Title of the Invention
System and method for dynamic management of Industrial spares. Field of the invention
A system and method for liquidating unused excess, non-moving and obsolete inventory. In this invention the data for each component, equipment and material are recorded and the method comprises of providing a bridge between identification of excess, unused parts in one end and liquidating/supplying the demanded parts on the other end. Background of the invention
In any manufacturing or production unit a routine service activity for maintenance has to be carried out at various stages. Manufacturing industries procure large quantities of materials, spares and equipment which are utilized in the process of production, such as design, implementation, and maintenance. MRO (Maintenance, Repair, and Operation) supply plays a critical role in production lifecycle. The manufacturing industries hold their unused excess MRO stock for a long time in the warehouse. Every industry procures such inventory at a high cost and they scrap the inventory after a long time without using it. In such cases the material handling and maintenance cost for the unused inventory in the industries incur will also be huge and the realization value for their scrap will be comparatively less.
It is always time consuming and not easier to segregate, also controlling the cost for equipment requires careful management of the MRO spare parts inventory. These scenarios are repeated time and time again in many maintenance operations such as a part should be available in the inventory but isn't there because it has been used on a previous job, the part is the wrong part for the job because the Equipment Bill of Material is wrong

and part is no longer service-ready when requested because it has been improperly stored in the warehouse.
All of these situations can result in additional cost because now the request for the part has become an emergency and the purchase will need to be expedited. These three examples seem to be the most common situations that companies encounter and are completely avoidable by implementing some basic inventory management practices.
Monitoring MRO supply chain is a core decision making process in any business to plan, allocate and manage resources. MRO spare parts range from simple to complex replacement parts, core components, general components, equipment, machineries, devices and tools which further vary in mechanism, functions, dimensions and other characteristics. These parts could be manufactured by the company inhouse, but it is mainly sourced from outside for two important reasons.
1. To support the efficiënt functioning of the plant a huge collection of data and potential information related to maintenance is provided in decision making. Acquisition of information relating to maintenance of a manufacturing plant or any operation is complex. Recording and retrieval of such information is vital for achieving economie efficiency. Traditional method of data retrieval requires volume of manual searching of records and documents.

2. Exhausting the excessive stock is a time and labour-intensive process. This also results in wastage of new and quality products that are kept as stock in the warehouses.
3. Therefore there is a need for vital data acquired through different manufacturing units, accessible and available for real-time procurement process. So that the process creates an opportunity for potential end users to compare and procure items in real time, as for any enterprise the operational goal is to minimize the dependability on stock and by reducing the dependability on the stock not only helps in waste minimization, better realization for industries when compared to scrap but also in environmental protection like soil contamination, environmental degradation, global warming etc.
Summary
The present invention is a system and a method for making a cloud based procurement of excess, unused obsolete inventory parts between the end user and service provider where the present invention also capable of searching the exact demand on a material from other cloud based networking platform thereby improving the communication about the availability of excess, unused obsolete inventory parts to the absolute end user. If a end user selects a material from a cloud based networking then it creates a material demand on a virtual marketplace where material demand is a combination of material name and volume so that the inventory is measured by parts in volume so that the software platform is a virtual place where the user can buy the material in a predetermined volume. After the

purchase the volume of the inventory is reduced. Of the service provider end, this present invention is using an analyzer that can add the requirement value from each customer or end user and enable the service provider to reduce the volume of the inventory. The end user identifies the availability of the material in a local cloud network then the end user initiates an interest signal to the service provider for the material then the service provider sends the signal through acceptance for physical verification of the material where either end user/service provider shall perform quality check or quality certifications through third party certifications or by their own effort . The cloud based network updates the interest on the material between the end user and service provider thereby making it competitive procurement on a cloud based network. Further if the service provider desires the material to be withdrawn then corresponding market value of the material is increased in the cloud network respectively the demand for the material on the cloud based network is also increased. Description of the drawings
Fig 1. illustrates the present invention block diagram. Fig 2. illustrates the network system foliowed in the present invention. Detailed description of the present invention
The present invention is a system and a method for making a cloud based procurement on excess, unused obsolete inventory parts between the end user and service provider where the present invention is also capable of searching the exact demand on a material from other cloud based networks thereby improving the communication of availability of excess, unused obsolete inventory parts to the absolute end user. If a end user selects a material from a cloud based network, then the material demand on a market and availability of the

