Improving MRO savings through data management

Abstract:

MRO, a key spend area in any organization, may incur high costs if not managed properly. Although MRO accounts for 5 to 20 percent of the indirect procurement spend, organizations fail to recognize its strategic importance. MRO can deliver up to 40 percent in savings; however, there are impediments in the process. The prime challenge of achieving savings from MRO spend is by turning data into useful and meaningful business intelligence. The lack of availability of MRO data across an organization results in inefficient operations, ineffective sourcing, and higher carrying costs. Data across diverse platforms, such as enterprise resource planning (ERP), procurement data management applications and asset management portals, need to be converted into useful information which is easily accessible to the decision makers. Hence, adopting a strategic MRO master data management service helps to streamline the entire material management cycle of an organization.