What is MRO?

MRO is: Maintenance, Repair, and Operation (MRO). Refers to the actual production process is not directly into the production of products, only for maintenance, repair, operation equipment, auxiliary raw materials production of accessories.

Current MRO industrial procurement problems

1, In view of "market information asymmetry" factor, the buyer and the seller cannot immediately get in touch with each other. Although the industrial Internet has solved the matching problem of some buyers and sellers, the MRO industry is still facing many difficulties in finding and matching with the buyers and sellers in the MRO market. This depends entirely on the nature of its customers - in a broad sense, MRO customers are the industrial customers, from a narrow sense, MRO customers are the staffs around production line. Under normal circumstances, MRO procurement decisions are made by the enterprise’s manager, procured by the procurement department, and ultimately used by the production line workers receive. During the adoption of the main steps are divided into: enterprise procurement plan, procurement, receipt and storage, workers receive, sort out the library information and other steps. For a large enterprise, MRO accounted for a small amount of procurement, corporate procurement plans may not fully take into account the importance of MRO procurement and complexity. In the lower cost requirements and ensure quality requirements, manager tends to issue rigid targets to procurement department.  For the procurement department, the complexity of MRO procurement and the degree of professionalism determines the procurement takes a lot of time for parity, transaction. For large-scale enterprises, MRO procurement can even evolve thousands of manufacturers, a number of product categories. Then the detailed work will inevitably lead to unnecessary costs, and make the purchase do not match the requirements of users. If the production line workers, team leaders, as direct users with MRO products, have some special requirements and awareness, although they can communicate with the procurement department to change, they need to go through the procurement department audit, then reported to the enterprise manager, after business manager makes a plan, based on the plan to implement inventory. After all those steps, enterprise can fulfill the workers or team leaders’ requirements. Considering the communication costs and wait time, to a certain extent, may slow down the production efficiency of enterprises, and sometimes even affect the safety of production.

2, large economic downturn, the national manufacturing industry is facing excess capacity, lack of business innovation and a series of challenges!

In the global economic depression, large-scale manufacturers because of their large volume, data management difficulties, cost accounting difficulties and other reasons, faced with more severe problems than the small and medium enterprises. In the global economic downturn stage, the change management is a bitter medicine, the pain of change management is inevitable, but the change management can be obtained in the recession phase of the industry advantage, after a complete transformation, even in the case of the environment is still sluggish, company will continue to develop. According to the 2008-2009 global economic crisis analysis, the US traditional strong companies such as Ford, Chevrolet and other car manufacturers, because of national labor policies and unions and other reasons, the transition is slow and difficult, although the United States willing to save those car manufacturers, but under the impact of Japan's automobile manufacturing industry and other advanced zero inventory, low cost, excellent management,  eventually leading to the US heavy industry city Detroit's defeat. The current large-scale enterprises should also feel threats from all aspects of low-cost, small businesses or even foreign competition. Companies should change themselves with China's open economic policy. The transition is of great urgency.

MRO Industrial Services:

The ultimate goal of MRO supply chain management is to deliver the right items to the right location at the right price at the right time. Then in order to achieve this goal, MRO supply chain management cannot only operate as procurement. In order to achieve MRO supply chain management objectives, we need to control the upstream manufacturers, and establish friendly relations. Downstream dealers have to maintain communication of information. When companies make a decision, they need to ensure that the entire MRO supply chain services for the enterprise, rather than manufacturers are only concerned about their own interests, downstream dealers only concerned about the immediate market. Then in order to achieve the agile of the entire MRO supply chain, generally there will be two ways, first set up the project team, to serve the internal reform and external communication, the second is to MRO outsourcing. The project team required professional, deep understanding of internal problems, and having a good communication with the upstream and downstream enterprises, generally enterprises need to deploy various business talents into this team. Although the establishment of the project team can do to solve their own transformation and management issues, but will be accompanied by the conflict from company inside and the lower efficiency because original enterprise departments lose their brain drain. The upstream and downstream enterprises have to adapt to the slow and other shortcomings. Because the exchange of issues, transition range and time of MRO outsourcing service compared to the establishment of the project team will be a long time, however, outsourcing will help companies shift the risk of the original departmental conflicts, as well as the transformation of various departments and reduce costs.

Because MRO outsourcing service providers do not have the internal management knowledge and system knowledge, according to the experience of foreign countries should generally require outsourcing service providers have the following characteristics:

1, good operational experience to ensure the stability of the transition;
2, a strong data management, enterprise audit third-party data to ensure that the enterprise control of the supply chain;
3, professional, to ensure the quality of procurement and the integration of the original or new partners from top to bottom;
4, smooth communication to ensure fulfill the requirements of production line workers or team leaders.

Through the above characteristics, companies can serve the enterprise transformation and reduce the cost of demand. With advanced experience of foreign technology, Cribsolution has accumulated years of experience in cooperation with the world, independently developed a data management system, with years of experience in the procurement team and set up a resident manager to solve the immediate needs of the production line workers, and has In-house processes to regulate the various departments within the enterprise experience. We can personally help you solve the problem of transition.