MRO procurement is one of the most demanding categories for industrial companies. Fragmented suppliers, millions of SKUs and unstructured spend create both cost risks and operational risks.
The challenge
MRO accounts for 5-10% of total operating expenses but receives little management attention. Result: uncontrolled spending, duplicates and inventory imbalances.
Three digital solutions
1. Text analysis for spending transparency
AI classifies and normalizes spending data. Companies discover that 15-25% of catalog items are duplicates.
2. Digital simulation for inventory management
Simulation models reduce inventory by up to 40% while maintaining service quality.
3. OCR + AI for contract digitization
Digitizes supplier contracts, ensures compliance and identifies savings potential.
Proven results
- 15-20% cost savings on overall MRO spend
- Up to 30% inventory reduction
- 10% reduction in storage costs
- 3-7x ROI within 6-12 months
Sources: McKinsey, IBM, RS Integrated Supply, Verusen.
