Integrated Supply Solutions for MRO Optimization and Supply Chain Efficiency

The Client

• Industry: Life Sciences manufacturing
• Footprint: Global with operations spanning across North America, Europe, and Asia
• Manufacturing Sites: more than 170 worldwide, in over 35 countries
• Employees: 9,000+ globally
• Revenue: Approximately $40 + billion

A global manufacturer operating in a complex and regulated environment faced persistent challenges in managing its maintenance, repair, and operations (MRO) supply chain. With thousands of SKUs, fragmented procurement processes, and limited inventory visibility, the organization struggled to maintain operational efficiency and control costs. To address these issues, the company partnered with an integrated supply provider to implement a comprehensive solution focused on MRO optimization, procurement automation, and continuous improvement.

The goal was to create a scalable, data-driven supply chain model that supports production and maintenance operations while reducing waste, improving uptime, and delivering measurable cost savings. The starting point was the company’s largest manufacturing facility.

The Challenge: Inefficiencies in MRO Procurement and Inventory Management

The manufacturer’s storeroom and procurement operations were disjointed and lacked the data integrity and process control needed to support production and maintenance. These inefficiencies led to excess spend, frequent stockouts, and poor visibility across the supply chain.

Amazingly, all these issues existed despite having a previous integrator in place. That integrator failed in its mission to right the ship. Instead, when RS Integrated Supply took control of the MRO program we inherited more than just a poorly managed supply chain process. There was lack of trust on top of the poor financial decisions, untracked inventory, and lack of accountability.

Key Challenges in MRO Supply Chain:

• Incomplete Inventory Data:
  • Only 28% of items had manufacturer names
  • 53% had part numbers
  • 0% were linked to categories
• Procurement Bottlenecks:
  • Manual RFQ processes with slow turnaround
  • Over 4,000 lines of MRP backlog
  • High volume of open purchase orders
• Inventory and Storeroom Issues:
  • Average of 56 stockouts per month
  • Untracked capitalized parts stored without SAP linkage
  • Lack of prioritization in purchasing decisions
• Financial Impact:
  • Excess spend due to duplicate orders and false demand
  • Inefficient sourcing and lack of supplier consolidation

These challenges not only impacted day-to-day operations but also created long-term risks to production continuity and financial performance.

The Solution: Integrated Supply Strategy for MRO Optimization

RS Integrated Supply deployed a full-service solution encompassing storeroom management, automated procurement, and continuous improvement initiatives.

RS SYNC™, a proprietary technology platform designed specifically for MRO supply management, and a data-driven process were central to the transformation.

MRO Inventory Optimization and Data Standardization

• Conducted a wall-to-wall cycle count of over 22,000 SKUs
• Standardized item data and linked all items to categories
• Implemented a new cycle counting process with automated templates
• Corrected reporting discrepancies in collaboration with site finance

This foundational work, completed in part with the deployment of RS’s SnapPart™ data collection and identification tool, enabled better sourcing decisions, improved inventory visibility, and reduced the risk of stockouts and overstocking.

Procurement Automation and Strategic Sourcing

• Deployed RS SYNC™ for automated sourcing and RFQ management
• Reduced average quotation time to 2.57 days
• Enabled 3-bid comparisons and supplier portal integration
• Improved quoting process time by over 4 minutes per RFQ

The automation of procurement workflows helped streamline operations, reduce manual errors, and accelerate decision-making.

Vendor Consolidation and Supply Chain Governance

• Consolidated suppliers from over 600 to 244 active vendors
• Sent RFQs to 358 vendors with 1.99 quotes received per line
• Achieved 90.98% on-time delivery
• Established weekly procurement update meetings and open order reporting

This strategic sourcing approach improved supplier performance and reduced supply chain risk.

Continuous Improvement in MRO Operations

• Developed a new MRP prioritization tool to eliminate backlog and saving $1.7 million in false demand
• Commercialized OEM parts to reduce costs and improve availability
• Recovered capitalized parts and integrated them into inventory, currently over $908,000 in value
• Consolidated over 1,400 duplicate SKUs
• Implemented 6S projects and expanded storeroom coverage hours

These initiatives supported long-term operational excellence and positioned the site for scalable growth.

Result:Measurable Gains in MRO Efficiency and Cost Reduction

The integrated supply program delivered significant financial and operational improvements. Inventory accuracy increased, procurement efficiency improved, and total cost savings exceeded $2 million in the first year.

MRO Cost Savings and Spend Reduction

• $2.16 million in total cost savings, including:
  • $326,526 in direct material savings
  • $935,126 in cost avoidance from canceled false demand

An additional $100,000+ in savings, excluded from the amount above, was earned from the RS Integrated Supply repair vs. replace process with more expected.

These savings were achieved through smarter sourcing, demand management, and process optimization, including automating purchasing.

Inventory Accuracy and Fill Rate Improvement

• Inventory value managed: $32.9 million
• Fill rate improved to 97.31%
• Stockouts dropped by nearly 93%, from 56 to 4 per month
• 1,673 new SKUs created through standardized forms

Improved inventory accuracy and availability helped reduce downtime and support maintenance operations.

Procurement Performance and RFQ Efficiency

• 12,149 closed PO lines processed
• $16.4 million in total spend
• 12.11% net savings across all purchase orders
• RFQ turnaround reduced by 4.42 minutes per transaction

These metrics reflect a more agile and cost-effective procurement process.

Operational Excellence and Storeroom Optimization

• Achieved Gold status in internal operational audits
• Established bin locations for over 2,000 previously untracked parts
• Reduced invoice exceptions and improved reporting accuracy
• Supported Maintenance Excellence initiatives with data and reporting

The storeroom became a strategic asset, supporting both production and financial goals.

Conclusion: Integrated Supply as a Catalyst for MRO Supply Chain Transformation

This case study illustrates how a strategic integrated supply partnership can transform MRO procurement and inventory management. By leveraging technology, data standardization, and continuous improvement, the manufacturer achieved measurable gains in efficiency, cost control, and operational reliability.