Transforming your maintenance repair and operations (MRO) can be as easy as changing just five small things, or so says ERIKS UK. From using a supply partner to careful stock management, tweaking the way you work can actually turn maintenance into a real revenue driver. Here are the company's top tips for finding your way to MRO savings.
1. Save 1 - 3% by using a supply partner
Having the right people, doing the right jobs can save you money. An engineer sourcing and purchasing parts is a waste of their time and skills. By using a supply chain partner, they can take the pressure off and leave your staff to focus on doing what they do best — keeping your operations ticking over.
2. Save 3 — 15% by using technology to help inform stock and purchasing decisions
Supply chain management is more than just what you have in stock, what you buy, and in what quantities. You must know and understand your business processes, and the technologies in use, in order to be more efficient and cost effective.
With this knowledge in place, it is then possible to apply new methods, processes and technologies that will help your business to become more efficient and potentially gain competitive advantage.
3. Simplify your supplier contracts and save 5 - 18%
By simply reducing the number of purchase orders raised or getting products to your stores sooner — a close one-supplier relationship can save you time, money and resource.
But don’t stop there. The most effective sole supplier relationship is an on-site one; enabling the supplier to become more of a partner and a true extension to your team. With a greater understanding of site operations, the supplier can use this experience to your advantage, facilitating improved operational efficiencies and reduced purchasing costs.
4. Careful stock management can save 5 — 15%
A detailed inventory of stock is essential; helping to avoid duplicate purchasing, lost stock, un-useable stock or even stock-outs. A good stock management system will ensure you have the right parts and equipment, when you need them and at the most competitive price.
Stock availability and accuracy should be in excess of 95%, with a stock retrieval time of under 60 seconds, from point of confirmation. If you can’t meet that figure, your storeroom isn’t up to scratch.
5. Streamline your MRO management, procurement and stock and save 2—3%
Introduce e-commerce and e-catalogues that integrate with your existing systems, to help streamline processes. If you get the reporting and administration right, it can be half the battle toward greater efficiencies; shortening the procurement process, speeding up sourcing and approvals and providing paperwork trails to help with reporting.
Where the true value of on-site solutions comes into its own, is the real know-how that these teams can provide. Acting as a consultant within your business, the on-site team can use its application knowledge to understand how and why equipment is failing and to ultimately find a solution; rather than just reducing the acquisition cost.
Waste, markdowns and equipment write-offs costs UK businesses thousands of pounds every year. By identifying and adopting best practice in supply chain management, you can achieve much more than simply reducing purchasing costs. With the potential to turn maintenance into a revenue driver, why would an organisation not make the call to change?
For more information on ERIKS UK, please visit www.eriks.co.uk