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The MRO Procurement Complexity Trap
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| Hi Friend,
Do you know the characteristics that differentiate direct and indirect procurement?
Direct procurement is characterized by high volumes, regular purchases, and a small number of suppliers.
Indirect procurement, and MRO in particular, is characterized by low volumes, irregular purchases, a large number of different items, and a large number of suppliers.
These key differences mean that the cost of managing indirect procurement can be 4X the cost of direct procurement. As a result many companies fall into what I call the MRO complexity trap.
To avoid this trap companies need to consider a different model for managing their MRO procurement.
This is the basis of our most recent webinar. |
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The key take-aways from this webinar are: - The key differences between indirect and direct procurement
- The unique management cost profile of each type
- The MRO procurement complexity trap
- The pros and cons of procurement outsourcing
- The results of a success story
The full recording is now available at SparePartsKnowHow.
There is also an accompanying white paper to download. That link is on the page. |
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Stay safe. Wash your hands.
Keep on improving!
Phillip Slater Founder, SparePartsKnowHow
Demystifying Spare Parts Inventory Management |
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The Spare Parts Alliance
Connecting you to suppliers that you can trust. |
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A leader in the provision of procurement services. Helping companies manage the complex activities of MRO procurement and logistics. http://bit.ly/v-linegroup |
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| Right Sized Inventory uses patented inventory-optimization predictive analytics technology to analyze your supply chain and establish best target inventory levels. http://bit.ly/RSI_SPKH
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NRI Industrial specializes in the management and sales of surplus spare parts. They provide solutions to recover value from overstock, surplus and obsolete inventory. https://bit.ly/NRISolutions |
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Provides comprehensive education programs in reliability and maintenance practice. Based at the University of Tennessee, Knoxville. http://bit.ly/RMICUT |
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| Spare Parts Management Specialist and Consultant. Author of Spare Parts Inventory Management and Founder of SparePartsKnowHow http://bit.ly/phillipslater |
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Spare Parts Inventory Management Training, Resources, and Coaching for Individuals and Teams. Improve your spare parts management know-how. |
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