MRO Strategic Sourcing and Category Management
The MRO spend category encompasses a multitude of products, services and suppliers that are crucial to your day-to-day operations. With a large decentralized user base and millions of items and transactions, the MRO spend category has a high opportunity for cost savings – through Source One’s MRO strategic sourcing expertise and process.
Maintenance, Repair and Operations (MRO) is often a loosely defined indirect spend category – containing everything from off the shelf nuts and bolts to specialized engineering services. Organizations tend to use the MRO category as a dumping ground for numerous subcategories, often categorized by a fragmented supply base and high amount of tail spend. Buyers argue that they are forced to make “spot buys” on a daily basis, and that a lot of MRO-type purchases are necessarily done on an “as needed” basis. The result? MRO is treated as a tactical spend category despite its critical importance. This problem is compounded by the sheer number of MRO buyers, the lack of communication between MRO buyers and facilities, and poor MRO spend data management due to the utilization of different systems across facilities.
Source One’s MRO Category Management experts can help your Procurement and Sourcing teams overcome these factors. Where Procurement teams responsible for MRO struggle to gain control over fluctuating costs, product non-standardization, and site-level compliance, Source One can help. Our MRO category management services provides your organization with the strategic sourcing resources and expertise needed to help reduce costs through increased spend visibility, market intelligence, compliance tracking, and supplier optimization.
Besides driving competitive MRO pricing, Source One’s category managers work with you to:
- Provide expert MRO spend data cleansing and normalization to help you easily manage millions of SKUs and itemize current price points across all facilities
- Gain control over your demand planning and inventory management through industry best practices like vendor managed inventory (VMI), inventory consignment, industrial vending, and order point optimization
- Take advantage of economies of scale through MRO supplier consolidation and the establishment of a preferred MRO supplier base
- Set up national account managers and local facility representation with MRO suppliers in order to obtain increased service levels and support
- Streamline centralized billing processes to cut down on administrative costs
- Drive compliance through proper end user education within your organization
- Ensure compliance and pricing through continuous monthly auditing services, post-implementation
Through a comprehensive data collection and normalization process, Source One’s strategic sourcing team helps you gain a thorough understanding of your current MRO requirements from both a qualitative and quantitative standpoint. Not only does this provide more visibility into your MRO spend, but it provides a cleansed, line item-level detail data set for you to quickly understand and evaluate savings opportunities present within the spend. By leveraging our extensive internal database, MRO category expertise, and knowledge of the MRO market, Source One’s strategic sourcing resources can quickly benchmark your current costs and help develop move-forward plans to optimize your MRO supply chain.
Source One’s MRO strategic sourcing team works with you to evaluate and optimize your current MRO supply chain, providing clear strategies that will efficiently drive cost reductions, increase service levels, and drive compliance. Contact our MRO Category Experts today.
MRO Category Expertise
For most companies, the MRO category encompasses a wide variety of subcategories including:
- General Industrial
- Power Transmission & Bearings
- Pipes, Valves, and Fittings
- Safety Supplies
- Cylinders and Gas
- Tools and Hardware
- Material Handling
- Fleet and Vehicle Maintenance
- Lab Supplies
- Paint, Equipment, and Supplies
- Office Supplies
- Paper Products
Source One’s MRO cost reduction team understands how the MRO spend category reaches across your entire business – procurement, operations, distribution, maintenance and finance. The stakeholders interacting with the MRO category on a daily basis primarily include Maintenance, Plant and Warehousing Management – but since the MRO category impacts so many facets of the organization, secondary stakeholders may include groups such as Engineering and Research and Development. Source One’s MRO strategic sourcing team speaks the language of these stakeholder groups, understanding their needs and turning them into strong strategic sourcing requirements.
Source One has the strategic sourcing resources and partners to help you select and negotiate the right providers to manage your inventory and processes. We can even help you when you have unclean or uncategorized data and systems. Our MRO sourcing team can help you cross-reference items and build out a database that is easy to order from, while maintaining contract compliance.
MRO Case Study
Contracting for MRO Services
Our strategic sourcing team can help you negotiate the most favorable terms, prices and conditions for your contracted professional MRO services and MRO management services. Our MRO benchmark data will ensure that you are getting the right MRO contractors at the right price.Contracting for Services
MRO Spend Analysis and Data Scrubbing
Our spend analysis services will help you better understand your MRO spend and will determine which areas you need to target first.MRO Spend Analysis