Tips to Reduce Maintenance, Repair & Operation Costs for Your Company
Every industry requires a set of services and materials to maintain, repair and operate their facilities, machinery and equipment in order to smoothly run its operations. The proportion of items involved in this process are called MRO items.
This vast line of product involves items like lubricants, repair components, safety tools, and many other items that has no direct relations with the end product. Since these items are priced lower and have no core connection to the end product, their management are often underestimated by industries.
However these products add and pile up to form a substantial part of company costs, which if managed properly can have a good cut in overall spending of the company.
The first step in managing MRO costs is to briefly analyze the spending of past 12 months. The crucial information that must be tracked are units purchased, product information and cost per unit. This must be done for each category thoroughly. After gaining visibility and insights from the past reports following strategies can help your MRO cost control plan.
· Consolidating Suppliers: Having too many suppliers is surely not a good option and only adds to lack of control. For better management, you must focus on having few competent suppliers who can serve your purpose throughout the year. This will enable better control on your purchase and substantial cost savings. Having few suppliers can fetch you better deals as you are granting larger portion of spend to a smaller supply base. Moreover you will have better and direct engagement with supplier base which will enable you to have better control.
· Unnecessary Consumption: Ground support and staff must be made aware regarding the usage of MRO items. The key to cut costs is to avoid unnecessary consumption of items. Standard quantities required must be projected and usage must be taken against that benchmark.
· Order Optimization: Analyzing usage of items over time can give a good insights on how to optimize orders. This will provide for requirement of products over peak times or during average times of the year, so that quantities will be purchased in accordingly and will lower transportation and other costs.
· A better supply chain model: Many companies are not able to cut their MRO costs because of poor supply chain model. Aligning your company with the suppliers and distributors that provides highest value can significantly result in cost saving.
About Technical Beacons
Over the course of 5-plus years, Technical Beacons has established a reputation as a premier MRO supplier in industrial chemicals across Saudi Arabia. They have a qualified team of professionals who have an in depth knowledge of products offered and building an optimum supply chain for your industry. Technical Beacons specializes in providing safe and better quality products for industries ranging from surface protection & treatment, paint and galvanizing and the different types of adhesives & sealants and much more.
Optimize MRO supplies for your industry with Technical Beacons at Technicalbeacons.com