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A new study commissioned by SDI Inc. found that only 45 percent of companies believe they are efficient in managing maintenance, repair and operating (MRO) assets.
Independent market research organization IMTS conducted more than 100 surveys by live interviews with manufacturing executives from companies that spend more than $5 million in annual MRO. The inefficiencies, costs and barriers to improvement associated with MRO supply chain were made evident in the conclusions of IMTS' study and point to a great opportunity.
"Competition in the manufacturing industry is fierce, and opportunities are fleeting," said Andy Cvitanov, SDI chief executive officer. "Best-in-class companies spend little to no time searching for, acquiring and managing critical parts for production. Those respondents who aggressively and professionally manage MRO assets have a distinct market advantage in supporting and achieving their goals."
Of the companies surveyed, 59 percent agreed that it is important or very important to optimize supply chain management. However, 40 percent of the participants claimed that management of the MRO supply chain is not a core competency, and 55 percent stated that they are less than efficient in managing their MRO supply chain.
The cost of the MRO supply chain is fairly high, with more than 40 percent of participants spending greater than 10 percent of their maintenance budget and downtime on locating and acquiring MRO parts. Respondents further identified the complexity of process as the biggest challenge to better practices in managing the MRO supply chain.
For more information on the findings from the national survey, visit www.SDI.com.