Managing Procurement and End-to-End MRO Supply

Apr 29, 2024

Many companies require a stock of spare parts, supplies, and other materials to ensure their operations run smoothly. Manufacturers need readily available components and tools for machine repairs and production line maintenance. On the other hand, retailers and service organisations need essential items such as light bulbs, cleaning materials, and office supplies.

All these items are categorised under one category: MRO.

Keeping your operations running smoothly relies heavily on procurement and maintenance, repair, and operations (MRO) services. But unlike direct materials, not much attention is paid to these indirect materials, even knowing that they are critically strategic for any business.

It is also often assigned to overworked or inefficient staff who are already overworked or may not have the capability to run MRO operations smoothly. Implementing basic supply chain management practices will reduce costs for both processes and purchases.

This includes bringing MRO categories and items in the tail spend under control. With the appropriate resources and expertise, it is possible to make further improvements.

However, due to MRO being seen as a cost centre, it can be challenging to justify hiring experts or obtaining the necessary analysis tools.

In this blog post, we will explore ways through which we can improve processes to obtain the appropriate supplies at the right time for a reasonable price.

Understand MRO Procurement

Understanding the MRO Procurement

Since MRO supplies are essential for daily operations, including everything from cleaning products to spare parts, it is important to strategically source and acquire these supplies to reduce costs and avoid disruptions.

By effectively managing the MRO inventory and procurement supply, you find a win-win situation that induces cost savings and improves operational efficiency.

Key areas to focus on:
  • Standardisation

    : It involves consolidating different MRO items, which simplifies the purchasing processes, decreases inventory complexity, and may lead to improved pricing negotiations with suppliers.
  • Supplier Management

    : Build strong connections with a specific set of dependable MRO suppliers. Engage in negotiations to secure advantageously with well-defined terms and SLAs.
  • Spend Analysis

    : Have a look at your MRO spending patterns and identify areas for cost reduction and opportunities for consolidation

How to Streamline Your end-to-end Supply Chain?

It is challenging to manage the MRO supply chain due to various departments such as finance, maintenance, engineering, and purchasing. To effectively manage the MRO process, it is essential to bridge the gap between these departments.

Here are some key effective strategies to optimise your MRO supply chain:

  1. Establishing Clear Policies and Defined Processes:

    Establishing a strong foundation requires developing clear policies and well-defined processes. An efficient system relies on a solid foundation, which begins with establishing clear procurement policies. These policies serve as a guide, laying out the process for choosing vendors, placing orders, and managing inventory.
  2. Make Use of Technology:

    Using technology can enhance efficiency in the supply chain by automating processes and providing real-time information. It involves utilising software tools for real-time visibility and better decision-making. It is important to establish clear procurement policies as the foundation for an efficient system, outlining steps for vendor selection, order placement, and inventory management.
  3. Develop Strong Relationships with Partners:

    Creating strong relationships with partners is important in supply chain processes. By forming strategic partnerships with suppliers, businesses can ensure that they meet requirements and deadlines and offer competitive prices. Consolidating the supplier base and collaborating with them can result in cost savings. Establishing key performance metrics and entering into long-term agreements can help in evaluating supplier performance and negotiating better prices.
  4. Assess Your Transportation and Logistics:

    Review your current transportation methods for both raw materials and finished goods. Consider different scheduling and loading options to save money and time. Utilise data analytics and modern transportation technology to track your goods and make informed decisions. For instance, consolidating deliveries of raw materials is a more cost-effective choice.
  5. Utilising Data to Make Informed Decisions:

    Regularly reviewing and analysing data related to MRO procurement is essential for continuous improvement. By examining spending patterns, you can identify opportunities for cost savings, such as negotiating bulk discounts on frequently used parts or finding vendors offering comparable quality at a lower price.
  6. Customer Demand Planning:

    Customer demand planning is crucial for accurately predicting customer needs, even though initial forecasts from customers may not always be reliable. By incorporating market analysis, historical data, seasonal trends, and competitive factors, businesses can better understand and plan for customer demand. This comprehensive approach to planning can also result in cost savings within the supply chain.
  7. Examine Inventory Records:

    While warehouse management systems are useful for maintaining and examining inventory records, you shouldn't underestimate the importance of physical checks. Conducting regular physical checks results in an accurate prediction of the levels of stock and inventory. Without these checks, there is a risk of delayed shipments to customers or even unnecessary stock purchases, which are of no use.
  8. Risk Management Approach:

    To improve and simplify your supply chain and MRO processes, you must have an effective risk management approach for your supply chain. Start by identifying all potential risks at each stage of the supply chain, including worst-case scenarios. Then, brainstorm strategies to manage these risks, such as diversifying your supplier base.

    Since the role of the supply chain is effective in streamlining your business's operations, you must make regular use of these best practices, as it isn't a one-time fix. Moreover, it's an ongoing optimisation journey powered by data, collaboration, and a dedication to continual progress.


When it comes to managing and optimising your MRO and procurement supplies, you must know that it's not just about cutting costs but also enhancing performance while also paying much attention to how you can reduce downtime and disruption.

With Refteck by your side, you can create a more efficient and cost-effective system that keeps your operations running smoothly. We have a team of skilled professionals working to improve your MRO supply chain. They will help you save money, increase efficiency, and ensure your production continues without any interruptions.

Call us or get in touch with us to learn more about the MRO supply chain and maximise the efficiency of your business operations.

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