Published March 5, 2012
A recently conducted scientific study focused on the relationship between MRO, total spend and the amount of purchasing time spent on each category. This is what the study revealed:
Total Dollars Spent:
Production and Capital: 96.5%
Allocation of Purchasing Time:
Production and Capital: 23%
Only 23% of purchasing’s time was spent on 96.5% of the total dollars spent.
Why does this condition continue to exist?
Experience shows that MRO stores’ spend is of such a low value that it generates a low or zero priority. Companies just do not seem to realize the burden they assume in operating the MRO process. Maintenance managers, as well as maintenance management companies, strive for excellence in their operations via “Lean”, “Six Sigma”, etc. and yet they walk right by the MRO storeroom which should be labeled an MRO storm room.
They do not recognize the drain on their attempts to strive for excellence or they do not know how or what to fix. So the beat goes on!
The largest percentage potential cost recovery is riding low on Shetland ponies… it can’t be seen. The cavalry is shooting high at perceived high priority cost recovery measures.
Now is the time to shoot low at the Shetlands and win!