MRO procurement is one of the most complex categories for industrial organizations. Fragmented suppliers, millions of SKUs and unstructured spend create both costs and risks.
The challenge
MRO represents 5-10% of total operating expense but receives little management attention. Result: irregular expenses, duplicates and inventory imbalances.
Three digital solutions
1. Text Analytics for spend visibility
AI classifies and normalizes spending data. Organizations find that 15-25% of catalog items are duplicates.
2. Digital simulation for inventory
Simulation models reduce inventory by up to 40% while maintaining service levels.
3. OCR + AI for the digitization of contracts
Digitize supplier contracts, ensure compliance, identify savings opportunities.
Proven results
- Saves of 15-20% on total MRO spend
- Inventory reduction up to 30%
- 10% decrease in maintenance costs
- ROI from 3 to 7x within 6-12 months
Sources: McKinsey, IBM, RS Integrated Supply, Verusen.
