Paragon helps a company figure out the most cost-effective way to purchase the supplies its needs for daily operations and on-going repairs. The right combination of technology and process rigor is what has really enabled our success in this space.
Every organization is looking at ways to intelligently reduce costs – without creating an undesirable level of risk. One of the key focus areas in MRO cost reduction is always procurement and inventory cost reduction, where opportunities for optimization exist in virtually every company. It’s only a question of whether you can actually identify them, how well and quickly you uncover them and how fast you can implement the changes that can deliver tangible savings.
As the area covers a significant number of products and materials, measurement and price validation can become challenging, especially if your supplier’s pricing methodologies are not transparent — and that is where Paragon Result’s MRO procurement strategy can assist you.
Whether conducting project work or evaluating your processes as part of a fully integrated supply program, our team analyses the end-to-end supply chain and the relationship between data maintenance, equipment performance, spare parts purchasing and management patterns.
The team then uses this information to identify pain points and recommend value-adding enhancements that improve your operational reliability and cost effectiveness.
Reasons to have MRO procurement strategy in place that adds up to concrete savings:
- Asset reliability impacts productivity or stability of service
- Enterprise asset management solutions mitigate the severity and frequency of downtime events to a negligible margin
- EAM and scheduled maintenance allow businesses to control when, how and why they power down instead of waiting until a failure takes them offline for an indeterminate amount of time
Here are some MRO Procurement strategies and best practices, that provide significant ammunition to effectively manage this category –
- Cleanse data
- Cut complexity
- Support suppliers
- Map processes
- Align functions
- Put cost over price
- Measure supplier performance
- Bridge capital MRO buys
- Manage tight inventory
- Focus on hard savings
For all it does and all it impacts, MRO management deserves greater appreciation from business leaders who want to get serious about all aspects of asset reliability. Once organized onto a user-friendly and actionable platform, MRO operations will finally fall in step to reduce procurement costs and bolster any scheduled maintenance plan even further.
Connect with us for a robust MRO procurement strategy.