MRO (Maintenance, Repair, and Operations) is among the broadest and most complicated spend categories out there. A diverse range of products and services, broad supply bases, and a history of poor spend visibility all make MRO a high-stress category for Procurement.
Certain complications are inherent to MRO sourcing. Broken machinery, for example, will always force organizations to make sudden, one-off purchases. These unexpected hiccups might not be totally avoidable, but organizations can reduce their impact by taking a more proactive and strategic approach to managing MRO spend.
In their new whitepaper series, Source One's MRO Strategic Sourcing experts advocate for such an approach. Titled MRO Demystified, the series identifies the challenges of MRO sourcing, explores the shortcomings of typical approaches, and offers suggestions for optimizing each step of the MRO sourcing process.
"Everyone recognizes how important MRO spend is," says Associate Director and MRO Category Lead Michael Croasdale. "In my experience, however, too few organizations address the category as strategically as they ought to. Our hope is that reading MRO Demystified will help Procurement professionals recognize the shortcomings in their usual practices and feel empowered to make a change within their organizations."
The series' first installment provides an overview of MRO and its thousands of sub-categories before diving into Procurement's usual methods for tackling MRO spend. Where most organizations err, the whitepaper suggests, is in making the assumption that there's a one-size-fits-all strategy for managing the category. Throughout MRO Demystified, Source One's spend optimization team advocates for customized spend management strategies informed by Procurement's unique needs and objectives.
Every organization needs something different from their MRO suppliers. That means every organization has to devise their own policies and procedures for ensuring these needs are met. Download Part 1 of MRO Demystified today to start approaching the category more strategically and effectively.
Don't forget to stay tuned for more MRO Strategic Sourcing insights over the next several weeks. Future installments will discuss conducting spend analyses, managing vendor negotiations, and developing a framework for MRO category management.