Category Management Process Maximizes Supply Chain Efficiency by 60% for MRO Service Providers – A Study by SpendEdge

SpendEdge, a well-known procurement intelligence solution provider, has
announced the completion of their latest category
management study for an MRO service provider.

This press release features multimedia. View the full release here:
https://www.businesswire.com/news/home/20190111005221/en/

Category management study for an MRO service provider (Graphic: Business Wire)

MRO supply companies offer a multitude of products and services
that are crucial for day-to-day operations. However, due to the large
decentralized user base and millions of items and transactions, their MRO
supply category has a higher chance of spend leakage. They need to
identify opportunities and prioritize initiatives to determine all the
sources available for spend optimization across all departments and
business units to gauge the growing the market opportunities. They
require efficient MRO supply models that can drive compliance
throughout the organization and ensure spend efficiency through
continuous monthly audits, post-implementation.

According to the procurement experts at SpendEdge, “It is crucial
for MRO supply companies to leverage spend analysis solutions
across different supply chain categories and identify the tail spend
opportunities to minimize spend leakage and achieve savings."

The Business Problem: The client is
one of the leading MRO service providers in the United States and ranks
among the top ten in the world. They offer services such as upgrades,
modifications, maintenance inspections, and refurbishments for a wide
range of aircraft OEM platforms. Enormous growth due to advanced
technologies, consolidations, and emerging markets opportunities caused
continuous disruptions in the MRO supply chain, which resulted in
major losses. This compelled the client to leverage SpendEdge's
expertise and devise strategies to navigate the market landscape, ensure
business continuity, and position themselves competitively.

Managing materials and labor costs in the face of tightening MRO
supply chain functions is a challenging task for companies. Talk
to our experts and know how to gain control over
demand planning and inventory management by incorporating the industry’s
best practices.

The Solution Offered: The category
management experts at SpendEdge helped the client to address the MRO
supply chain challenges. They adopted a comprehensive four-step
approach that enhanced the efficiency of the MRO supply chain by
over 60%. The approach offered by category management experts
empowered the client to gain better visibility into the MRO spend and
identified savings opportunities present within the MRO supply chain.
Apart from devising competitive MRO pricing strategies, SpendEdge’s category
management process enabled the client to maximize savings through
supplier consolidation. They were also able to streamline centralized
billing processes to minimize administrative and MRO supply
costs. Moreover, the category management process helped the
client to optimize and manage millions of SKUs, itemize current price
points across all facilities, and drive compliance throughout the
organization.

Many MRO companies are forced to make spot buys on a daily basis,
which makes it challenging to effectively manage spend. To evaluate and
optimize the current MRO supply chain, Request
a free proposal today!

SpendEdge’s category management process helped
the client to:

• Maximize their supply chain efficiency by over 60%.
• Ensure spend efficiency through continuous monthly auditing services,
  post-implementation.
• Does your MRO spend consume more than 3% to 10% of the overall
  procurement budget? Request
  a free demo and know how our category management process
  can better spend visibility across the MRO supply chain and improve
  spend management capabilities.

SpendEdge’s category management process also
offered predictive insights on:

• Optimizing and managing millions of SKUs.
• Incorporating best industry practices such as vendor managed inventory
  (VMI), inventory consignment, industrial vending, and order point
  optimization.
• Read the complete article to know more: https://www.spendedge.com/casestudy/mro-supply-chain-category-management

About SpendEdge:

SpendEdge
shares your passion for driving sourcing and procurement excellence. We
are the preferred procurement market intelligence partner for 120+
Fortune 500 firms and other leading companies across numerous
industries. Our strength lies in delivering robust, real-time
procurement market intelligence reports and solutions. To know more, https://www.spendedge.com/request-free-proposal

View source version on businesswire.com: https://www.businesswire.com/news/home/20190111005221/en/