An MRO Wish List for the New Year

By George E. Krauter

December 29, 2017 at 1:40 PM

Looking back at the year that has just flown by, procurement managers have much to be proud of…and some challenges to be frustrated about.  One area of concern is MRO. On average, although MRO spend is only about 7% of the procurement manager’s total procurement responsibility, problems emanating from the MRO supply chain routinely take up 85% of a procurement manager’s time.

To help resolve this situation, a wish list (which should get transformed into a priority list, to make sure 2018 ends up being as somewhat happy year) should consist of the following:

  • Maximum control over MRO audit trail charge backs and authority to issue.
  • Methods to optimize worker time when MRO is unavailable.
  • Minimized down-time caused by MRO stock outs.
  • Obtain best price/service scenario with fewer supply chain members.
  • Installation of a master data plan to have constant SKU descriptions to eliminate inventory duplications while having the correct part on hand when needed.
  • How to eliminate duplications in the MRO supply chain.
  • Ways to reduce transactions to recover the unbalance of MRO vs. production acquisition costs.
  • Higher fill rate percentages with optimum inventory control.
  • Elimination of unauthorized MRO purchases.
  • Recovery of pockets of uncontrolled inventory throughout the plant.
  • Find a mutually profitable path to utilize supplier expertise for plant reliability.

 If these wishes can come to fruition, chances are good that procurement mangers will be well on their way to fulfilling their company’s goal of a totally reliable plant that produces a constantly reliable family of products for our market.

 All the best for positive progress in the new year!  



Tags: MRO plant reliability MRO supply chain MRO Cost
Category: Blog Post

George E. Krauter

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George Krauter, former founder and president of Industrial Systems Assoc. [I.S.A.] has retired as vice president of Synovos.

Currently, he has initiated, "George Krauter Consulting [GKC]"  for effective reliability and cost recovery for consumers  of MRO materials. George is a recognized authority on the management of the MRO supply chain and support for maintenance reliability programs. His book, "OUTSOURCING MRO...FINDING A BETTER WAY" is available from Amazon and from Reliability Web.com.

He is published in Uptime, Modern Distribution Management, and Supply and Demand Chain Executive. George has conducted seminars across North America, in Europe, and in the U.A.R. as well as a guest speaker at Temple U., Howard U., Duke, and MIT.

George is a graduate of Temple University; he lives with his wife, Joyce, in Bucks County, PA. All grand kids live within eating distance. He can be reached anytime:   georgekrauter@comcast.net.



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