Spare Parts Inventory Transformation for a Major Middle Eastern Food Company

The Customer

A leading food processing company based in the Middle East, operating across multiple sites. Over the past three decades, the organisation experienced rapid growth, resulting in fragmented practices for managing spare parts inventory. With a stockholding valued at over $15 million, the absence of standardised processes and poor data quality had become a barrier to operational efficiency and cost control.

The Challenge

The client faced significant challenges in their spare parts management. Many of their existing processes had not kept pace with the company's expansion. The lack of standardised procedures for cataloguing, stocking and issuing parts led to widespread data inaccuracies and inefficiencies. A substantial proportion of the inventory had no assigned cost, while duplication across factories and missing or outdated records were commonplace.

Analysis revealed that of approximately 60,000 inventory line items, nearly 50% had not been issued in the past three years. Conversely, just 10% of items accounted for 70% of the total annual value issued. The client’s systems, particularly in engineering, procurement and stores, were also found to be ineffective and inconsistent with industry best practice.

Recognising the need for urgent improvement, the client engaged MCP to conduct a full review and develop a strategic roadmap for spare parts process enhancement and inventory optimisation.