Managing the MRO Monster

Implementing a strategic approach to sourcing non-strategic categories


With roughly 20 sub-categories combining to make up the overall category, it's difficult to have an in-house expert in MRO. A company dedicated to spend management can help you overcome this challenge through their specialization and economies of scale. Because the performance of spend management companies is typically measured on overall category savings, they are incented to improve process performance and reduce inventory levels while maintaining appropriate service levels. When evaluating a spend management company that performs outsourcing services, you should examine the tools and systems they'll use to drive improvements in your process and inventory these results.

Implementation Barriers to Overcome

No matter which MRO strategy you choose, you'll undoubtedly face challenges and resistance during implementation. Among the most common barriers are:

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