MRO PROCUREMENT: 3 KEYS TO MANAGING THE COMPLEXITY
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The document discusses the complexities of managing Maintenance, Repair, and Operations (MRO) procurement, emphasizing three key strategies: effective pricing and product data management, price validation, and enhancing the maintenance user experience. It identifies common challenges faced by procurement and maintenance stakeholders, such as issues with supplier catalogs and e-procurement systems, and suggests solutions to streamline processes using modern tools. The goal is to simplify supplier management, ensure accurate pricing for services, and provide a comprehensive solution for maintenance needs.
MRO PROCUREMENT: 3 KEYS TO MANAGING THE COMPLEXITY
- 1. MRO PROCUREMENT: 3 KEYS TO MANAGING THE COMPLEXITY January 24, 2018
- 2. MRO and Complexity Managed 1 Introductions MRO explained 3 Keys to managing complexity Q&A 2 3 4
- 3. Rowan Lemley (host) Introductions Kelly Babbit Head of MRO CoE OpusCapita
- 4. 10.11.2017 OpusCapita4 OpusCapita – what we do • Source-to-Pay • Cash Management • Business Network • Product Information Mgnt • Order-to-Cash A broad and differentiating portfolio
- 5. Sourcing & Supplier Engagement Operational Procurement Invoice Automation Supplier Information Manager RfQ Catalog Manager Network Portal Online Product Catalog Smart Forms Procurement Manager Budget Manager Service Procurement Inventory Manager Our Business Network connects your processes to your customers, your suppliers, your banks and more. E-Invoice Receiving Invoice Manager Matching Mobility Business Network 900 000 Suppliers 40 million Products 220 million annual invoices 100 billion in annual payments 11 000 banks connected via SWIFT certified payments PEPPOL and EU compliant Enabling end-to-end automationOpusCapita Source-to-Pay
- 6. Let’s talk about MRO ChallengesProcessStakeholders
- 7. MRO/EAM Stakeholders Maintenance Engineers ▪ Plan Work Orders ▪ Order Materials and Services ▪ Schedule Resources ▪ Monitors Work Order Execution Warehouse Managers ▪ Warehouse Managers ▪ Manage Stock & Replenishment ▪ Pick & Stage Secured Material ▪ Distribute Material Key purchasing commodities − Spare Parts − Services − Maintenance Consumables
- 8. eProcurement Stakeholders Procurement Managers ▪ Measured by reduction of procurement material and process costs ▪ Push to automate ▪ Requirement to minimize free-form requisitioning ▪ Focus shift to strategic procurement ▪ KPI to maximize automation and spend compliance Finance Managers ▪ Measured by reduction of accounts payable process costs ▪ Drive to automate as much of the finance process as possible ▪ Need to maximize the amount of spend on correctly priced purchase orders, to realize promised Sourcing savings
- 9. Procurement and Maintenance - the odd couple Procurement questions • Why am I still getting a high level of free form text requests from maintenance? • How can I minimize having to source the parts ordered by Maintenance? • Why can’t Maintenance find their parts in the Supplier Catalogs I have implemented? • Why am I getting such a low level of use of the Catalogs for ordering? • How can I get prices updated automatically in all of maintenance’s automated Requisitions? Maintenance Questions and Comments • Why are you asking me to source parts from suppliers? That procurement’s job! • Why are you asking me to use the eProcurement system? I cannot find what I need in that system. • I need to go to 3 systems to find a part. You have made my job harder. • You are asking me to use the new eProcurement system but: – Why can’t I find Supplier parts based on on my Internal Part Numbers? – Why can I not find Parts by Equipment BOM’s? – Why can I not search on OEM part numbers? – Why can’t I search based on part technical attributes?
- 10. Maintenance Requires a part or service to perform maintenance and repair work Warehouse Determines if part is stocked or needs to be ordered Procurement The price is validated, or sources the part and an order is placed Supplier Confirms order and delivers the part Maintenance Schedules and Performs the work An MRO process example Warehouse Receives material and stages it for maintenance
- 11. Maintenance, Repair & Operations MRO Supplier catalog management Pricing and price validation Integration of shop to ERP/EAM systems Source of supply and ordering from inventory Non-catalog and services procurement MDM and parts book integration
- 12. Efficient maintenance, repair and operations Typical challenges • Managing supplier catalogs and pricing • Connecting the shop to assets, inventory, BOM’s and suppliers • Non-catalog and services procurement • Inventory replenishment 15% Efficient MRO supply can reduce procurement related costs by 8- 15%.* Our approach • Modern tools to manage supplier catalogs and pricing • Real-time price validation against EAM/ERP • Direct connection between SHOP and existing ordering process • Extend SHOP by linking assets, BOMs and source of supply • Create smart forms for services and more complex purchases *Source: Deloitte – Smarter MRO
- 14. 3 Keys to Managing Complexity - Pricing and Product Data Management - Price Validation - Maintenance User Experience
- 15. Managing Supplier Catalogs, Parts Data and Pricing Business Goals • Simplify the management of supplier pricing • Enrich catalogs to support the maintenance function Approach • Implement OC CATALOG (SSM - Self Service Manager) Tools and Touchpoints • OC SHOP (OPC - Online Product Catalog) • Syndication of catalogs to ERP and EAM systems Notes • Supports Data Enrichment using business rules and Trusted Source • Buyer Part Numbers and other data merged with supplier catalogs • Treat warehouses as suppliers
- 16. Price Validation Services Business Goals • Support the planning process by ensuring that material and service requests are priced correctly upon execution of the work Approach • Implement OC SHOP(OPC Online Product Catalog) • Enable the Price Validation Functions in the EAM and ERP systems Tools and Touchpoints • Work Order Approval • Requisition Creation, Approval (PM, MRP runs, Work order releases etc) • Purchase Order Creation, Releases • Invoice Verification Notes • Integration required EAM/ERP specific standards (see Technology section) • Web Services based Requisition Import
- 17. Supporting the Maintenance User Experience Business Goals • Establish a one-stop-shop solution for all of maintenance needs Approach • Merge data from the EAM, Inventory, and supplier catalogs to a single view of maintenance ordering • Establish Catalog Interfaces with Ordering Systems Tools and Touchpoints • EAM Systems – Functional location, asset, and BOM information • Inventory Systems – Materials master, stock locations and stock levels • Supplier and Procurement Systems - Sources of supply and supplier catalogs Notes • Most Ordering systems support Catalog Interfaces
- 18. Challenge • Manage frame contracts centrally • Improve procurement automation Solution • Syndication of Global frame agreement pricing to business unit ERP/EAM systems • Established e-Mall shopping experience accessible by all business units • Integrated SAP EAM data into the shopping experience to provide a maintenance centric search Maersk Industry: Shipping, logistics, oil & gas 130+ countries 89,000 employees
- 19. Presentation name SELL MORE BUY EASIER PAY SMARTER Business network GROWTH OpusCapita 30+ years experience 3000+ Customers A pioneer of new technology A thought leader A partner