MRO procurement is one of the most challenging categories for industrial organizations. Fragmented suppliers, millions of SKUs and unstructured spend create both costs and risks.
The challenge
MRO represents 5 to 10% of total operational expenses but receives little managerial attention. Result: unauthorized expenses, duplicates and inventory imbalances.
Three digital solutions
1. Text Analytics for Spend Visibility
AI classifies and normalizes spending data. Organizations discover that 15-25% of catalog items are duplicates.
2. Digital simulation for inventory
Simulation models reduce inventory stocks by up to 40% while maintaining service levels.
3. OCR + AI for contract digitization
Digitizes supplier contracts, ensures compliance and identifies savings opportunities.
Proven results
- Savings of 15-20% on total MRO spend
- Inventory reduction of up to 30%
- Decrease in holding costs by 10%
- ROI of 3 to 7x in 6 to 12 months
Sources: McKinsey, IBM, RS Integrated Supply, Verusen.
