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Why Outsource MRO?

MRO Outsourcing | SDI
Information is critical to managing your MRO supply chain. Yet most companies struggle with data and lack the staff, time and money to acquire and manage it.

Data Management
Strategic Sourcing
Transactional Processing
Storeroom Management
Continuous Improvement
Inventory Management
Metrics and Reporting

Supply chain inefficiencies like inventory surplus, excess paperwork, decentralized procurement and poorly managed stockrooms cost your company untold amounts of money. This is where SDI can be the catalyst for streamlining your MRO supply chain and helping you realize the following benefits:

Reduce costs: Eliminates excess and obsolete inventory, reduces overall MRO supply costs, and more
Improve productivity: Your staff gets stock items as needed. Most SDI clients see a 99%+ fill rate on critical spare parts
Better decision making: We give you the “big picture” with MRO-specific data, detailed reports, and a customized electronic catalog
Reduce technology investment: Take advantage of our innovative e-commerce solution, inventory forecasting technology, and hand-held devices for mobile work forces – without heavy investment on your part
Enjoy expert support: SDI experts are trained in integrated supply, program implementation, and change management. Whether you want on-site staff or just need technical support, we’ll be there
A wide range of outsourcing solutions for every size company.
Most companies do a poor job of accurately recording what MRO products they use. Transactions are often quick without consideration of how the resulting data can be leveraged. Dealing with hundreds of suppliers doesn’t help and only adds to the confusion, waste and inefficiencies. But when you outsource to SDI, you whole organization benefits from consistent, standardized data for every item and transaction – data that can be leveraged to make better buying decisions and cut costs.
Strategic sourcing departments of most companies focus on direct materials or high-cost items. Smaller volume MRO items typically get little attention. In addition, local suppliers may not always deliver the best price. The big benefit of outsourcing to SDI is that every dollar spent is leveraged across your whole enterprise and SDI’s entire client base, ensuring the lowest possible price and the best available services. With SDI, you get compliance on negotiated contracts and consistent supplier performance across your whole company.
Transactional Processing
MRO purchases make up only 8%-12% of a typical company’s expenditures, but account for 60% - 80% of the transactions. In fact, the true cost of MRO material is estimated to be 60% price and 40% process. It takes a lot of time and manpower (purchasing, accounting, finance, maintenance, engineering) to make and process MRO purchases, not to mention the headaches and inefficiency of managing hundreds – sometimes thousands – of suppliers. But when you outsource all these functions to SDI, you gain a huge savings in cost reductions and efficiencies, because every single transaction is accounted for and standardized.
For most companies, storeroom operation is not a core competency. Storeroom personnel are often employees transitioned into the role from other departments. Poor record keeping, lack of inventory control and staff errors all contribute to make most storeroom operations grossly inefficient. SDI can help. SDI’s MRO Inventory Management System (InSite Online®) helps reduce inventory and free up cash better spent on other parts of your business. Our web-based electronic catalog and requisition system provide additional controls and value, further reducing the total cost of ownership for MRO. In fact, you’d have to invest hundreds of thousands of dollars to duplicate the technology SDI brings to your storeroom.
SDI provides a dedicated resource devoted entirely to finding cost savings for MRO materials and processes. Most clients do not have the resources to identify these critical opportunities that deliver sustained value, year after year, to the MRO supply chain. Once again, with SDI you get productivity and savings you wouldn’t see otherwise.
Effective MRO inventory management is rare in most companies. Many businesses have no record keeping or transaction history for the millions of dollars they spend on inventory. SDI can help, dramatically. Our cutting edge inventory management system is a strategic advantage that cuts inventory waste, while providing critical transaction history that can be leveraged again and again. Utilizing usage data, lead time variability, transportation costs and more, SDI’s replenishment process automatically determines the correct pattern by SKU for future forecasting of demand.  The result: better use of your inventory investment in materials and lower cost of ownership.
It’s difficult to make smart decisions with little or no data about  parts consumption and usage for machine maintenance. Many companies have very poor inventory and transaction records, which adversely affects the MRO process. That’s why SDI offers a sophisticated reporting package that arms you with key information to make better decisions and improve performance. With SDI, you have access to every single transaction and historical data built into our system, so you get meaningful reporting that helps you run a more profitable business.