research identified MRO Optimization as a very important asset management trend that delivers significant benefits,” said Houghton LeRoy, research director at ARC Advisory Group. “The combined MRO Software and Xtivity Inventory Management and Optimization solution is positioned as an easy way to achieve MRO Optimization and the associated benefits.”
“A typical company could have thousands or even hundreds of thousands of line items in their inventory. They may be able to manually review one percent of these items to see if Order Points and Order Quantities are accurate on an annual basis,” said Ned Meyer, vice president, Xtivity. “The xIO, in contrast, examines 100 percent of these items each and every month, and optimizes Order Points and Order Quantities accordingly. This typically results in savings of up to 10 percent of total inventory value that can be driven directly to the bottom line.”
MRO Software has been using the xIO service technology for several years. This marketing alliance reflects the growing demand for the complimentary value offered by the two company's flagship offerings; Xtivity’s xIO and MRO software’s Maximo Enterprise Suite (MXES).