This one is dedicated to Marty Luciw.
Over the last two years, I have had a number of engagements where I do an in-depth review of MRO spending.
If you are interested in doing the same thing then thankfully Ravi Nishant put this document that others can use as a reminder of what to do. Or you can simply ask me to give you a hand. Or talk to Marty Luciw
What I have observed is that MRO purchases are often not fully scrutinized. In fact, when I did my analysis I found that savings were possible with the right supplier.
What is noticeable when I think of all the reviews that I have done is that often times there might have been way too many suppliers that were doing daily deliveries. If this happens in your operation then there is a good chance that supplier consolidation is possible.
An area of concern I have is where there are a large number of slow-turning items. How slow you ask? In a few cases, I have seen where there were 10 years’ worth of stock on hand. Another gap is that inventory is stocked in a variety of locations. You have too many items in one place and none in another. This means one location is ordering while the other location has too much.
Marty Luciw helped with one of my last reviews and I am happy to say progress was made.
Please note that not all the issues outlined above apply to every review that I have done recently. My observations might be enough so that you might think and start to wonder how many are applicable to your organization.