The era of Digitization in MRO procurement: How your organization can save BIG in indirect spending!
MRO, which stands for Maintenance, Repair, and Operations, is a buzzword that’s of great significance in industrial procurement. Often overlooked in favor of other purchases, most businesses’ MRO procurement supply chain is highly fragmented and greatly dependent on manual procedures. This can be a costly mistake because digitizing MRO procurement can bring in savings as high as 15%.
Although the procurement of various other inventories and services like raw materials, capital equipment, and facilities contracts are witnessing rapid digitization, MRO procurement remains weighed down by tedious manual procedures. If your organization has yet to catch up with e-procurement solutions, the time may be just right to bring about some much-needed digitization in MRO now.
4 ideas to help your organization save big on MRO procurement:
- Cost savings via vendor consolidation
The network of vendors for MRO procurement is highly fragmented. This makes it much harder for businesses to manage vendor contracts and standardize procurement costs. Digitization of the process helps turn this around by identifying and consolidating the best vendors in the market. Your organization can then rely on a streamlined network of vendors to meet its MRO requirements in a cost-effective manner and bring you real-time track and trace visibility of your current suppliers.
- Optimization of inventory
Ineffective inventory management may lead to a shortage of MRO supplies or overstoring MRO items can slowly eat your costs. In fact, poor internal MRO supply chain practices lead to over 40% of unplanned downtime. Rushed procurement to meet emergency needs can then result in cost-based compromises. But with digital procurement plans in place, you can be assured that MRO inventory in your organization will be sufficiently optimized to meet demand seamlessly and keep logistics cost reasonable.
- Reduction of losses related to compliance and quality issues
Compliance and quality issues in MRO supplies often lead to unexpected additional costs for organizations. A digital interface makes compliance easier and simultaneously offers quality assurance for MRO supplies. In turn, this allows organizations to save money on rectifying or dealing with the problems associated with low-quality MRO inventory.
- Complete automation of the purchase-to-pay journey
Digitization in MRO also eliminates a host of low-value tasks in the journey from MRO purchase to payment. E-invoicing, digitization of inventory management, ERP integration, and digital payments all help plug cost leakages in the manual purchase-to-pay journey. Automation also improves the overall efficiency of procurement processes and gives your organization a competitive advantage.
Transform your MRO procurement today
Chief Procurement Officers across the globe are prioritizing e-procurement in the MRO supply chain. To stay ahead of the curve, you need to give your MRO purchases a digital upgrade with the latest solutions from Moglix. We revolutionize conventional procurement procedures with a digital transformation approach and optimize procurement through Vendor Consolidation, Digital Catalog for MRO supplies, Moglix-powered stores, and VMI to manage your inventory. Looking forward to transforming your procurement? Just send us your business query at firstname.lastname@example.org