7 Ways to Get Higher Returns on MRO Purchasing

7 Ways to Get Higher Returns on MRO Purchasing

1

Mitigate challenges before they occur.
MRO procurement can be complicated. From safety products that protect workers to janitorial and replacement items to specialized goods, the list of MRO sub-categories is diverse. Challenges can be mitigated by:

• Accurately forecasting MRO supplies so products are on hand when they’re needed.

• Managing inventory to ensure each facility has the proper products and supplies to keep the business running efficiently. 
2
Take a proactive approach to reducing operational budgets.
Maintenance, repair and operations (MRO) are essential to keep a business or facility running efficiently. With so much money at stake, it’s a critical category to manage efficiently. A proactive approach:

• Reduces operational budgets and inventory costs, which are two of the biggest business pressures facing MRO procurement and supply professionals.

• Provides better visibility into inventory and costs, better manages MRO and enables a higher ROI.

*Source: Omnia Partners
3
Trace Departmental Spend with Analytics
MRO purchasing is time consuming and involves multiple business units across an organization. Informed purchasing requires compiling data from each business group that enables:

• Comprehensive analysis to accurately determine where and how the MRO budget is spent.

• Benchmarking, comparisons and spend history to allow data-driven decision making.  
4
Reduce Inventory While Increasing Service Levels
Controlling costs for repairs and maintenance is critical. This requires intelligently managing MRO parts inventory to ensure:

• Parts are available when needed without having overstocked items that add to costs.

• Effective inventory management for critical parts, which are those that can immediately impact the business if they’re not readily available.

*Source: Technavio
5
Manage Obsolescence to Reduce Costs
Sometimes equipment has been replaced or upgraded, yet the facility is still storing parts for it. Storing obsolete inventory is unnecessary—and expensive. Facilities can avoid this with:

• Visibility into upcoming equipment changes to identify materials or supplies that will no longer be needed.

• Understanding MRO usage to avoid items sitting in storage for extended periods of time.

*Source: Energy Central
6
Take Advantage of Purchased Services
Companies sometimes require specialized MRO services for complex jobs, such as plumbing or electrical work. Purchased Services helps by providing:

• Extensive expertise to fill specialized needs such as elevator maintenance.

• General and sporadic MRO needs such as office cleaning or preventive maintenance on office equipment.

*Source: Modern Materials Handling
7
Consider Outsourcing the Entire MRO Process
MRO procurement processes are constantly changing. Outsourcing the end-to-end MRO process to a supply chain partners allows:

• Organizations to no longer worry about MRO because the supply chain partner handles all aspects of it.

• Facilities to benefit from planned maintenance rather than reacting to breakdowns. 

*Source: Modern Materials Handling
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