Staying a Step Ahead by Comprehensive Industrial MRO Outsourcing

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By: Anup Varghese --

31 March, 2014

Staying a Step Ahead by Comprehensive Industrial MRO Outsourcing
WHITEPAPER

Sourcing Maintenance, Repair and Operation (MRO) industrial spares has never been easier in select regions and is extremely difficult in other regions. Large buyers with MRO spends above USD 20 Million for a particular geography are able to partially outsource procurement and inventory management to integrators or aggregators. These integrators help consolidate spend across various MRO categories such as electrical, mechanical, PVF, power transmission, fluid power and much more. But are integrators present in all geographies? The answer is no. The United States, Canada and parts of Western Europe have a number of integrators that buyers can choose from. But what about regions such as Africa, Australia, the Nordic regions or the Middle East? Here, few or no integrators offer such services that buyers can avail. So the ease of outsourcing MRO functions depends on the availability of third part providers or integrators who are willing to take up the function. This whitepaper will address the various sourcing opportunities that buyers can avail in regions that are considered mature and emerging in terms of industrial MRO market supply. Most of the top MRO distributors such as W.W Grainger are present in regions such as Asia, Eastern Europe, Australia and Latin America (the emerging regions). As discussed, very few integrators are present in parts of Asia and the Nordic regions; however, Australia and Latin America rely heavily on distributors for large scale supply. Here we will discuss how a buyer can effectively engage with a well-established distributor for their MRO supply. However there are few questions to consider before we are able to negotiate or leverage the presence of a top distributor in your region.




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