Is your MRO program managed by procurement?

Every year, US businesses spend over $100 billion on MRO purchases.  Everything from cleaning products to light bulbs falls under the heading of Maintenance, Repairs, and Operations.

But every year, inventory languishes on the shelf in supply rooms across the nation.  Why? Simply, about half of US businesses aren’t effectively managing MRO. Grainger’s Consulting Services arrived at this shocking evaluation, revealing that these companies are basically paying to store inventory which becomes obsolete before so much as seeing the light of day.

And that’s not a great use of resources.

Is your MRO program managed by procurement?  Or is it in the hands of other stakeholders, all with individual agendas?  Empire building, over-estimating need, and budget-padding are just some of the results of taking a haphazard, de-centralized approach to MRO.  Let’s look at some of the reasons that managing MRO more attentively and professionally is in your best interests.

The managed approach

When MRO is done on the ground (especially if you have operations in multiple locations), there is no overarching control mechanism to ensure that only those items needed are purchased.

Using data from inventory and process allows you to manage MRO based on historical information.  This methodology frames MRO as an operational necessity, opening the door to a more hands-on, analytical approach that avoids over-stocking.

The foundation of the managed approach to MRO is data.  This is crucial information which provides a window into past stocking practices and how they stack up against need.  In the data, you’ll discover patterns which can inform purchasing habits.

From there, asking the right questions is the way forward.  Knowing what’s in stock, what it’s there to do and how often it needs to be replaced translates into data that allows you to more efficiently manage MRO, controlling the costs involved.

Getting leveraged

When your MRO program is leveraged, it becomes a value center and a crucial part of your business strategy.  Centering MRO in procurement creates a framework which has its eye on all links in the supply chain and a clear idea of what’s in stock, what it’s there to do and how often it needs to be replaced – because you’ve set up the data foundation for procurement to leverage MRO.

Discipline is key to this approach, as keeping a handle on MRO needs means there’s no more ad hoc transfer of items.  Someone’s minding the store and someone is accountable – a keyword.

That means less languishing inventory and that’s a good thing because languishing inventory is like money gathering dust on the supply room shelf.

There are better uses for money, we’re sure you’ll agree.  And when procurement manages your MRO, that money will be soon be doing other things because leveraged MRO reframes the program as a key engine of your business.  

At CenterPoint Group, we bring you the power of numbers and data analytics that help you make the most of your MRO program.  If you’re ready to revolutionize your MRO, contact us.  We’ll give you the tools you need.

The post Is your MRO program managed by procurement? appeared first on Centerpoint.

source https://centerpointgroup.com/is-your-mro-program-managed-by-procurement/

Are You Confident About Your MRO Program?

Confidence is the backbone of any successful enterprise.  When you know what you’re doing, you have a handle on all the moving parts.  You’re confident because you’re getting the job done and well.

But are you confident about your MRO program?  Maintenance Repairs and Operations programs can get away from you in a hurry.  That’s especially true if your operation has multiple physical plants and multiple people ordering from multiple suppliers.

That’s not making the most of your MRO program.  In fact, all those variables are what undermine its effectiveness, costing you unnecessary time and money.

But what if I told you that having confidence in your MRO program was as simple as placing it in the hands of a trusted procurement advisor like CenterPoint Group?

We mold your MRO program to the unique needs of your operation, creating a centralized MRO machine that works overtime to deliver cost savings and efficiencies that move your business forward.

And who are we?  We’re a procurement advisor driven by data and keen analytics that walks with you toward the confidence only a fully-streamlined, up-to-date MRO program can deliver.

Pulling it all together

Is there anything more confidence boosting than pulling it all together?  When all your ducks are neatly lined up, you know exactly where you are and that feels great.

At CenterPoint, we’re the muscle behind your operation, gleaning the wisdom of data via fine analysis that allows you to see exactly where you might be doing better.  We show you where your MRO program can be tightened and perfected by analyzing your spends and identifying vendors and carriers who are serving your organization in a way that moves your business forward.

Instinct is a beautiful thing, but when you’re talking MRO, data is what you need to ascend to the pantheon of the elite group of companies that boost their productivity by 5% and their profits by 6%, with data-driven procurement decision-making.

CenterPoint Group’s analytic, procurement-focused team pulls it all together, creating MRO that inspires confidence because it’s precise and predictive, pointing the way to a cohesive supply chain and right-on-time procurement.

MRO muscle

The complex matrix of suppliers and categories involved in an MRO program requires the support of a strong data platform and dedicated, continual management.  

Centralizing, streamlining, analyzing and implementing on your behalf, we’re procurement advisors who walk with you toward sophisticated MRO for a changing market.  The complex needs of this area of procurement are tailor made for friends like us – friends you need to succeed.

So, are you confident about your MRO program, or do you lie awake at night staring at the ceiling and wondering if that machine that “never breaks down” is going to surprise you in the morning?  Will the part you need be in stock?

With CenterPoint leveraging $850 million of collective, indirect spend to bring you the power of numbers, your MRO program becomes a thing of beauty.  Inspiring confidence, MRO doesn’t need to be a 7-headed hydra.

Tame it, with CenterPoint – MRO muscle for your future.

The post Are You Confident About Your MRO Program? appeared first on Centerpoint.

source https://centerpointgroup.com/are-you-confident-about-your-mro-program/

Do You Have a Firm Grasp of Your MRO Program?

Parts and supplies are coming and going.  So far, so good!

