Parts and supplies are coming and going. So far, so good!
But do you have a firm grasp of your MRO program? If not, you may find yourself waiting for an important piece of your manufacturing puzzle at an inopportune time.
And that’s not helpful.
Your MRO program is what keeps the wheels turning. It addresses your operation’s daily needs, maintaining manufacturing and distribution apace. That’s why it’s so crucial to procurement and to your business.
Imagine that a machine in your production facility goes down. Wait! Where’s that part to get it back up and running? It’s not there!
That can mean a 10-day wait and that kind of delay costs you money. Maybe you don’t want that delay, so you fork out an exorbitant chunk of change to get the part into the plant.
What a waste.
Having a firm grasp of your MRO program means understanding your supply chain and the operational needs it serves. Knowing what you have, what you’re likely to need and when, are key components of having a firm grasp on MRO.
It’s undeniable that MRO has a lot of moving parts, but when you centralize the function, you create increased transparency and greater control. Those add up to a firm grasp.
Especially when your operations are spread out across the country (or the globe) purchasing can be ad hoc and haphazard. Contingency plans (like a sudden need for parts) are overlooked and suppliers are all over the place because no one’s communicating.
Without centralization, your supply chain is fractured. Often, you’ll find that disparate operations use disparate suppliers, even for precisely the same goods or services. Without category standardization, it’s a free-for-all.
That means you don’t get the best deal, because you’ve become small, fractured and siloed. Centralization takes care of that, allowing you to create economies of scale that vendors reward.
Analyze and conquer
When your supply chain has become fractured, analysis is the remedy. De-constructing your spend, categorizing it and working with your people to get a handle of who’s sourcing what from whom helps you put the chain back together as a better version of itself.
Once you know what you’re dealing with, you’re primed for consolidation, market evaluation and earmarking favored suppliers. National contracts may now be established, paving the way to standardized pricing, due to your orders being consolidated into a much larger concern.
At this point, you’re already getting a firm grasp on your MRO program. With vendors serving your entire operation, you have access to discounts which help you control costs and avoid the horror of the missing part that demands heroic feats of spending to avoid delays.
CenterPoint Group’s mission as a trusted procurement advisor is to bring you keen data analytics to help you get a firm grasp on your MRO.
We deliver cost savings by leveraging the power of numbers. Our membership benefits from $850 million of collective, indirect spend. That’s power that helps you get a grip. Contact us.