What is MRO?

What is MRO?

MRO or maintenance, repairs, and operations are the pieces of equipment that organizations use to produce their end products. The term MRO is very broadly defined and can encapsulate millions of different skus which can be sourced from thousands of different suppliers. There are thousands of MRO categories and subcategories like cleaning supplies, lab supplies, office supplies, industrial equipment, fixtures, and adhesives which help to create the MRO industry.

Because “MRO” can cover such a large variety of products, it can be difficult to define which products fall under the MRO scope.Organizations may classify MRO products under sub categories like janitorial supplies, office supplies, and lab supplies, but they can also be considered MRO.

Many times, an MRO program is not run by a centralized business unit. Having a managed MRO program through your supply chain department allows for company operations to run smoothly and helps to increase spend efficiency opportunities. It is important for organizations to stay current in MRO:

  • Millions of MRO skus
    Managing the quality of data in a highly transactional segment like MRO involving millions of skus and suppliers can be difficult and requires a strong data platform and constant management.
  • MRO can be difficult to manage
    The majority of a company’s purchasing transactions are indirect materials which only account for a small percentage of the company overall spend. MRO purchasing is time consuming and involves multiple business units across the organization.
  • Simplification of control processes
    MRO procurement practices can be difficult to achieve in this highly transactional and sku based industry. Simplifying inventory control processes are critical to an effective supply chain.
  • You need to invest significant resources
    MRO covers a wide array of products and corporations do not typically invest in the required education or management to have an efficient MRO program.
  • MRO is an ever-changing market
    The MRO industry is constantly transforming. Industry leaders in procurement are moving toward the outsourcing of the entire MRO supply chain. This will change the focus to the overall total cost of MRO.
  • Experts in MRO can have the greatest impact
    Incremental advances in pricing and program adjustments can be had with annual updates to a program but the greatest improvements to your MRO supply chain will be yielded through category experts. CenterPoint has designed a way to create efficiencies and generate savings in this complex category.

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