How MRO procurement can be A Hidden Excess Inventory
                         HOW MRO 
PROCUREMENT CAN BE A 
HIDDEN EXCESS 
INVENTORY
What is MRO?
MRO Purchasing or Maintenance, Repair, and 
Operation is important for a successful business. 
Every Industries production and delivery of 
products depends on how we maintain the 
machinery/equipment.
MRO Role in Every industry
Machinery/Equipment in every industry had to take care of properly 
permanently production and profitability of the organizations. In today’s 
competitive world every day comes up with different challenges that 
are difficult for every business to sustain within the market.
One of the foremost critical challenges among this is often the 
procurement of MRO spares for the Industry or Machinery. MRO items 
are the foremost required things in every industry to take care of good 
productivity. This direct and indirect procurement of MRO spare parts 
for the industry could lead on to an outsized amount of spend if data 
are maintained improperly. Some of the Industries fail to take care of 
their MRO procurement and spend on the precise procurement which 
results in excess inventory and loss of high value from the 
organizations.
How Excess inventory?
The business are going to be running consistent with the 
requirements of the customer or user . to satisfy the 
business goal MRO procurement helps to satisfy the 
stress .If the demand forecasting exceeds needs results 
in Excess Inventory. 
Poor maintenance of knowledge within the warehouse 
results in Excess Inventory and it'll end in High MRO 
spend. It affects the entire cost management of the 
industry. These hidden costs of MRO procurement will 
eat the income for each industry. These are often 
resolved by making strategy for the MRO Procurement.
Strategies of MRO Procurement
To control the procurement to avoid any loss without preventing any 
shortage and reduce the value of the merchandise it's necessary to 
implement a typical procedure consistent with their own needs and 
within the evolutionary remarkable SOP are followed by many 
industries and it flows as a technique .
Standard procedure for industry 
Below is that the standard procedure which will follow to take care of 
the procurement of MRO spares and reduce spend on MRO 
procurement.
It reduces excess procurement of MRO items for the industry
 Supplier Optimization
 TQM
 Risk Management
 Global Sourcing
  Vendor Development
 Green Purchasing
Source:- https://blog.goospares.com/how-mro-procurement-can-
be-a-hidden-excess-inventory/