How site buyers can best manage MRO equipment and supplies

6 June 2024    By Heidi Humphries


Managing Maintenance, Repair, and Operations (MRO) equipment and supplies efficiently is crucial for maintaining operational continuity and cost-effectiveness. DSSI offers a comprehensive suite of services and tools designed to help procurement site buyers optimize their MRO processes, reduce costs, mitigate risks and enhance overall site performance. 

This article delves into how we can help you achieve these MRO inventory management goals through optimal pricing, timely deliveries, assistance with urgent situations and access to delivery information.

The impact of poor (MRO) equipment and supplies management

When site buyers are unable to effectively manage their maintenance, repair, and operations (MRO) equipment and supplies, it can lead to several negative consequences that impact operations, costs and overall business performance. These can include:

  • Production downtime and delays: 
    • Lack of critical spare parts or supplies can result in equipment breakdowns and unplanned downtime, disrupting production schedules and causing delays in meeting customer orders.
    • Inefficient inventory management can lead to stockouts of essential MRO items, halting operations until replacements are procured.
  • Increased maintenance costs: 
    • Reactive maintenance due to poor planning and inventory management often results in higher costs for emergency repairs, expedited shipping and outsourced services.
    • Overstocking or understocking of MRO inventory can tie up working capital or lead to unnecessary rush orders and premium pricing.
  • Compromised product quality:
    • Faulty or worn-out equipment, due to lack of timely maintenance and repairs, can lead to defects and inconsistencies in product quality.
    • This can result in increased returns, customer complaints and damage to the company's reputation.
  • Safety and compliance risks:
    • Inadequate supply of personal protective equipment (PPE) or safety-critical components can expose workers to potential hazards and accidents.
    • Failure to maintain equipment properly can lead to violations of regulatory standards and potential fines or penalties.
  • Inefficient procurement processes:
    • Poor visibility into MRO inventory levels and consumption rates can result in inefficient ordering practices, excessive transaction volumes and higher administrative costs.
    • Lack of supplier consolidation and strategic sourcing can lead to higher prices and missed opportunities for volume discounts.
  • Reduced operational efficiency:
    • Unplanned downtime, quality issues, and inefficient procurement processes can collectively reduce overall equipment effectiveness (OEE) and operational efficiency.
    • This can impact productivity, lead times and the ability to meet customer demand.

Effective MRO management requires a proactive approach, involving robust inventory control systems, strategic supplier relationships, and integrated maintenance planning.

Timeliness of deliveries

As outlined, one of the critical aspects of procurement is ensuring that deliveries are made on time. Supply chain disruptions can lead to a 3-5% increase in expenses and a 7% decrease in sales. This doesn’t include the knock-on effect this can have on disrupted operations, production halts and supplier relationships. We address this challenge through our robust procurement technology and integrated supply solutions, including:

  • Real-time data exchange: DSSI's platform integrates seamlessly with existing ERP systems, enabling real-time data exchange. This ensures that procurement data is accurate and up-to-date, facilitating timely order processing and delivery, ensuring accuracy and consistency, streamlining workflows and reducing manual data entry.
  • Order tracking: The platform provides real-time tracking capabilities through a single portal to track shipments across all suppliers and various global carriers. This visibility helps ensure that products are delivered to the correct destination and on schedule, allowing users to view the name of the team member who signed for the delivery.
  • Automated workflows: DSSI's automated workflows streamline the requisitioning, approval, and purchase order processes, reducing manual intervention and speeding up the procurement cycle. This efficiency helps ensure that MRO supplies are delivered promptly.

Assistance with urgent situations

In the fast-paced world of procurement, urgent situations are inevitable. Whether it's an unexpected spike in demand or a critical supply chain disruption, DSSI offers solutions to handle these challenges effectively.

  • Urgent order support: DSSI provides rapid response services for urgent orders, ensuring that critical MRO supplies are sourced and delivered quickly. This includes urgent processing of POs, RFQs and Spot Buys as well as assistance with expedited shipping.
  • Vendor Managed Inventory (VMI): DSSI's VMI services allow suppliers to manage inventory levels on behalf of the customer, ensuring that essential MRO supplies are always available. This proactive approach helps address urgent needs without delay. Check out how we saved one manufacturer nearly 34% with vendor managed inventory. 
  • Flexible reordering methods: The platform supports various reordering methods, including interfacing with internal min/max levels, scheduled orders and vendor managed ordering (VMO), ensuring that critical items are prioritized and reordered promptly in urgent situations.

Access to delivery information for AP approvals

Efficient AP processes are vital for maintaining good supplier relationships and ensuring smooth financial operations. DSSI provides comprehensive tools to facilitate AP approvals through detailed delivery information:

  • Invoice reconciliation: DSSI's platform offers detailed invoice information, including item tracking and proof of delivery. This transparency supports efficient invoice reconciliation and ensures that all necessary information is available for AP approvals.
  • Consolidated invoicing: The platform consolidates invoices, providing a single, detailed invoice that includes all relevant delivery information. This simplifies the AP process and reduces the risk of errors.
  • Automated approval routing: DSSI supports automated approval routing, ensuring that invoices are approved quickly and efficiently. This reduces delays in payment processing and helps maintain positive supplier relationships.

DSSI's comprehensive procurement solutions offer significant benefits for procurement site buyers managing MRO equipment and supplies. By ensuring timely deliveries, providing robust support for urgent situations and facilitating efficient AP approvals, we help site buyers reduce costs, mitigate risks and enhance overall site performance. 

Leveraging DSSI's technology and expertise can transform MRO procurement processes, leading to improved operational efficiency and substantial cost savings.