Maintenance, Repair & Operation purchasing (MRO) is an often-overlooked facet of business which can create enhanced transparency in your supply chain. This side of procurement addresses the everyday needs of businesses, for items as mundane as cleaning products.
But MRO is involving and these days, the model which is emerging is that of MRO-as-service. MRO is a key facet of any supply chain, regardless of the business you’re in, but when managed efficiently, it can contribute to your operations as a value center. Part of that is increasing visibility and that requires supply chain transparency to be actively pursued as part of reforming MRO to act as a service.
What makes the MRO go around is a complex network of suppliers at all links in the chain (large scale suppliers, local vendors, services suppliers, transportation). With a multi-faceted set up like this, optimal MRO performance is rooted in management style.
MRO being approached as a critically important business function and integral to the supply chain moves beyond the purchases themselves, integrating how they’re delivered, how vendors are responding, product quality and sustainability.
These are all important factors in increasingly visibility into your MRO. It’s a critical facet of your business, so treating it that way (and not superficially) is an imperative.
Beyond controlling spending
Software created to provide technological support to MRO have given birth to ERP solutions, so it’s clear that deploying ERP is the right response. But it’s also clear that bespoke solutions addressing specific enterprises and industries are how you can take your MRO to the next level.
MRO is moving beyond controlling spending. The need to innovate, create new ways of doing things and find solutions is driving change in this area at a rapid pace.
Key improvements being offered by next generation MRO management include managing inventory more effectively and efficiently and avoiding obsolete, excess inventory while ensuring that day-to-day items are stocked.
Part of that is understanding the ebb and flow of demand by utilizing data provided by ERP. This creates the ability to foresee and prepare, also stemming the unfortunate phenomenon of maverick spending.
The science of the everyday
Total visibility in your MRO is becoming a pressing priority. While not a profit-centered function, what well-adjudicated MRO does offer is the means to reduce unnecessary cost and stagnant inventory, representing monetary assets tied up in limbo.
Your everyday purchasing needs have a powerful ally in MRO which reaches beyond controlling spending to give you a penetrating view into a complex supply chain. That’s the science of the everyday, making MRO a strategic function which contributes to the bottom line and efficiency.
At CenterPoint Group, we’re a trusted procurement advisor, applying the science of the everyday to your company’s daily purchasing needs.
By deploying data analytics and transaction analysis, we create exceptional opportunities for you to streamline your operations, making your procurement functions efficient and cost-effective.
Leveraging $850 million of collective, indirect spend is part of how we do it. Contact us.