Effects of e-Procurement on the MRO industry
In recent years the maintenance, repair and operations (MRO) industry have made notable efforts to encourage customers to make purchases through e-Procurement platforms. As a result, customers have increasingly enjoyed the benefits of fast, efficient and paperless transactions when ordering their consumables, industrial equipment and operation upkeep supplies.
Use of e-Procurement has seen a great boost since 2009, especially for MRO providers who focus on multiple categories and brands. Thanks to this, buyers are now in a better position to consolidate their current list of suppliers.
Getting to know procurement in the MRO industry
The main focus of e-Procurement is to ensure that customers can get the exact product that they need in a way that is more effective in terms of time and costs. As a result, this radical procurement transformation has helped with sourcing savings, while optimising supply relationship managements. This has also meant that organisations have made real cost reductions, which can range between 5–10%.
Thanks to paperless transactions, all communications and invoices are sent through the platform. This means that organisations can bypass conventional transactions, reducing the amount of time spent on procuring the goods and items that they require.
How do MRO buyers benefit?
The MRO industry has facilitated several new e-Procurement strategies for buyers. Some of these include:
- Spend tracking: by enabling customers to track their expenditure on specific items, e-Procurement solutions for MRO supplies helps users to tighten their expenses and see which items they order most frequently.
- Great competition: buyers want to become a supplier’s primary client to ensure attractive pricing and prompt delivery. By consolidating their spend in different MRO categories to a few select suppliers, buyers can get long-term contracts with competitive pricing.
- Streamlined inventories: thanks to the online facilities of MRO suppliers, buyers can maintain a lean inventory, especially if they share an up-to-date list of the items they need and predicted demand with the supplier. This can help to reduce the delivery time on essential items, while simultaneously improving efficiency.
E-Procurement is rapidly transforming the MRO supply industry and has allowed sellers to boost sales, ensure transparent procurement and facilitate paperless transactions.
Nick has over 30 years procurement experience in consulting, outsourcing and line roles within industry with international experience across many sectors and industries and led many procurement programs with blue chip organisations.