There Are MRO Buyers and then There Are MRO Buyers

Published July 30, 2012

Most integrators have the concept that no one can initiate (sell) an ISP (Integrated Supply Program) to MRO buyers because those buyers think their job will vanish or the job is lessened, etc. (I have always contended that, if the job is not really necessary, it will go eventually.)

This concept is generally true when the MRO buyer is charged with price only considerations … the strategy. However, there are shining examples of MRO buyers who can conceptualize opportunities and provide reliable value to their employers. Here is a recent example.

A production plant produced a reliable product which caused the company to go 24/7 and double the work force. Ms E, the MRO Buyer, now has three times the requests and still must adhere to company audit trail requirements. She could be an MRO buyer, process what she could and go home at 5:00. She recognized that parts requisitions (stock and non-stock) were out of control. She recognized that some suppliers would accept requisitions around the audit trail because of the urgency of filling the needs of the new production requirements.

She put in VMI (Vendor Managed Inventory) and vending which is okay for some parts. It did not solve the great drain on the company caused by out-of-control MRO. Like trying to corral cats, now she recognized that 3PMRO expertise was the only way to corral these MRO cats.

Ms E’s KPIs (Key Performance Indicators) were instituted by the 3PMRO company. All needs were satisfied; but most of all, Ms E now has control over all the variances that occurred with complete adherence to the company audit trail.

What happened to Ms E’s MRO job?

3PMRO runs the MRO operation. There are no POs to place, no expediting and little to no stock-outs.

Has she worked herself out of a job?

This is what happened.

Ms E reviews the 3PMRO KPI performance about one afternoon twice per month! She now concentrates on production paint (critical), production reworks, production parts suppliers. Still an MRO buyer with expanded duties that never would have occurred without her work ethic, the pain she experienced when she saw the abuse and waste of company dollars and the determination to do something about it.