Utilize the Right Sourcing Lever to Manage Your MRO
Avoid the pitfalls of improper maintenance, repair and operations (MRO) management and use the right sourcing levers for maximum profit and reduced spend
Continuous improvement
One key to success for strategic sourcing activities in any organization is its effectiveness in addressing continuous improvement activities. Any of the levers mentioned earlier cannot be considered to be one time (final) activity. The organization must decide the KPIs for each stage of its supply management process and everyone involved in it should be encouraged to get involved in bringing excellence in those KPIs. Organizations should facilitate in training its employees in Six Sigma tools so that they can take up continuous improvement projects. Given a particular problem, the tools and techniques the Six Sigma problem-solving process provides are obviously effective given the success attributed to it by its proponents. Starting with roots in statistical process control and with tools that come out of its precursor, Six Sigma adds a focus on bottom line impact that makes it worth the attention of top management—a necessary condition for effective improvement efforts.
Strategic sourcing should have a holistic approach into the entire value chain of supply management of MRO items, and then only actual benefits can be reaped.
Kunal Kant, Sourcing & Procurement, Infosys Ltd., Bangalore, India
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