RS India as a part of its global approach Components has created a formalised end-to-end process that can be applied to all customers to help them achieve significant savings in MRO procurement.
In Oxford, UK the Value Process was marked with the launch of a portal sharing valuable information, including white papers developed in partnership with Manchester Business School and a Linkedin group ‘RS MRO Procurement’. RS conducted in-depth research to unveil inefficiencies in MRO procurement, from which it developed the Value Process, focusing on optimising a range of key areas to unlock savings.
RS has an unrivalled data capability when it comes to customer information that is why RS decided to use this as the basis to explore consumption habits to find the inefficiencies in MRO procurement. The goal is to help customers achieve savings, as many of them are aware of inefficiencies but do not know how to address them or believe it is too large or troublesome a task.
It is discovered that the true cost of MRO procurement is a ratio of 3:1 of procurement versus product costs. A staggering figure shows just how important analysis of consumption is in unveiling savings
The process covers five key areas: optimisation of product, inventory, supplier and process, and pricing solutions. RS has concluded that concentrating on fewer, better quality products that can reduce energy consumption and maintenance costs; reducing stock to improve cash flow and avoid cases of obsolescence; and reducing downtime in supplier management, ordering and invoices can reap savings of up to 35 percent on MRO.
In addition, once the key areas have been optimised, the pricing solutions can be addressed and in many cases, customers can gain better deals.