material in a local cloud network then the end user initiates an interest signal to the service provider for the material then the service provider sends the signal for physical verification of the material. The cloud based network updates the interest on the material between the end user and service provider thereby it makes the competitive procurement on a cloud based network. Further if the service provider desires the material to be withdrawn then corresponding market value of the material is increased in the cloud network respectively the demand for the material on the cloud based network also increased Example 1:
While procuring a boiler (which happens to be an asset for the Power Industry) worth 1 crore, the vendor of the boiler also supplies MRO spare for the boiler worth rupees 15,00,000. It has been observed through primary surveys that nearly 60% of the MRO spares corresponding to an asset lie idle in the warehouse during the asset's life time. This leaves the firm with 2 problems,
1. The MRO spares tying up or holding the warehouse space
2. The firm's capital is locked in these idle MRO spares
The above problems are solved from the present invention such that
1. Listing of components MRO spares for the boiler worth rupees 15,00,000. And entering this information online makes it available for the service provider and end user. The online cloud network consists of a database of spare parts and its marketing value.

2. Analyzer for calculating the market demand of a material on local cloud based network and other cloud based network sends signal to end user and service provider aboutthe demand.
3. The end user sends the signal to buy the material through online cloud based network database. On the receipt of end user's interest, it sends an notice signal to service providers having the similar material inventory. Meanwhile the analyzer in the database checks and lists the market demand for the material to both end user and service provider.
4. Then the service provider who is picked by the end user communicates the acceptance for physical inspection of the product for checking by means of sending signals to the service provider.
5. If the end user satisfied from the physical inspection of the material, then end user sends the signal interest to buy the material as well as making the payment.
6. Once the material is sold then the database updates the availability in stock as well as the market demand on the material.
Since firms spend their energy and time to market the products which they produce, they do not pay much attention to the problem of idle MRO spares. A firm having assets around 50 crores would roughly have MRO spares worth rupees 3 crores lying idle in their warehouse. Example 2:
Issue: Industrial parts used in the initial device configuration do not find an application in the newer versions of the devices. In some cases, even the industrial device becomes obsolete due to adoption of another device.

The present invention provides solutions to the manufacturers and industries, which hold
their excess stock for a long time in the warehouse. Every industry procures their
inventory at high cost and they scrap the inventory after a long time without using it. In
such cases the material handling and maintenance cost that the industries incur will also be
huge and the realization value for their scrap will be comparatively less.
The present invention reckons a process to reduce inventory volume thereby increasing
the revenue from unused, idle MRO spares by identifying appropriate end users for the
same. This would enable the firms to free up the warehouse space. Moreover, they would
be able to genera te revenue from their idle assets, which would pro vide them with a source
for investment. From a end user's perspective, in other aspect the present invention would
provide unused quality spares at a competitive market price.
In other aspect of the present invention a virtual marketplace where material demand is a
combination of material name and volume so that the inventory is measured by parts in
volume so that the software platform is a virtual place where the user can buy the material
with its volume.
Example 3
The material is wasted nut or a fault nut in a ware house having its dimension of 2cm long
and 3 cm wider and hexagonal in shape it occupies approximately 60 square meter of area
in which 1000 numbers fault nuts are there in which the enterprise wants to sell the entire
volume. So virtual platform assigns a volume, value and material name in a virtual
database.
Further it analyzes the market value of such type of nuts in a cloud network and enables
the end user and service provider to add their requirement. Where the end user adds his

