Why do so many companies fail to optimize their MRO spend profile, even after committing to making a change?
In many cases, it's because they neglect to conduct a thorough and effective spend analysis. The process of diving into historical spend provides the foundation for a more effective, strategic approach moving forward. Done correctly, spend analyses make it possible for Procurement to achieve an overview of their historical purchases within a category and identify opportunities for both short and long-term cost reduction. In a high-volume category like MRO, however, the process often looks too daunting for Procurement to even attempt.
In Part II of Source One's new whitepaper on MRO spend management, the Strategic Sourcing experts take a closer look at the value of a good spend analysis. They offer best practices backed up by their collective decades of supply chain experience and aim to alleviate any misgivings Procurement might have about this complicated category.
Check out MRO Demystified Part II: The Value of a Spend Analysis to learn more about:
- Rethinking historical approaches to analyzing and managing MRO spend.
- Developing the right goals for spend analyses and sourcing initiatives.
- Selecting the right taxonomy for an MRO spend analysis.
- Collecting and categorizing spend data in the most efficient way possible.
- Leveraging MRO spend data to identify opportunities for cost reduction.
- Encouraging suppliers and stakeholders to develop more effective data collection processes.
- And more . . .
Make no mistake, wading through years of MRO spend data is a time-consuming process. This is doubly true for organizations who've historically relied on their suppliers to collect and store data. That's no reason to abandon hope. With the insights offered by Source One, organizations should find that even the (admittedly) hard work of constructing an MRO market basket is simpler.
Download the whitepaper today to start refining your approach to MRO spend management and be on the lookout for Source One's team at ProcureCon MRO next month. The leaders in spend management aren't just attending, but serving as sponsors for this exciting event. Stay tuned for more updates in the coming weeks.