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Never Overlook MRO & the Supply Chain

As much as organizations focus on direct procurement as a strategic business operations, it's critical not to overlook indirect spend as an equally strategic activity for the supply chain as a place to streamline the supply chain and save cost.

The purchase of the maintenance, repair, and operations (MRO)-related products and services keep the day-to-day business alive, of course, but can also add value in a variety of ways. Today, with the advent of cloud technologies, organizations have the option of MRO-as-a-service options to get things done faster and in a quicker fashion.  Michael Lamoureux, research analyst, and Pierre Mitchell, chief research officer, of SpendMatters list a number of benefits of the use of MRO-as-a-service:

  1. At least a 20% reduction in inventory in 18 months (or less)
  2. Increased ifill rate of up to 20% (or more) and fill-rates that quickly approaching 98%
  3. Drastic reduction of obsolete inventory and recall inventory
  4. Reduced returns
  5. Increased efficiency

The infographic below from Spend Matters illustrates the breadth of the direct and indirect supply chain. Take a look and let us know how you've optimized and leveraged MRO buys for the good of the organization.

— Hailey Lynne McKeefry, Editor in Chief, EBN Circle me on Google+ Follow me on Twitter Visit my LinkedIn page Friend me on Facebook

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