A Study On MRO Centralized Procurement Of AB Company

In the face of ever-changing market competition,enterprises actively embrace change,take the initiative to carry out organizational reforms,and reduce costs and improve efficiency is the way to survival and development.In 2008,AB centralized the direct material purchasing which brought a huge saving for the company.In order to continue to improve efficiency and get cost saving to cope with market changes and gain the market share,AB china decided to change the strategy,organization structure and centralized indirect material to PSS.It mainly refers to the MRO category.Based on AB’s MRO centralized procurement project,this thesis introduced the current situation of AB’s MRO category and the problems and challenges of AB company’s MRO category procurement in China,analyzed the root-court of this issue,and then prove the necessity of centralized procurement of MRO in many aspects.Finally,it puts forward a centralized procurement strategy plan according to its MRO category procurement status.In order to complete the centralized procurement of MRO categories,AB China has overcome internal and external resistance,made major changes to the procurement organization structure,canceled all factory procurement departments,and concentrated the MRO procurement team to Xiamen procurement shared service center.The new MRO procurement team redesigned the procurement strategy and sorted out the procurement process,thereby greatly improving the MRO procurement efficiency and reducing the overall cost.From 2016 to the end of 2019,the number of the MRO procurement team of AB Company in China was reduced by about two-thirds,the PO automation rate has increased from 40%to 84%.At the same time,through the integration and centralized procurement,AB company’s MRO procurement costs have dropped significantly.Studies have shown that companies can make strategic adjustments in accordance with changes in internal and external environments in a timely manner to obtain new core competitiveness.MRO centralized procurement is of great significance to large-scale enterprises with multiple branches.