But do you have a firm grasp of your MRO program?  If not, you may find yourself waiting for an important piece of your manufacturing puzzle at an inopportune time.

And that’s not helpful.

Your MRO program is what keeps the wheels turning.  It addresses your operation’s daily needs, maintaining manufacturing and distribution apace.  That’s why it’s so crucial to procurement and to your business.

Imagine that a machine in your production facility goes down.  Wait! Where’s that part to get it back up and running? It’s not there!

That can mean a 10-day wait and that kind of delay costs you money.  Maybe you don’t want that delay, so you fork out an exorbitant chunk of change to get the part into the plant.

What a waste.

Having a firm grasp of your MRO program means understanding your supply chain and the operational needs it serves.  Knowing what you have, what you’re likely to need and when, are key components of having a firm grasp on MRO.

Centralized control

It’s undeniable that MRO has a lot of moving parts, but when you centralize the function, you create increased transparency and greater control.  Those add up to a firm grasp.

Especially when your operations are spread out across the country (or the globe) purchasing can be ad hoc and haphazard.  Contingency plans (like a sudden need for parts) are overlooked and suppliers are all over the place because no one’s communicating.

Without centralization, your supply chain is fractured.  Often, you’ll find that disparate operations use disparate suppliers, even for precisely the same goods or services.  Without category standardization, it’s a free-for-all.

That means you don’t get the best deal, because you’ve become small, fractured and siloed.  Centralization takes care of that, allowing you to create economies of scale that vendors reward.

Analyze and conquer

When your supply chain has become fractured, analysis is the remedy.  De-constructing your spend, categorizing it and working with your people to get a handle of who’s sourcing what from whom helps you put the chain back together as a better version of itself.

Once you know what you’re dealing with, you’re primed for consolidation, market evaluation and earmarking favored suppliers.  National contracts may now be established, paving the way to standardized pricing, due to your orders being consolidated into a much larger concern.

At this point, you’re already getting a firm grasp on your MRO program.  With vendors serving your entire operation, you have access to discounts which help you control costs and avoid the horror of the missing part that demands heroic feats of spending to avoid delays.

CenterPoint Group

CenterPoint Group’s mission as a trusted procurement advisor is to bring you keen data analytics to help you get a firm grasp on your MRO.  

We deliver cost savings by leveraging the power of numbers.  Our membership benefits from $850 million of collective, indirect spend.  That’s power that helps you get a grip. Contact us.

The post Do You Have a Firm Grasp of Your MRO Program? appeared first on Centerpoint.

source https://centerpointgroup.com/do-you-have-a-firm-grasp-of-your-mro-program/

Increasing Visibility into Your MRO can Help Save You Time and Money

Maintenance, Repair & Operation purchasing (MRO) is an often-overlooked facet of business which can create enhanced transparency in your supply chain.  This side of procurement addresses the everyday needs of businesses, for items as mundane as cleaning products.

But MRO is involving and these days, the model which is emerging is that of MRO-as-service.  MRO is a key facet of any supply chain, regardless of the business you’re in, but when managed efficiently, it can contribute to your operations as a value center.  Part of that is increasing visibility and that requires supply chain transparency to be actively pursued as part of reforming MRO to act as a service.

Beyond purchases

What makes the MRO go around is a complex network of suppliers at all links in the chain (large scale suppliers, local vendors, services suppliers, transportation).  With a multi-faceted set up like this, optimal MRO performance is rooted in management style.

MRO being approached as a critically important business function and integral to the supply chain moves beyond the purchases themselves, integrating how they’re delivered, how vendors are responding, product quality and sustainability.

These are all important factors in increasingly visibility into your MRO. It’s a critical facet of your business, so treating it that way (and not superficially) is an imperative.

Beyond controlling spending

Software created to provide technological support to MRO have given birth to ERP solutions, so it’s clear that deploying ERP is the right response.  But it’s also clear that bespoke solutions addressing specific enterprises and industries are how you can take your MRO to the next level.

MRO is moving beyond controlling spending.  The need to innovate, create new ways of doing things and find solutions is driving change in this area at a rapid pace.

Key improvements being offered by next generation MRO management include managing inventory more effectively and efficiently and avoiding obsolete, excess inventory while ensuring that day-to-day items are stocked.

Part of that is understanding the ebb and flow of demand by utilizing data provided by ERP.  This creates the ability to foresee and prepare, also stemming the unfortunate phenomenon of maverick spending.

The science of the everyday

Total visibility in your MRO is becoming a pressing priority.  While not a profit-centered function, what well-adjudicated MRO does offer is the means to reduce unnecessary cost and stagnant inventory, representing monetary assets tied up in limbo.

Your everyday purchasing needs have a powerful ally in MRO which reaches beyond controlling spending to give you a penetrating view into a complex supply chain.  That’s the science of the everyday, making MRO a strategic function which contributes to the bottom line and efficiency.

CenterPoint Group

At CenterPoint Group, we’re a trusted procurement advisor, applying the science of the everyday to your company’s daily purchasing needs.

By deploying data analytics and transaction analysis, we create exceptional opportunities for you to streamline your operations, making your procurement functions efficient and cost-effective.

Leveraging $850 million of collective, indirect spend is part of how we do it.  Contact us.

The post Increasing Visibility into Your MRO can Help Save You Time and Money appeared first on Centerpoint.

source https://centerpointgroup.com/increasing-visibility-into-your-mro-can-help-save-you-time-and-money/