Transcription of mro indirect supply - DHL
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mro indirect supply - DHL
Mro indirect supply :driving new efficiencies in the indirect supply chainprocurement & logistics strategies for maintenance, repair and operations (mro) suppliesa white paper from the americas leader in supply chain managementPAGE 2In challenging economic times, companies look for new ways to control costs and improve efficiency. To address these issues, manufacturers are taking a hard, strategic look at Maintenance, Repair and Operations (MRO) supply . Commonly known as indirect materials, MRO supply includes a vast array of items that support internal operations, ranging from safety gloves and office supplies to spare parts for mission-critical industrial equipment and tooling. Many companies have focused cost-cutting efforts on direct materials and capital spending rather than MRO supplies, which have traditionally been viewed as low-cost items with little potential for savings. However, there is growing recognition that MRO represents a substantial expense for manufacturers about $125 billion annually, according to a 2008 study by Frank Lynn & a typical manufacturer MRO expenses represent up to 16 percent of the cost of goods but 62 percent of total requisitions.
PAGE 5 MRO OUTSOURCE MODELS (CONT.) About 39 percent of industrial distributors currently manage integrated supply contracts, according to a survey by Industrial distribution.
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