Subject: The True Cost of Managing Indirect Procurement

The True Cost of Managing Indirect Procurement.
Hi Friend,

October is procurement month at SparePartsKnowHow.

The influence of procurement in spare parts management is, in my opinion, poorly understood.

The procurement role is often seen to be purely transactional. There is a perspective that they don't make decisions, they just buy stuff!

But procurement decisions do matter and can have a major influence on results. This is why the procurement team should be included in the planning process.

This month I will present articles and videos to help explain the role of procurement in the spare parts management process.

Video 1: The True Cost of Managing Indirect Procurement
Do you know the true cost of managing indirect procurement vs. the cost of managing direct materials procurement? In this short video from the Something to Think About series, explain the true cost of managing indirect procurement.


Article 1: Why Isn’t Procurement Treated as a Partner in Spare Parts Management?
When it comes to the management of spare parts used for maintenance and operations support, the procurement team is often treated as an outsider, a service provider, rather than a partner in ensuring that the objective of maintaining operational capacity is achieved. This article explains why this should change.


There is also a link to the white paper: Procurement Outsourcing for MRO and Indirect Materials
This is, of course, just a fraction of the procurement-related content available in our resource library.

Scroll down for the links.

Stay safe.
Keep on improving!

Phillip Slater
Spare Parts Management Specialist
Founder, SparePartsKnowHow

Spare Parts Inventory Management Training
The Spare Parts Alliance
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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
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
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
Provides comprehensive education programs in reliability and maintenance practice.
Based at the University of Tennessee, Knoxville.
http://bit.ly/RMICUT
Spare Parts Management Specialist and Consultant.
Author of Spare Parts Inventory Management and Founder of SparePartsKnowHow
http://bit.ly/phillipslater
Spare Parts Inventory Management Training, Resources, and Coaching for Individuals and Teams. Improve your spare parts management know-how.
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Feature Content
Feature Video: The True Cost of Managing Indirect Procurement

Do you know the true cost of managing indirect procurement vs. the cost of managing direct materials procurement? In this short video from the Something to Think About series, explain the true cost of managing indirect procurement.

Watch here: https://bit.ly/3jWzplq
Feature Article: Why Isn’t Procurement Treated as a Partner in Spare Parts Management?

This article explains why the view of procurement as an outsider, rather than a partner, should change.

Read the article here: https://bit.ly/33PvalZ
Feature Training: Pro Level Spare Parts Management Training

The Pro level membership at SparePartsKnowHow gives you access to all of our content and equips you with the know-how and skills to effectively manage all aspects of spare parts inventory.

Learn more here: https://bit.ly/3gGrRkg
Feature White Paper: Procurement Outsourcing of Indirect Materials

MRO and indirect items have specific characteristics that impact the management of their procurement. This means that significant parts costs savings can be achieved through outsourcing.  This white paper explains. 

Read here: https://bit.ly/3jcMu9a
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