Success Story - "Factory MRO Items"
$100 Million Specialty Paper Plant
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.
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
Significantly improved storeroom processes, procedures and controls
- Reduced MRO and related material costs by 12%
- Reduced Inventory by $1.0 million
- Reduced 1,000 Suppliers to 1
- Reduced Suppliers' invoices from 5,000 monthly to 1 weekly