Foreign popular MRO (industrial products distribution organization) is rising quietly

MRO, the abbreviation of maintenance and repair operations, refers to the non productive materials needed by a factory or enterprise to maintain and repair its production and working facilities and equipment to ensure its operation. These materials may be spare parts for equipment maintenance and repair, or related equipment and consumables to ensure the normal operation of the enterprise.

On the whole, there is a big gap between China and developed countries in MRO procurement and management, but MRO procurement is increasingly valued by enterprises. MRO procurement not only plays an important role in maintaining the normal operation of enterprises, but also has an important impact on cost control and profit. Recently, a survey report on MRO procurement in the United States shows that the average ratio of MRO procurement to the total procurement cost of enterprises is 26%, even as high as 63%. Take an enterprise whose purchasing cost accounts for 60% of the total cost and the profit margin is about 5% as an example. If the purchasing cost is reduced by 8%, the profit margin can be increased to 11%.

As the world's fourth largest economy, China is the world's manufacturing center http://www.vibmro.com It is estimated that the total annual procurement of MRO is close to 300 billion yuan. The Chinese market is enough for MRO suppliers to admire. Now MRO distribution is springing up.

1、 MRO procurement and management in China

There are many problems in purchasing and management of MRO in China. Of course, we can find the market reasons for the purchase and management of China's MRO. For example, the supply market of MRO is relatively scattered and far from scale. MRO suppliers are small in scale, few in variety, nonstandard in management, lack of funds, few in network and channels, and can not provide much value-added services, etc. Even so, we can not deny the problems existing in the procurement and management of MRO

(1) Enterprises focus on the purchasing of direct production materials, but MRO purchasing has not been paid enough attention and managed effectively;

(2) The purchasing behavior of enterprise MRO is often scattered in different functional departments, the realization degree of centralized management is poor, and the communication between departments is not smooth, which leads to the increase of workload and the potential risk of purchasing error;

(3) There are some problems in the management setup and staffing of the purchasing department. The purchasing personnel lack sufficient professional knowledge, often need the assistance of relevant departments to determine the material specifications and models, and lack of scientific understanding of the purchasing cost and risk;

(4) Most manufacturing enterprises have many kinds of spare parts, small batch, low consumption and irregular. Most of the 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) Due to the lack of planning for equipment maintenance and repair, and the lack of attention to historical data mining and demand forecasting, the enterprise leads to uncertain lead time and unreasonable inventory;

(6) Lack of strategic management of suppliers. According to the survey estimates, spare parts procurement costs about 80% of the energy of the purchasing department of manufacturing enterprises, but the purchase amount only accounts for about 10% of the enterprise's purchase amount. Moreover, the energy of the purchasing staff is mainly spent on the specific operation of the purchasing business, not to mention the strategic management of suppliers. Some enterprises even don't know how many suppliers they have.

The best way to manage MRO procurement is to have as many suppliers as possible to reduce the price. This traditional way of thinking is no longer suitable for modern supply chain management mode. Only when more businesses or functions (not only MRO procurement) rely on specialized companies, can we focus on and improve our core competence. Therefore, we will see that MRO channel integration suppliers come to us quietly, and gradually attract people's attention.