What is Enterprise Maintenance, Repair and Operations (MRO)?
Integrated Supply Chain Solutions: How Big Picture MRO can impact your productivity
In Maintenance Repair and Operations, parts are only one small part.
Maintenance, Repair and Operations has historically been considered non-core – a way to control piece-price costs in the realm of high-volume, low-value purchases. This is important but increasingly short-sighted. There’s a much bigger picture at stake here. Broadening your perspective opens a world of opportunity for your entire organization.
Understanding how each piece of the picture impacts the enterprise-wide picture is key – it can lead to astounding savings, end-to-end efficiencies and unheard-of control. It enables your manufacturing process by increasing visibility, reducing plant downtime, boosting operational productivity and ensuring overall equipment effectiveness.
With a supplier-agnostic approach, SDI’s core focus is to deliver the best program for your individual needs – to allow certainty to ripple through your enterprise instead of uncertainty. Remember, we’re not in the business of selling parts – our business is managing the MRO supply chain. For enterprise MRO to work, it takes more than parts. We find ways to optimize your Maintenance Repair and Operations process – your entire process.
Why care about Maintenance Repair and Operations?
With thousands of transactions, tens of thousands of SKUs, a decentralized and under-resourced spend category, sub-processes that have sub-processes, plus a highly fragmented vendor base, you’re exposed to significant enterprise risk in your MRO supply chain. One misstep can have expensive consequences – inherent risks include:
- Inflated finished goods inventory
- Uncontrolled growth of spend and supply base
- Maverick spend and non-compliance
- Unplanned equipment downtime
- Working capital tied up in obsolete or unnecessary inventory
- Stock-out of mission-critical parts
- Lack of actionable data and spend visibility
- High freight costs
- Loss of maintenance labor productivity
- Frustrated stakeholders
Moving beyond the silo mentality.
By definition, supply chains feature various functions working on various components in their own autonomous silos. This narrowed perspective blinds you to potential effects down the chain – our job is to prevent that chain reaction. We bridge your functional silos to have Maintenance Repair and Operations work in tandem with every part of your organization, unifying efforts and improving outcomes at every level. Instead of viewing MRO as a non-core, indirect spend item, it’s critical to recognize its importance as a supply chain that enables your core operations.
Maintenance Repair and Operations should coordinate, align, sync – and profit.
SDI’s connected approach can transform your production line and facilities into something predictable and reliable, supporting ultra-efficient manufacturing practices, ensuring a competitive edge, all while helping you control costs (including piece-price) in the process.
Unlike the typical model, we don’t come in and quote every two years, we become an extension of your business, coordinating actions and aligning metrics with a common data set. We become your partner, turning a seemingly non-core task into a core competency. After all…
The supply chain works best, when it all works together.
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It takes a progressive manager to push the organization to look at indirect spend and managing it in a different way - but once you see it, then you realize the opportunity.
In the third post in this series on MRO As-a-Service by Spend Matters, Pierre Mitchell and Michael Lamoureux talk about how managing MRO as a process delivers benefits from efficiency to effectiveness and beyond to an evolutionary phase. The next generation of value, MRO-as-a-Service, helps organizations build intelligent, agile, scalable and integrated supply chains (direct and indirect).
The project team has worked its way through Define, Measure, Analyze, and Improve. It’s time to begin the Control phase. The key stakeholders gather to evaluate the solution as implemented and create a plan to sustain the improvements. The goal is to standardize the improved processes, establish an audit schedule and schedule periodic follow-up to identify additional opportunities for improvement.