IN FOCUS: STRATEGIC SOURCING

IN FOCUS: STRATEGIC SOURCING

How important is strategic sourcing in the MRO world?

Let’s answer a question with a question: How important is it that your facility continue to manufacture a product? Or your facility continues to operate as planned?

We define strategic sourcing as the deliberate, planned execution of a purchasing strategy that factors in data quality, spend analysis, current/historical market conditions, risk, safety and more. The objective is to supply the necessary MRO materials to enable reliable production with minimal downtime and limited negative impact to profits.

Downtime happens. Being prepared for it, though, creates an environment for even stronger process improvements and maintenance effectiveness. Strategic sourcing, with a defined stocking strategy backed by strong supplier relationships, contributes to more effective planned maintenance and more consistent production with less downtime. All of which translates to higher profits.

Additionally, strategic sourcing enables vendor consolidation and leads to stronger supplier compliance. It’s where supplier rationalization and supplier optimization work hand-in-hand to build an effective strategic process.

You can view MRO at the part level and work to save a few dollars on each purchase, or you can leverage the information you have around inventory volume, issue frequency, purchasing patterns, market conditions and more to ensure a stronger more effective supply chain.

It all depends on how much you value production.

Available resources:

How to Use MRO Strategic Sourcing to Drive Savings?

What is MRO Procurement?

Procurement Culture: Challenging the Old, Developing the New

The Evolution of Integrated Supply: From Piece Price to Total Cost of Ownership

Case study: West Coast Pharma: 30% Cost Savings and Compliance Boost

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Andrew Duke

Director of Vendor Relations at Radwell International Europe

5 个月

Radwell International would interested opening up talks regarding Purchasing Surplus Inventories stock with RS Stores Contracts as we have done with a couple of your UK Plants. [email protected]

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