Published June 6, 2011
In a recent presentation on MRO outsourcing for a PDM (professional development meeting) at a professional organization, the topic was, “You Can’t Be Lean with a Fat MRO Storeroom.” The goal was to alert the members as to the value that can be released from the MRO stores process by utilizing a 3PMRO provider.
During the networking period, a member indicated that she was the MRO buyer from a major manufacturer who consumes MRO. Oh, boy … will she be afraid that her job will go away via the MRO outsourcing process?
After the PDM, she raised her hand and I thought, “Uh oh … here it comes.”
She said that everything I had presented about “fat” storerooms was true in her company. “Our storeroom is a mess,” was her comment. She said that she has constant pressure from her management to reduce MRO costs. Her frustration arises from the refusal of users to utilize her cost reduction programs in the midst of this management pressure. The example she verbalized was a simple glove restoration and cleaning program which would reduce glove costs by 45% with a corresponding reduction in spend for the category. The glove users said, “We will only use new gloves; no way will we use reprocessed gloves.” Although relatively small in the overall spend, these small things, when aggregated, can contain significant bottom-line contributions. They can be the difference in a profit or loss scenario.
The point: This MRO buyer recognizes that her company needs the benefits that an expert 3PMRO provider can achieve and is willing to be the champion to effect the change. She has now “sold” the concept to her management as her total MRO cost reduction and has received “C” level support for her program.
The glove users will now utilize all the benefits… including the use of cleaned gloves.