The brand new business opportunity of the new MRO model

The popular MRO (industrial distribution organization) is rising quietly in foreign countries

MRO, Maintenance, RepairOperations English is the three word abbreviation refers to the factory or enterprise on the production and work facilities, equipment maintenance, maintenance, to ensure the operation of non production materials, these materials may be of spare parts for equipment maintenance and repair, may also be related to ensure the normal operation of the equipment enterprises, supplies and other materials.

In general, the MRO procurement and management in China has a large gap compared with the developed countries; but the MRO purchase has been paid more and more attention by the enterprises. MRO procurement not only plays an important role in maintaining the normal operation of the enterprise, but also can not be ignored in the cost control and profit. A recent US survey of MRO purchases showed that MRO purchases accounted for an average of 26%, or even up to 63%, in the overall cost of the company. For an example of an enterprise with a total cost of 60% and a profit margin of about 5%, the profit rate can be raised to 11% if the purchase cost is reduced by 8%.

Chinese as the world's fourth largest economy, the world's manufacturing center, according to the China industrial pipe network http://www.vibmro.com MRO to estimate the total annual purchase of nearly 300 billion yuan, China market enough to make MRO vendors for vertical, now MRO distribution as bamboo shoots emerged.

1. Current MRO procurement and management in China

There are many problems in the procurement and management of MRO in China. Of course, China's MRO procurement and management can first find the market reasons, for example, the MRO supply market is relatively scattered, far from the formation of scale. MRO suppliers are small in size, small in variety, poor in management, lack of funds, few networks and channels, and can not provide much value-added services, etc. Even so, we can not deny the problems that exist in the procurement and management of MRO.

(1) the main attention is focused on the procurement of direct production materials, and MRO procurement has not been fully and effectively taken seriously and managed.

(2) enterprise MRO procurement behavior is often dispersed in different functional departments, centralized management is relatively poor, and communication between departments is not smooth, resulting in increased workload and potential risk of procurement errors.

(3) there are problems in the management settings and staffing of purchasing department. Buyers lack sufficient professional knowledge, and often need the help of relevant departments to determine the material specifications and models, and lack of scientific understanding of procurement costs and risks.

(4) most manufacturing enterprises have many kinds of spare parts, small batch quantities, low consumption and no rules. Most spare parts can only be purchased from many retailers in the market, resulting in the quality of spare parts can not be guaranteed, which seriously affects the normal production of enterprises.

(5) because enterprises are not very strong in planning and maintenance of equipment, they do not pay much attention to the excavation and prediction of historical data, which lead to uncertain lead time and unreasonable inventory.

(6) lack of strategic management of suppliers. According to the survey, spare parts purchase cost about 80% of the purchasing department of the manufacturing enterprise, but the amount of purchase is only about 10% of the amount of the company's purchase amount. Moreover, the energy of the buyers is mainly on the specific operation of the procurement business, which is far from the strategic management of suppliers, and even some enterprises even have many suppliers.

The best way to manage MRO procurement is to have as many suppliers as possible to make it easier to press prices. This traditional way of thinking is no longer applicable to modern mode based on supply chain management. Only more business or functions (not only MRO procurement) can help us to concentrate and improve our core capabilities better by using the specialized companies. As a result, we will see that MRO channel integration vendors are quietly coming to us and gradually paying attention to them.