Like many other categories MRO is currently experiencing a number of headwinds post-Covid lockdown and is experiencing pent-up demand due to:
- Delays of preventative and / or planned maintenance activities from deferred consumption
- Additional consumption of PPE and other consumables
1. Category Analysis
External Factors
Mitigation Elements
High
Range %
Range Risk
- Wages
- Manufacturing Expenses
- Living Wages
- Transportation Expense
- Technology / Innovation
- Inventory Reduction
- "Thinning" SKUs / Updated
- Technology Program
- Technology / Innovation
- Inventory Reduction
- "Thinning" SKUs / Updated Technology Program
- Shipping congestion / product availability
- Construction / building materials
- Brand / product-specific
Mitigation Elements
Range %
Range Risk
External Factors
2. Supply Chain Impact
3. Key MRO Mitigation Planning
4-12%
Medium
6-12%
- Increasing minimum order quantities
- Re-ordering trigger level review (increase)
- Maintaining a high level of safety stocks for critical components
- Reuse / refurbish items where possible
- Flexibility on brands or specific products as alternatives
- Keep-Stock programs or vending where appropriate to reduce consumption by as much as 30%
- Implement innovative smart technology to monitor and reduce consumption of consumables
MRO-008 Ver 1.1 (April 23)
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