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
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.
Contact us to discuss how our program works to save you real dollars in Indirect/MRO spend.