Case Study - "Factory MRO
Items" |
Company Description
|
$100
Million Specialty Paper Plant
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Company Situation
and Problem |
Unique product; declining sales; high
costs of production; high maintenance and repair parts prices; no storeroom
controls; poor processes; poor MRO procurement practices; improper staffing.
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| Paladin Actions & Recommendations |
Completed RFQ to outsource all MRO operations including procurement,
stocking, and disbursements; reviewed and compared detailed outsourcing
proposals and sample parts pricing; interviewed MRO suppliers; completed
contract negotiations
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| Client Results |
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Significantly improved storeroom processes, procedures and controls |
|
= |
Reduced MRO and related material costs by 12% |
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= |
Reduced Inventory by $1.0 million |
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= |
Reduced 1,000 Suppliers to 1 |
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= |
Reduced Suppliers' invoices from 5,000 monthly to 1 weekly |
|
|
Outsourced Poorly
Run Internal Process
with Significant Savings |
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