Everything you might need for run of the mill maintenance, repairs, and operations.
MRO procurement strategy and best practices help a business consolidate MRO data and retain appropriate MRO supplies to keep the operations running smoothly. Although, the perfect procurement process is a myth, optimising supply chain, managing supplier relationships, digitalization, and improving procurement efficiency from time to time after evaluating the efficacy of current processes brings goodness.
While indirect spend are mission critical to production reliability and facilities management, even the most sophisticated procurement organizations are only managing half of their indirect spend at best. This is because there are hundreds of subcategories of indirect and tail spend, each with nuanced characteristics, which hundreds of individual buyers spread across the organization are purchasing!
As an example, here are a few items you should include on your MRO:
Spare parts for manufacturing equipment, i.e. pumps, belts, valves;
Repair tools or equipment for on-going or scheduled interventions;
Consumables, i.e. lubricants, sealants, gloves, batteries, protection gear, paper;
Safety equipment, i.e. fire extinguishers, carbon monoxide detectors.
We do a thorough analysis of several key elements, before developing and implementing a MRO procurement strategy. Some of the aspects we consider are:
Who are the critical and/or high-risk suppliers?
Which parts are single source, and critical?
Are the buying prices among the best in the market?
Which suppliers contribute most to the cost of poor quality?
How has supplier performance been on other parameters like on-time delivery?
What are the supply chain risks the organisation is exposed to?
Root cause analysis of production stoppages
Included in our MRO procurement strategy is:
Improving vendor management
Reducing redundancies
Developing a base of preferred suppliers
Finding ways to minimize the need for unplanned or on-the-spot purchases, such as when a piece of equipment goes down
Paragon Results can help to increase the productivity of a factory or manufacturing plant, decrease overall costs and minimize downtime when equipment breaks or needs updating.
We can provide your organization with the expertise to develop and implement a carefully crafted MRO procurement strategy that will help you gain control of costs, maintain compliance and standardize your purchasing procedures. By facilitating transparency, our MRO sourcing consultants can increase indirect spend visibility, identify areas of waste and remove weak links in your supply chain.
Contact us to learn more about our strategy.
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