What You Should Know About MRO, Maintenance Repair and Operations

Maintenance, Repair, and Operations also known as MRO refers to equipment employed in the manufacturing process in any firm. Note however that MRO has nothing to do with the ingredients needed for producing a product. Rather, it includes operational tools like spare parts, supplies and equipment such as batteries; valves; repair tools - necessary for the functioning of a product; cleaning  - consumables like bleach and fixing supplies like a hammer or technology - like desktop computers, laptops, scanner, printers.

Defining MRO

There is no absolute definition for what MRO means because it varies from firm to firm. However, what is necessary is a full of understanding of what a firm’s MRO requirement entails and putting in place necessary measures for procurement, control and management.

MRO could be difficult to manage and its procurement is hardly overseen using a firm’s ERP systems (Enterprise Resource Planning). The task is usually managed by the reception staff or any other administrative personnel who has to make order for MRO supplies as often as needed. When there is a defection on the part of the staff in charge, it is impossible to gather useful information on the constantly used MRO supplies by a company, target time for resupply of MRO supplies as well as the rate of wear and tear. Therefore, it is necessary for a firm to set up a good communication system between itself and the hand in-charge of MRO supplies. Many business firms make the mistake of neglecting MRO not knowing that it could be that little thing that can make a difference in their circle of operation.

Meanwhile, questions have been asked whether the need for maintenance, repair, and operations cut across all companies. Well, as long it is a business or manufacturing firm and equipment are used, there is a need for MRO.

Also, one may pause to wonder whether MRO comes with cost implication. The answer is an absolute YES. Once there is an effective measure put in place to monitor and manage MRO, there will be need to constantly upgrade machineries used for production. In the process, manufacturing firms could be left with excess MRO and other spare parts that are no longer needed for its operations. Since money must have been invested to get them, there is need to find an effective means of recovering some of the value.

How can the firm retrieve a fair value from MRO?

When there are no necessary measures to control and recover a fair return on investment on excess MRO, spare parts and equipment, a manufacturing firm usually ends up incurring more inventory carrying cost. Hence, it is necessary to deal with any factor that may contribute, unnecessarily, to inventory carrying cost. Finding a good market for the sale of excess MRO is a good idea. Fortunately, it is not hard to find second market buyers as well as platforms that make this possible. There are many asset recovery options available. The method of asset recovery used in asset recovery is as important as the excess MRO. The best recovery option for manufacturing industries is industrial auction. The advantages of adopting this method are hereby considered below.

Advantages of industrial auction for MRO

Control

Industrial auction is the best place to auction any industrial equipment because of the control it affords the seller. When this is done via an online medium, it enables the seller to assess buyers past bidding profiles, control the price range and other agreement on term and conditions of payment, removal, dismantling, and others.

Convenience

Industrial auction is the most convenient way to sell several MRO, spare parts and equipment. When it is an online industrial auction, it is easier to attract many people when compared to any other. This means anyone can put up a spare part for bidding from anywhere while a buyer can as well place a bid from any distance at any given time.

Cost effectiveness

For sales of MRO, spare parts and equipment, industrial auction is highly cost effective especially when carried out online. Online industrial auction can be set up quickly without having to give out any significant sum for planning and labour. This is possible because auction will only be processed when a seller wants to sell a large amount of MRO supplies. As a result, money is saved.

Bidsuite - The industrial auctions tool suite

The business of auctioning surplus MRO supplies is critical to the operation success of an industrial firm. Thus, effective decision has to be made instead of roaming every second market. At Bidsuite, we recommend an industrial auctions tool suite for the Bidderlists, Exapro and Kitmondo networks inter alia guaranteeing up-to-date industry insight; a good number of dedicated sellers/buyers; professional auctioneers across industries; history of successful campaigns; verifiable experience and effective communication system.

Over the years, 3 industrial auction experts: Bidderlists, Exapro and Kitmondo, have provided excellent services for MRO auctioning. One of our clients, EquipNet, is a global leader in respect to MRO asset management. The beneficial values which industrial firms have been able to enjoy so far include global audience via auction channels like Live/Website auction, Smart auctions, and Sealed bid sale. Also, the level of customer service which buyers and sellers enjoy is unparalleled. With a channel like Cascading model for example, excess MRO sellers are able to enjoy good financial return on investments. No one gets hurt, it is that simple. Unnecessary cost is avoided and critical sales deadline is met.

We have many more clients. Tired of carrying unnecessary cost on excess MRO supplies and equipment, you can bank on us to connect you to a vast world of industrial auctions. Our digital platform makes it possible for potential buyers/sellers seeking market for their used asset to connect with auctioneers that can help you get a fair value from excess supplies.

Make the right decision today and enjoy a good value return on MRO assets.