MRO procurement process gets clumsy when business underestimate the amount they spend on MRO products over a span of time and misunderstand the serious hidden costs associated with MRO procurement.

Having an effective master plan always improve the bottom line of an organisation. Here are the proven strategies for controlling MRO procurement cost.

Effective segmenting of MRO parts and Supplier Consolidation both factors should not be overlooked. Amount of margin pressures among the MRO Suppliers is a big factor to recognize. Allowing suppliers to suggest alternative brands or cross items can turn down costs and help in maintaining a balanced status or increase durability for maintaining operations and sourcing MRO.

Refurbishment of components in MRO category is important. In some cases, using refurbished parts can bring a savings of 30-60% as compare to new spare parts.

Agreement Negotiation. With the changes in the pricing and contracting models, a procurement organization should redefine its sourcing strategy to upgrade negotiations and should find a deal to leverage its MRO spend better.

Order Optimisation is another part to strategize for better Transaction management. Managing MRO orders using proper analysis, the demand analysis, minimum order quota and volume aggregation bring goodness. Emerging practices indicate data integrity and transparency of order information and supports negotiation.

Participating with strong MRO manufacturers to leverage scale. Though it would be hard to arrive at a right cost structure for company spares, it is prudent to understand the cost element of various MRO categories at a higher level.

Strategic team at IndustryKart is a best option for making the Industrial procurement a hassle free experience. Being a premium Leader of Industrial Goods and Supplies, we follow one Mantra of focus and Simplicity to let an organization run as fast, secure, and reliable as possible. Supporting daily routine business and administrative functions, supporting complex decision-making processes to thrive business like an Ace in Industry.