Research shows that the typical pharmaceutical manufacturing plant has an MRO spend of roughly 6-10 percent of the site’s overall spend. So, a site spending $50 million annually, exhausts $3 million of that on MRO materials necessary to maintain the facility. Percentage wise, it’s not a lot.
Yet, experience demonstrates that MRO eats up a significant portion of transaction costs. By some estimates, 80%. That’s 80% transactional costs for 6-10% of a company’s overall spend.
As a result of such a time drain, manufacturers often struggle in developing a strategic approach to how those parts and services should be managed, missing opportunities for efficiency gains in process improvements. While implementing an integrated supply program is clearly a step in the right direction, program champions rightfully ask: “Is there more we should be doing?” The answer is yes.
This webinar, hosted by Pharma Manufacturing magazine, looks at the MRO supply chain from the manufacturer’s perspective in recognizing the need to seek outside help in managing the MRO supply chain, understanding how the different departments – maintenance, engineering, procurement, manufacturing and finance – impact that program, and identifying how a continuous improvement strategy and program can address some of those core issues.