MRO Due Diligence

The Client

A world-leading Logistics Solution and Services provider covering all aspects of global movements of documents and parcels using a combination of air, sea, ocean and rail freight and direct mail. The organisation has employees in over 220 countries and has circa 360,000 employees.

The client was preparing to take on an outsourced procurement and supply chain service with one of its main UK customers in the area of 3rd party spend in their maintenance areas. There was no category subject matter expertise within the client as this was a new area of managed spend for them to control on their customers behalf.

For their customer, this had been a fairly untapped area of attention in the past and there had been no co-ordinated collaboration across the existing facilities maintenance teams throughout the UK. The common data across common parts and suppliers was not available and structured differently by different buying teams.

The Objective

To develop a comprehensive business case and cash flow analysis for our client to take forward with a detailed implementation plan and key risks identified.

Odesma Impact

We brought in a small team of spend analysts and maintenance category SME’s firstly to set up a spend analytics B.I. dashboard for our client to understand the high levels of spend and specific suppliers that were currently providing the various maintenance products and services.

Using this data, our SME intelligence and our benchmarking data, we provided a detailed opportunity assessment and business case, including ROI, for the delivery of improved value from our client taking on the outsourced service from their UK customer.

The business case included detailed sub-category opportunity assessments with short/medium and long term initiatives for specific materials and services spend areas and key suppliers.

The Results

Over a 3 month period we cleansed all of the customers data and set up a spend data cube of all of their suppliers and spend with a concentration on the top 80%/Pareto due to tight contract timescales.

We provided a full due diligence assessment for our client to take on the outsourced service which involved 20 major facilities maintenance sub-categories and detailed analysis of the top 100 suppliers. We bench-marked all of the key-spend areas with “like for like” products and services and provided a full lead-time impact assessment for the “on take” of the outsourced service.

In addition, we provided an analysis of slow-moving stock and existing purchase order analysis to outline any long-term commercial risk for our client – the project was completed on time and within budget.