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MRO procurement

ENGINEERING / MRO CASE STUDY  

MRO Tender 

THE COMPANY  

A leading UK manufacture of fresh produce supplying into the food manufacturing and food service sectors. 

THE SITUATION  

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. 

THE OBJECTIVE  

Appoint an established MRO partner and reduce like for like spend by 2%-5%. 

THE STRATEGY  

Redefine engineering needs, re-tender requirements and introduce consignment stock. 

THE APPROACH  

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. 

THE OUTPUT  

• 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 

CONTACT GATEWAY PROCUREMENT 01482 645 844 | enquiries@gatewayprocurement.co.uk   

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