MRO (Maintenance, Repair, and Operations) procurement strategy is a comprehensive approach to managing the purchase of goods and services related to the maintenance, repair, and operations of a business. It involves the use of best practices and processes to ensure that the right products and services are acquired at the right time, at the right price, and with the right quality. The MRO procurement strategy can help businesses reduce costs, improve efficiency, and increase customer satisfaction.
However, for procurement leaders looking to strategically control spend; maintenance, repair and operations (MRO) procurement can get pushed to the wayside. MRO is a vast category with a high degree of complexity that can hamper cost-optimization initiatives. Also, lack of spending visibility is another challenge that MRO procurement faces today.
The good news: Our team at Paragon collects information to identify pain points and recommend value-adding enhancements that improve your operational reliability and cost effectiveness. With our right plan in place, MRO procurement strategy, sourcing and management can make a significant impact on the bottom line.
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, etc.
MRO procurement strategy and best practices help a business consolidate MRO data and keep appropriate MRO supplies to keep the operations running smoothly – optimising supply chain, managing supplier relationships, digitalization, and improving procurement efficiency from time to time after evaluating the efficacy of current processes brings goodness.
Some key areas we focus on:
- Streamline procurement with preventative maintenance
- Reliable partnership between verified suppliers
- Setting up and monitoring KPIs
- Create a standard procurement policy to centralise crucial Information i.e. to recognise Lost, misplaced, and redundant inventory
Even though MRO is traditionally focused on managing the indirect spend, it gained increased attention as businesses continue to look for ways to reduce costs. MRO procurement strategy is about total cost of ownership. Therefore, we help clients go after operational improvements in addition to price reductions.
To learn more about how Paragon MRO procurement strategy can help your organization achieve greater transparency and measurable savings with significant cost reduction, enterprise-wide, contact us today.