Proven MRO Procurement Strategy To Reduce Cost

1. Proven MRO Procurement Strategy To Reduce Cost

2. MRO (Maintenance, Repair and Operation) procurement poses unique challenges, as it’s a fragmented industrial supply market that’s driven by historical buyer behavior and supplier relationships. As the area covers a significant number of products and materials, measurement and price validation; it can become challenging, especially if your supplier’s pricing methodologies are not transparent — and that is where Paragon’s MRO procurement strategy can assist you.

3. MRO procurement might be one of the most important but most overlooked indirect spend categories within an organization. The Chartered Institute of Procurement and Supply defines MRO as any item that plays a part in restoring or maintaining a system or piece of equipment so that it can function in the required fashion. MRO is an indirect spend category because the items purchased under it are a necessary part of the production process but are not the final product.

4. Most large companies have advanced procurement functions that bring discipline to sourcing big-ticket products and services with the exception being – Maintenance, repair, and operations (MRO)—because it’s an extremely challenging category to manage. MRO items may or may not be tied into the central purchasing software system or Enterprise Resource Planning (ERP) package, rendering them invisible as part of the total spend and disconnected from the company’s spend analysis and budget—along with its hierarchy of accountability and approvals. Like a lot of companies, your procurement team likely understands the importance of plugging this gap in your procurement strategy, but it can be an uphill climb when you’re facing issues such as: • Invisible, decentralized spending • Wasted talent and time • An emphasis on cutting costs instead of building value • Lost, misplaced, and redundant inventory

5. What’s our goal for you? It’s about total cost of ownership. Therefore, we help clients go after operational improvements in addition to price reductions. Often the operational improvements bring as much or more value to the business than the transaction and acquisition cost reductions. We’ve helped save billions of dollars for our clients through better spend management, process automation in purchasing and finance, and reducing financial risks. Beginning with a thorough spends analysis; Paragon takes a collaborative approach to developing MRO procurement strategies and streamlined value- generating initiatives. Once the right mix of MRO suppliers are identified, we even assist in developing contracts, managing the implementation lifecycle, and developing metrics for tracking savings and compliance. ● ● ●

6. What our process? Assessment Distribute RFx Analyze proposal Negotiation Supplier selection Implementation ● ● ● ● ● ● Our proven MRO procurement strategies are helping businesses better understand, analyze, and improve their MRO spend.

7. Contact Details Address 1000 Parkwood Circle, SE, Suite 900, Atlanta, GA 30339 Contact No. +1 (630)-273-5231 Email info@paragonresults.com Website https://paragonresults.com/