How centralized MRO can deliver greater value beyond savings

Presented by:

Presented by:

Balancing the scales with centralized MRO procurementSUPPLIER SPOTLIGHT SEMINARISM-CAROLINAS VIRGINIAANNUAL CONFERENCE & SUPPLIER EXPO

Kurt Meiers

Director, Strategic Sourcing

SDI, Inc. June 25, 2015

ISM-CV

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Decentralized Model

Center-Led Model

Centralized Model

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Centralization enables mature portfolio management

Volume purchasing means better prices and more agreeable termsVolume deliveries cut down on delivery charges and staffing costsComputerized systems can automate much of the work and integrate purchasing systems with accounting and inventory controlStaff know how to minimize costs

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Can you do this with MRO in your company?

Balancing the scales with centralized MRO procurement

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Centralized procurement provides better value and performance.

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Centralized procurement helps deliver greater value beyond cost savings.

Average spend under management for various operating models (indirect spend)

Category management and strategic sourcing maturity for various operating models (indirect spend)

Source: © 2012 KPMG International Cooperative (“KPMG International”).

Copyright 2015 SDI, Inc. All rights reserved.

Enterprise MRO: Centralized, holistic MRO Process Efficiency = Value

Allows procurement to extend reach and align best practicesEfficiency in supply leads to improved profit and time to marketSRM can be deployed to a broader supplier networkDrives diversity spend & improves HSEImproves risk managementEvolves procurement beyond price to value creation

Copyright 2015 SDI, Inc. All rights reserved.

How do you get to the optimal operating model?

Centralization manages the balancing pointMRO business process outsourcing is a tool to squeeze greater value from your procurement activitiesProvide a robust centralized framework for improved efficiencies and increased leverage