Maintenance, Repair and Operation (MRO) Parts from Specialist:
MRO purchases make up only 8%-12% of a typical company’s expenditures.
MRO account for 60% - 80% of the transactions time (Selecting various suppliers, sending RFQs, many contracts, accounts payables, No. of customs clearance declarations etc)
The true cost of MRO material is estimated to be 60% price and 40% process.
It takes a lot of time and manpower (purchasing, accounting, finance, maintenance, engineering) to make and process MRO purchases, not to mention the headaches and inefficiency of managing hundreds – sometimes thousands – of suppliers.
But when you outsource all these functions to single source, you gain a huge savings in cost reductions and efficiencies, because every single transaction is accounted for and standardized.