"One of the biggest issues in MRO spend management is that organizations don't even know what their real issues are."
Michael Croasdale opens this week's episode of the Source One Podcast by reminding listeners that a lack of awareness if often Procurement's biggest stumbling block.
Many organizations, he suggests, operate in the dark. They are completely unaware of their opportunities for MRO cost reduction and vendor consolidation "because they haven't touch the category in years." Lacking these insights, they often make dangerous assumptions that only compound their spend management woes. The popular idea that MRO is completely unmanageable doesn't help matters either. Oftentimes, fear of attempting to manage the unmanageable leads to years of inefficiency and inaction.
Breaking an organization's bad habits isn't easy. Crosdale remarks that long-standing, inefficient practices make for a time-consuming data collection process.
Throughout engagements, however, Croasdale takes pains to ensure his clients internalize MRO best practices. "I take care to communicate with every stakeholder," he says, "and educate them on how and why I made the decisions I did." These conversations are at the heart of his approach to spend management. "You can't drive Procurement solutions in a bubble," he says.
He identifies two key factors that set effective spend managers and effective Procurement consultants apart. "Making a positive change," he remarks, "depends on an effort to build a relationship and come to a genuine understanding of what the other party needs." He credits this hands-on approach to his success and the spend optimization results he has produced for clients.
To learn more about developing an effective approach to MRO spend, listen to the full conversation and download Source One's new whitepaper - MRO: Demystified.