Six Procurement Benchmarks to Effectively Manage MRO Spend

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By: Xavier Mascarenhas -- Senior Reasearch Analyst

27 March, 2015

Six Procurement Benchmarks to Effectively Manage MRO Spend
WHITEPAPER

Abstract : MRO spend is considered nuisance by procurement managers since MRO products or services are not needed directly in production. However, MRO is highly important for industries in order to keep the plants and equipment running smoothly and efficiently. As a procurement manager MRO brings different challenges to the table. Managing large number of suppliers due to high number of different products and services required, inventory planning challenges on account of sudden breakdowns, maverick spending due to special requirements for fabricated products are some of the major challenges faced in producing MRO products. Industrial MRO market is large and fragmented with very high number of suppliers in each category spread across the world. As a result it becomes difficult for organizations to set the right goals apart from acquisition costs in order to continuously improve their MRO supply chain. This paper suggests Six Benchmarks which can be used by MRO procurement managers to identify whether their MRO procurement is comparable to best in class large MRO buyers or not. These benchmarks will be useful in lowering the total cost of procurement of MRO




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