ENGINEERING / MRO CASE STUDY
A leading UK manufacture of fresh produce supplying into the food manufacturing and food service sectors.
The company does not have a contract in place with its current MRO supplier and have not tendered their requirements for over 5 years. The company also holds a large number of spares which ties down cash unnecessarily.
Appoint an established MRO partner and reduce like for like spend by 2%-5%.
Redefine engineering needs, re-tender requirements and introduce consignment stock.
A two-stage approach was deployed:
Stage 1: Three leading MRO providers that have the capability to manage stores & spares were invited to conduct a review of current operations and propose improvement ideas.
Stage 2: The output from the review stage formed the basis of the new specification that was used for the tender document.
• A 2 + 1 contract awarded to a leading MRO provider
• 5% cost savings
• A rebate mechanism implemented
• Clear SLA’s and KPI’s
• Service credits implemented