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Success Story - "Factory MRO Items"

Company Description

$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

Client Results

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

Outsourced Poorly Run Internal Process with Significant Savings