Taking Advantage of New Technologies to Accelerate MRO Digital Transformation


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Companies have embraced digital transformation to stay competitive. This almost always requires them to adopt new technologies that can help improve efficiency and productivity. While transformation is prevalent in sections of the business such as operations, sales, and marketing, it's also pertinent to the procurement department.

One area where this is especially important is maintenance, repair, and operations (MRO) procurement.

In this article, we will discuss three of the most important technologies for accelerating MRO digital transformation: analytics, artificial intelligence, and collaborative software.

Analytics and MRO Procurement

Analytics has become one of the most important tools in business, and it affects multiple functions. A strong analytics capability helps companies draw insights from data so they can be used to power workflows and improve decision-making.

In the MRO procurement function, analytics can help procurement professionals generate insights about suppliers and the supply chain. This helps them reduce costs and improve efficiency.

The main benefits of analytics in MRO procurement are:

  • Increased visibility into supplier performance: Analytics can help MRO buyers identify and benchmark the best suppliers. This allows buyers to get the most value for their MRO spend.
  • Optimized MRO inventory levels: Analytics can help MRO buyers forecast demand and manage inventory levels more effectively. This can lead to significant cost savings, but it can also help the organization avoid shortages during disruptions.
  • Effective MRO contract management: Analytics can help MRO buyers generate better contracts with suppliers by providing them with actionable data and insights during negotiations.

Artificial Intelligence and MRO Procurement

Artificial intelligence (AI) is another important technology for MRO procurement. AI can help MRO buyers automate repetitive tasks, such as collecting data from suppliers or analyzing supplier performance.

The scope of AI's capabilities is only expected to broaden as the years go on. Likely, AI will be used in the procurement department to automate lower-level decisions and power digital workflows.

Here are a few of the benefits of using for MRO procurement:

  • Reduced operational costs: AI can help MRO buyers automate repetitive tasks, such as data collection and analysis. This can lead to significant cost savings.
  • Improved MRO supplier performance: AI can analyze data points from across the supply chain to generate insights about suppliers. This helps MRO buyers identify patterns in supplier performance, so they can work proactively to make improvements.
  • Stronger MRO contract compliance: AI can help MRO buyers monitor supplier performance against the terms of their contracts. This helps ensure that MRO contracts are being followed and that suppliers are meeting their obligations.

Collaborative Software and MRO Procurement

Collaborative software is now ubiquitous across business functions. But it has the potential to change how procurement professionals interact with suppliers and the rest of the business. Collaborative software provides a platform for MRO buyers and suppliers to communicate, collaborate, and problem-solve.

By implementing collaborative software in the MRO procurement function, businesses can expect the following:

  • More effective supplier communication: Collaborative software provides a dedicated virtual space where procurement professionals and suppliers can communicate. This eliminates the need for long email chains or communication over multiple channels.
  • Improved supply chain agility: Collaborative software can help MRO buyers collaborate with suppliers in real-time when disruptions impact the supply chain. This is an important capability in a time when disruptions can come out of nowhere and cause years-long challenges.

Accelerate Digital Transformation in MRO Procurement

Digital transformation is important for companies in all industries, and the MRO procurement department is no exception. New technologies can help MRO buyers accelerate their digital transformations. Once implemented, the function can use its new tools to reduce costs, improve efficiency, and significantly improve supplier performance.

To learn more about how you can transform your MRO procurement function, don't miss ProcureCon MRO 2022, happening from October 17th to 18th at the Hyatt Regency in Atlanta, Georgia.

Download the agenda today.

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