In procurement, the goal is clear: secure the right parts, at the right time, for the right price, while minimizing inventory costs and avoiding supply disruptions. But amid this balancing act, a hidden cognitive bias often distorts decision-making: survivorship bias. This error, focusing only on parts that are frequently used
Spare Parts Management Procurement: The Impact of Goal Misalignment
Subject area: Spare Parts Management Procurement Procurement plays a crucial role in spare parts inventory management, ensuring the availability of parts while minimizing costs and waste. By effectively sourcing, negotiating, and managing the supply of spare parts, procurement services contribute to streamlining inventory, enhancing decision-making, and reducing costs. However, achieving
The MRO Procurement Complexity Trap
Subject Area: MRO Procurement Complexity Do you wonder why MRO is such a hard category for procurement management? Do you find that your company constantly goes through cycles of adding and reducing MRO procurement resources? When companies manage indirect and MRO procurement in the same way that they manage direct
The True Cost of Managing Indirect Procurement
Do you know the true cost of managing indirect procurement vs. the cost of managing direct materials procurement? In this short video from the Something to Think About series, Phillip Slater explains the true cost of managing indirect procurement. For information on our Pro Level membership
Spare Parts Management Guides
This page provides links to exclusive spare parts management guides only available at SparePartsKnowHow.com.
Webinar: Procurement Outsourcing of Indirect Materials
Do you know the characteristics that differentiate direct and indirect procurement? Direct procurement is characterized by high volumes, regular purchases, and a small number of suppliers. Indirect procurement, and MRO in particular, is characterized by low volumes, irregular purchases, a large number of different items, and a large number of
Transparent Collaboration: The Future of MRO Procurement
An Interview on MRO Procurement with Mr. Detlef Daues, Founder of the V-LINE Group For the past few decades, the role of procurement has continuously evolved. Someone who has been at the forefront of these changes is Detlef Daues, Founder of the V-LINE Group. I met with Mr Daues at
Implementing Vendor Managed Inventory
The following question was asked by a supplier of MRO and spare parts (as you will see), however, I though that the response might be instructive for everyone that manages inventory so have included it here. Q: I work for an MRO distribution company and would like to inquire about
Procurement Savings: 33% by Removing One Artificial Constraint
Subject Area: Procurement Savings One of the main short comings that I see in the approach to indirect materials and spare parts management procurement is that many people don’t think past the key decision as to whether to stock or not to stock an item. After they reach the decision