Maintenance, repair, and overhaul (MRO) spending
It may be tempting to tell department heads to cut supply purchase costs by 5% to 10% across the board and assume they’ll distinguish a solution, but this approach will likely fail to work for long. Likewise, less expensive supplies may lead to increased costs, quality problems, or future issues.
As a solution, a business-needs analysis is a process that produces significant, sustained cost savings as well as improvements in productivity, quality, and safety.
To implement a plan that best fits your business,
1. Secure executive buy-in
Sustainable cost savings and other improvements often require more than renegotiating supply contracts. These improvements will take time and effort, partially because they often involve finance, purchasing, maintenance, operations, and others. Start by securing buy-in from the senior executives responsible for the facility. Their commitment to the process at the beginning will make everything else easier.
2. Set clear goals
As you involve senior executives, ask them to establish what they see as the most important goals for the analysis. Cost savings are always a goal for companies; however, as you gather input from leaders, you will find other pain points to address, such as inefficiencies in routine processes or excess inventory. Setting goals also
3. Involve all functions
As you collect the information for your analysis, involve every department head. This doesn’t have to be
4. Map out processes
Go beyond knowing the
5. Do it all at once
While it may be tempting to view this process as a side project, you’ll have a much clearer understanding of problems and potential solutions if you do the project in a compressed period – throughout a few days. When MSC performs these analyses for clients, we frequently do most of the work in a single day, on-site at a facility. Doing it this quickly helps keep it at the top of everyone’s agenda, including those who you need to provide information and the individuals who must approve the final changes to purchasing, inventory, and other processes.
A business-needs analysis can seem intimidating and
MSC Industrial Supply Co.