LTAs: Price vs Total Cost of Ownership
Published November 15, 2012
A major food company hired me to find out why their MRO inventory was increasingly out of control. Upon investigation, I determined that their Corporate Procurement was very strong in that all plants must use the Long-Term Agreements (LTAs) negotiated for the five categories of MRO. Severe penalties occurred if there was non-conformance, i.e. buying […]Read Full Post
MRO Stores and Reliability
Published September 21, 2012
Our family has a home on Long Beach Island along the Jersey shore (beach house to some) and, no, it is not “The Jersey Shore.” We have a 24-ft. Harris with an inboard motor that we use for skiing and fishing. Everyone agrees that it is important to have a reliable boat when you want […]Read Full Post
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 […]Read Full Post
The Ultimate 3PMRO Process
Published June 22, 2012
Fred, the purchasing director for ICE Fish Co, has recognized that the MRO storeroom consumes an inordinate amount of personnel time from all departments. The MRO buyer is totally consumed with stock-outs and rushes which causes users to build up secret sub-stocks to guard against stock-outs. Accounting processes over 35,000 transactions; over 20% requires additional […]Read Full Post
Why Can’t We Do It Ourselves?
Published June 17, 2012
HAVE YOU BEEN ASKED THIS QUESTION BY MANAGEMENT? To release value from our MRO operations, do we need to outsource our MRO storeroom to a 3PMRO provider? Why can’t we obtain the lower price, the asset recovery dollars and the critical storeroom reliability ourselves? The purpose of this article is to outline the answers to […]Read Full Post