requirement as fault nut with volume value and the service provider adds his requirement as fault nut with total inventory volume. Where the volume of the nut is equal to the volume of the service provider then the software platform informs the service provider of its demand about the nut and paralley it updates the market value in the cloud network. Otherwise the platform adds the total number of end user requirement and correspondingly updates the service provider accordingly.
This invention provides a solution to liquidate the unused inventory parts by the following steps as per Fig 1.
a. Material template- material template is a file that serves as a starting point for a
material. When you open this template, it consists of a pre-formatted set of instructions.
For example, the template in Microsoft Word/Excel/PowerPoint that is formatted as a business letter. The template would likely have a space for entering name and address in the upper left corner, an area for the recipient's address a little below that on the left site, an area for the message body below that, also can collect material information like part number, technical spec, live images of the item, volume, UOM, data sheet in Standard form and a spot for your signature at the bottom. when saving a file created with a template usually prompted to save a copy of the file, so that there is no need to save over the template. Templates can either come with a program or be created by the user. Most major programs support templates, so if creating similar documents over and over again, it might be a good thing to save one of them as a template. After

the materials all the information is listed with this template the listing are
carried on.
Material listing- MRO items include industrial equipment such as compressors,
pumps, valves and plant upkeep supplies such as gaskets, hearings, belt, raw
materials, lubricants, repair tools etc. The functions, dimensions and other
features of each and every component are listed.
Description analysis - Part numbers, source, origin and names of respective
manufactures are identified and segregated from the unstructured free text
descriptions. Once segregated, the names and part numbers are corrected and
standardized, ensuring each unique name and part number is maintained in one
consistent format throughout the entire database.
Cataloguing- A material catalogue is a complete list of spare parts and materials
required to meet the operational and maintenance requirements of the business
during procurement. These items include Spare parts (Rotatable), Raw
materials, General consumables.
The catalogue is usually indexed by a "Material Number" and captures all data
required to uniquely identify the material to ensure the correct material is
ordered and the material is correctly managed through its lifecycle. This could
include the following data fields:
Physical inspection- if the end user is interested to procure a material then the
signal from the cloud based network for physical inspection that signal will send
to particular service provider. Then the physical appearance of the product is

inspected by the end user to their satisfaction. The quality certification shall also
be highlighted in the platform either by third party or own team.
Marketing- for the listed product in the platform marketing effort in both online
and offline shall be performed for branding, identifying end users, special offer
promotion.
f. End user identification- the list consists of the interested end users of the
materials.
g. Payment transaction- if the inspection is completed then the payment
facilitation is made.
h. Repacking & Logistics facilitating - if the end user is interested over the material
repacking and logistics support shall be provided.
In this aspect, the input list of the inventory may include input intra-enterprise lists and
input inter-enterprise lists of available inventories. The inter-enterprise lists establish
relationships between various enterprises by identifying selected enterprises that are
willing to allocate and share compatible parts with other enterprises utilizing the present
invention.
A central parameters file is also input into the planning engine for automatically identifying
those parts in inter-enterprise lists of surplus inventory that can be allocated amongst
other enterprises. And database is created from the list and is made available to the end
user and service provider.
The compatible parts may be identical parts, equivalent parts, non-identical substitute
parts, up-level parts, equal-level parts, down-level parts, or even combinations thereof. The

user may be an enterprise, a plant, a factory, a manufacturer, a supplier, a distributor or a storage facility, while the identifier of the requested part may be a part number, a catalog number, a catalog name, a part name or a subpart name.
The common software platform is made between the end users and the service providers that can communicate to the cloud and capable of being used as a software compatible to user end of their devices.
Thus the common software platform integrated with end users, service providers, and database wherein the method of improving the procurement of unused spare parts or MRO of an enterprise will be consisting of a common software platform that can perform,
a. Material template - material template is a file that serves as a starting point for a
material. When you open this template, it consists of a pre-formatted set of
instructions.
b. Material listing - MRO items include industrial equipment such as compressors,
pumps, valves and plant upkeep supplies such as gaskets, lubricants, repair tools
etc. The functions, dimensions and other features of each and every component
are listed.
c. Description analysis - Part numbers, source, origin and names of respective
manufactures are identified and segregated from the unstructured free text
descriptions. Once segregated, the names and part numbers are corrected and
standardized, ensuring each unique name and part number is maintained in one
consistent format throughout the entire database.

