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MRO. Spare-parts supply. Supply-chain optimization. Whatever you call it, keeping your site properly stocked is a core business concern for any industrial facility. Striking the right balance between oversupply (wasteful spending) and undersupply (risk of production stoppage) is a crucial concern, especially at sites where there are often multiple teams doing MRO on their own as “small fish” with little purchasing power or coordination.
Now, with global economic disruption underway, every company’s costs are coming under the microscope; every company’s cash flow is now the center of attention.
It is now clear that 2020 is the year that unified, strategic MRO - and the value it generates – will move from “nice to have” to an absolute must-have.
So what is this value generated? Here are a few of the wins to expect when you switch to a strategic MRO partner.
1. Cost control
Optimizing MRO procurement has a measurable impact on your bottom line. Too many businesses underestimate the total amount they’re spending on MRO due to hidden costs within the procurement process. While individual products are typically inexpensive, research suggests that the average organization spends twice as much on procurement as on the product itself. With the right strategy, you can find and eliminate those inefficiencies and maximize your purchasing power.
Strategic partnership keeps your costs down in several ways:
• Supply chain consolidation
• Price deflation – volume leverage, global supplier network
• Inventory optimization - inventory reduction, buy back, etc.
• Reduced downtime
• Advanced solutions – AI and IoT-based predictive maintenance, digital reporting & KPIs
2. Easy plug in, easy scale up
When you shift from decentralized to unified MRO, getting all teams on board can take time. The fact is, different teams may have different levels of readiness for change, and some may hesitate to disrupt familiar purchasing networks.
The good news is that nothing speaks like results. One of MRO partnership’s greatest advantages is how easy it is to run a pilot that plugs just one team into the global MRO network and then scale up after value has been proven and wider acceptance begins building up.
Aden’s MRO team has done just this hundreds of MRO customers in Asia. But, by linking one team into our wider MRO services by being on-site for collaboration every week, and delivering concrete value in a short time, we were able to produce an immediate gain that opened the door to further gains on other teams.
3. More time for core business
MRO is a high mix, low-volume business. If you do it on your own, that means continually making small orders, with plenty of time drain on various teams. Remember, switching to a strategic MRO partner isn’t just about what we’ll do for you. It’s about what we free your people up to do after we come in.
The fact is, many companies only realize how much of a time and energy burden doing their own MRO is after they have outsourced to a strategic partner. The numbers can be staggering – hundreds of suppliers and thousands of purchases at a time.
With a strategic partner, that’s all shifted away from your employees, with your teams seeing a marked freeing of resources and attention to detail in work.
4. Sustainability & waste reduction
Good MRO is about pinpoint accuracy: forecasting maintenance needs and parts replacement, then buying just the right amount – no more, no less.
This leanness isn’t just a financial win, it’s an environmental win. With every surplus purchase comes extra packaging, energy consumption and carbon burning through the shipping and transport process.
With a strategic MRO partner you can commit to clean industry by:
• Streamlining your supplier network – ship more parts in fewer C02-burning trips.
• Cutting out redundant purchases.
• Specifying what kind of suppliers you want to buy from and making sure all purchases meet your in-house sustainability commitments.
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