MRO items in general refer to the tools and products that are not directly linked to the production because they make no contribution in the production of goods. MRO items are for the maintenance.
The aerospace industry, utility firms and all varieties of industries need the support of MRO items in their stores. Any equipment, machinery if gets worse by chance, the repair signal turns red. Every firm sets aside the amount for repair. While the price range of these MRO items may vary in case of different suppliers, it is better to keep them than repent later. Once the functioning of any machine is disabled due to damage, you have to spend loads on it.
A good idea!
In such a case, you think of repairing it. But now it is too late to do that too. What you could have done earlier with less hassle has put the whole production on hold for long. This means if you see any defect developing, repair it immediately with the help of MRO items. Also, manage to have a check up of machines, computers etc. every month to avoid such a terrific situation. This may sound costly but isn’t actually.
In a research, an organization spends 1 Euro on the production and 2 Euros on the MRO procurement. The reason can be getting the cheapest product possible that results in wear and tear of the machine before the normal period.
The change begins with the decision taken by the procurement department. Everyone in the firm is involved and they join hands together for the success of the MRO procurement strategy.
Experienced persons are engaged in the crucial take on. Their advice is accepted and followed up by the other workers. MRO items are put to use and the administration ensures the correct placement of these items.
The list of these MRO items include chemicals, cleaning products, industrial supplies, abrasives, janitorial supplies, safety equipment and packing tools. All the essentials are included to run the production. The fact is that these MRO items are indirectly linked to the production. Because they work more for maintenance of the machinery that make production happen.
The annual survey done by the Helicopter Association International has come up with that around 45% of expenditure is done on maintenance.
MRO items are looked as a kind of ‘inventory ‘ responsibility. We can also says that production is somewhat reliable on MRO items.
There is a difference between MRO and Real Inventory Management. What problems MRO goes through?
MRO inventory lacks many controls and practices. Analysis costing is checked in case of inventory whereas MRO procurement gets the freedom to perform it.
All the MRO items cannot be easily located. They cannot be bought from a single supplier. There is a wide range of tools required for the MRO procurement, but even having them in stock is not sufficient. Spot buys are done that ignore price for the sake of availability.
MRO items are many but it seems a tougher task for the firm to get them all. Sometimes, the suppliers charge high prices if they are to deliver all the MRO items which they have in store but taking these items out for delivery to complete MRO procurement seems a tough nut to crack for some firm related authorities.