Manufacturers today face growing pressure to boost efficiency and cut costs. One key area for savings is Maintenance, Repair and Operations (MRO), which involves sourcing spare parts, tools and services needed for smooth operations. Poorly managed MRO procurement leads to higher expenses, reduced productivity, lower product quality and excess inventory.
1. Enhance Spare Parts Procurement Planning
Accurate demand forecasting enables better purchasing decisions and inventory control. This reduces stockouts and excess inventory while ensuring essential parts are always available.
- • Use analytical models for high-predictability items
- • Automate restocking using ERP systems
- • Link low-predictability demand to planned maintenance schedules
2. Implement Spend Analytics
Analyzing MRO spend helps identify cost-saving opportunities and streamline procurement. Data-driven tools can optimize supplier selection and reduce manual processes.
- • Use ABC analysis to prioritize critical items
- • Identify inefficiencies and duplicate spending
- • Adopt analytics platforms for real-time insights
3. Increase Process Transparency
Clear processes and cross-functional collaboration reduce errors and ensure accountability in MRO procurement.
- • Document procurement protocols and workflows
- • Facilitate collaboration between operations, maintenance and procurement teams
- • Ensure visibility of MRO processes across departments
4. Consolidate Purchasing via Aggregators
Working with aggregators helps reduce costs and streamline long-tail purchases. Aggregators offer scale, expertise and supplier diversity.
- • Partner with multiple qualified aggregators
- • Negotiate contracts with KPIs (e.g., on-time delivery)
- • Ensure just-in-time delivery and better pricing
5. Source from Low-Cost Countries (LCCs)
Sourcing MRO materials from LCCs can lead to significant cost savings without sacrificing quality, if done with care.
- • Assess part quality, cost advantages and supplier reliability
- • Pre-qualify LCC vendors through audits and evaluations
- • Enforce strict QA/QC protocols for each MRO category
Conclusion
Efficient MRO procurement goes beyond cost reduction, it strengthens the supply chain. With better planning, data use, transparency and smart sourcing, manufacturers can cut downtime, boost productivity and gain a competitive edge.