d. Cataloguing - A material catalogue is a complete list of spare parts and materials required to meet the operational and maintenance requirements of the business. These items include Spare parts (Rotables), Raw materials, General consumables.
The catalogue is usually indexed by a "Material Number" and captures all data required to uniquely identify the material to ensure the correct material is ordered and the material is correctly managed through its lifecycle. This could include the following data fields:
e. Physical inspection- if the end user is interested to procure a material then the
signal from the cloud based network will send signal to all the service providers.
Then the physical appearance of the product is inspected by the end user to
their satisfaction.
f. End user identification- the list consists of the interested end users of the
materials.
g. Payment transaction- if the inspection is completed then the payment is made.
After payment the material market value increases.
In this aspect, the input lists of the inventory may include input intra-enterprise lists and input inter-enterprise lists of available inventories. Allocation rules are associated with both the intra-enterprise list and the inter-enterprise lists of available local inventory. The inter-enterprise lists establish relationships between various enterprises by identifying selected enterprises that are willing to allocate and share compatible parts with other

enterprises utilizing the present invention. Then finding the interest of the end user for a
material and forwarding the interest to all the service providers.
The service provider enables the end user for an inspection of the material interested.
Although the present invention has been described with reference to particular embodiments, workers skilled in the art will recognize that changes may be made in form and detail without departing from the scope of the invention as defined in the claims that follow.

We Claim:
1. A system for liquidating the unused MRO parts and obsolete inventory of an enterprise consisting of
a compatible user device in which a software platform dealing with the
enterprise information is installed/accessed from cloud at end user end
a compatible user device in which a software platform dealing with the
enterprise information is installed/accessed at service provider end
a cloud based network is made available with a software platform dealing with
the enterprise information is installed/accessed
a communication interface connecting cloud network, service provider, end user.
a communication channel that can access the other cloud network for searching
and analyzing market demand is made between the local cloud network and
other network where procurement database is stored.
an analyzer can access the end user requirement
- wherein the end user is accessing the database of material that are placed in
MRO unused database by the service provider of an enterprise where the said
end user selects a material to buy through the software platform which allows all
the service providers to view the current market value from said other cloud
network and end user selects the service provider by initiating physical
inspection signal to the service provider.
- wherein the analyzer processes the interest of end users accordingly it processes
the volume of the inventory.

2. The system for liquidating the unused, excess, obsolete, non-moving MRO inventory of an enterprise as claimed in claiml, wherein this software platform is installed/accessed at every user end.
3. The system for liquidating the unused, excess, obsolete, non-moving MRO inventory of an enterprise, wherein the software platform makes a communication channel to the end user, service provider and other cloud based database system.
4. The system for liquidating the unused MRO parts and obsolete inventory of an enterprise, where the software platform is bidirectional to the cloud database.
5. The system for liquidating the unused MRO parts and obsolete inventory of an enterprise, where the software platform is further characterized such that it can process the requirement of all the end users in the cloud network and parallely it updates the total volume of the inventory of an enterprise in the cloud network.
6. The system for liquidating the unused excess, obsolete, non-moving MRO inventory of an enterprise, wherein the analyzer processes the volume of the inventory along with database of material.
7. A method for liquidating the unused excess, obsolete, non-moving MRO inventory of an enterprise consisting of

a. Material template
b. Material listing
c. Material Description analyzing
d. Cataloguing the material
e. Marketing (online/offline)
f. Physical inspection of the material
g. Identifying End user
h. Payment transaction between the end user and service provider
i. Repacking and Logistics facilitation - wherein inputting the material MRO parts listing is carried on a network of the database after which enabling the end user to select a material of interest to buy along with displaying the current market value of the product by fetching the market value in other database network if the end user sends the signal by selecting a material then the payment is made between the end users and service provider after the physical inspection of the product.