The 2020 pandemic showed how vulnerable supply chains can be to external disruptions. Organizations that were prepared and able to adapt quickly saw the best outcomes. Still, for those without robust processes in place, costly gaps in their operations revealed themselves just as pressing customer demands increased.
MRO procurement is an essential part of business operations, but it can often be set aside during digital transformation efforts in favor of procurement functions deemed more critical. According to an article by engineering.com, 53% of manufacturers surveyed in a recent Gartner study haven't even been tested by a digital challenge yet, undermining their readiness for transformation.
In an inflationary market, maintenance, repair, and operations (MRO) procurement has an opportunity to save businesses money while still maintaining a reliable supply of needed materials and services. But as the cost of operating in today’s inflationary economy continues to rise, companies everywhere are looking for ways to remain competitive and optimize performance without sacrificing quality or reliability. Procurement leaders looking for solutions must turn to effective MRO strategies that leverage resources more efficiently while improving cash flow management. With intelligent planning and well-informed decisions, businesses can maximize savings on their bottom line while retaining continuity across their organization's operations.
In the current era of disruption and accelerated innovation, MRO procurement leaders must make sure that their organization has an agile, streamlined way to optimize its suppliers. The highly competitive global economy means that organizations must effectively manage supplier relationships to maximize efficiency and access cost savings while also staying compliant with business regulations. Supplier optimization through collaboration is increasingly becoming a key factor in how companies gain a competitive edge — making it perpetually critical for successful operational continuity.
In manufacturing, sensors and smart equipment are revolutionizing maintenance processes by allowing for more proactive and efficient planning. MRO procurement leaders can use automation and Internet-of-Things (IoT) technology to monitor assets in real-time, identify maintenance trends, and automate the order of parts and services based on analytics. According to a Deloitte study cited by Forbes, more than 86% of manufacturers in the study "believe smart factory initiatives will be the main driver of manufacturing competitiveness in the next five years." However, only 51% were making or had made investments in IoT at the time of the study.
MRO procurement has been a manual process for years. But thanks to smart technologies like AI and machine learning, companies are realizing new levels of efficiency.
Check out our latest article to learn how you can use smart technologies to predict maintenance requirements and reduce manual processes.
The pandemic revealed significant issues in the MRO supply chain. Companies can no longer afford to stretch the lives of their machines while relying on lean maintenance teams.
Here’s why MRO procurement leaders must serve as a steward of the supply chain moving forward.
Data analytics is now a standard tool for companies that want to better manage their procurement functions. Here’s why capturing and analyzing the right data is now key to reducing maverick and tail spend in MRO procurement.
MRO procurement professionals need to draw more value from their most critical suppliers. This can be challenging if you don’t have the tools, processes, and resources in place to collaborate and make better deals with your supply partners. This article explores how procurement leaders can get the most out of their MRO supplier relationships through visibility, technology, and old-fashioned deal-making.
Accurate and usable master data is key to improving your MRO performance. Here’s how optimizing your master data can improve the MRO function with context-based insights, better efficiency, and more.
Organizations are implementing new technologies to accelerate their digital transformation. Over the past few years, we’ve witnessed profound changes to how companies sell, market, and deliver goods and services. While these changes impact other areas of the business, MRO procurement shouldn’t be an exception. Here’s how new technologies can accelerate MRO digital transformation.
Most organizations view maintenance, repair, and operations (MRO) procurement as a cost center and difficult to manage. But new technologies are offering solutions. Procurement leaders have spent significant time and money pursuing the digital transformation of the direct procurement function. When applied to MRO procurement, digital technology has the potential to cut costs, improve contract compliance, and free up business capital. Here are just a few of the technologies procurement leaders are eyeballing in 2021.