Software vs. Full IMM Program

I recently had a conversation with a potential client who told me they purchased a software system to provide the solution to their Indirect spend management. I felt compelled to explain the following:

There are Four Primary Tenet’s of IndirectMRO Material Management

Procurement and Purchasing
Inventory Management
Crib/Storeroom/Warehouse management
Accountability and Reporting

Each has a specific set of tools used to successfully implement a management system

Systems and Software
Processes and Procedures
Personnel and Core Competence

Allowing you to…

Capture and contain all the data currently in the systems being used
Analyze and Understand how the process got to this point

Then, using the analysis, restructure the category strategy to

Apply intelligence and integrity to a need based, data driven acquisition and distribution system within the facility(s)

This will eliminate:

Rogue/wasted spend | Excess and Obsolete Material | Shrinkage

And provide:

Lower acquisition costs | Consolidated vendor base | Inventory reductions

While capturing data on every part issued and every penny spent, and analyzing it by swipe card/department/product line or any category imaginable

By applying additional strategic support plans like;

Warranty management
Repair management
Rework and Reuse management
Garment/Glove Rewash
POU tools
Many, many more tools

You can expect to see the total cost savings we’ve achieved year over year for almost twenty years running, which averages 12.5% annually.
This savings typically covers the monthly management fee for our program and beyond providing ROI to the category spend. Because we do not add markup to product (all costs are pass thru from supplier to client), our monthly fees are static for the duration of the contract.

The idea of buying a software program to do the same or similar is a bad strategy and a poor investment, and will leave you wondering what happened to your expectations.