A strategic partnership reduced the cost of MRO purchases
Procurement teams and engineers face many challenges regarding the maintenance, repair and operation (MRO) of their organisation’s assets and facilities. The supply chain for indirect materials is complex due to the number of stakeholders involved, a fragmented supply base and the quantity of products that are split across categories.
There is also constant pressure from senior management to reduce costs. One way to respond to these challenges is by streamlining processes – and here is an example of the benefits this can generate.
The challenge
Like many businesses, this large industrial manufacturer is continually looking for ways to improve procurement efficiencies while keeping an eye on costs.
Each year, for example, it recruits up to 30 apprentices, each of whom require a set list of 44 site-approved tools and equipment such as electronic cutters, hammers, hacksaws and chisels. Each of the 44 tools had to be purchased individually then stored and assembled as a kit by stores personnel before being distributed to the new starters. This was a time-consuming, costly and labour-intensive job, which sometimes led to an inconsistent mix of products across the workforce.
The solution
The organisation has worked closely with RS for decades, with the nearby RS Local Branch playing an instrumental role in delivering products and services tailored to meet its needs.
This partnership allowed the RS Local team to identify how value-added solutions such its kitting service could be used to streamline and simplify this cumbersome process. They worked with the manufacturer to identify and approve a kit that would be suitable for each of the apprentices. This included a large number of RS PRO products, which attracted savings in comparison to branded products.
Each of the apprentice kits is now collated and assembled by the RS Local branch team, freeing up the time previously spent by the manufacturer’s own personnel sourcing and purchasing tools from multiple suppliers before being put together in-house.
The kitting service helps this customer and others to achieve soft cost savings and streamline time-consuming processes. “It has made a real difference for us,” says one of the organisation’s apprentice instructors. “RS Local place all of the tools required by our apprentices in the same box and then deliver it to us on demand. We no longer need to purchase the parts separately or hold the kits on site, so the whole process keeps us compliant, and saves us time and money.”
The bespoke kitting solution is just one of a number of services this RS Local provides for this customer. The branch has also assigned a dedicated team member to deal with all of the customer’s operational requirements and provides a direct-to-desk delivery service.
This is particularly important because of size of the manufacturer’s operations. Using a dedicated driver, who has authorisation to enter the site, RS orders are delivered directly to the named individual at their location of work. The service is part of a continually evolving suite of value-added solutions that can be tailored to make a real and significant difference to customers, saving them both time and money.
The outcome
The kitting solution has helped this manufacturer to reduce costs, with savings of approximately £146 per kit as well as the added reassurance that the kit is compliant with required standards.
In the five years since the kitting solution was introduced, this equates to many thousands of pounds. In-house staff have also regained the time spent sourcing and compiling the kits, while the procurement process has been streamlined from multiple vendors to a single purchase order and invoice – all of which creates savings and efficiencies too.
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