INF336 Project Procurement Management
January 7, 2013
MRO Sourcing Goes Global
It is critical for any organization or business to seriously analyze and implement maintenance, repair and operations (MRO) goods and services that will help the company achieve it organizational goals. Johnson, Leenders, & Flynn (2010) explain "Identifying and streamlining key business processes to reduce costs, grow revenues, and manage assets represents an opportunity in most organizations" (p. 77). This is important when applying the concept to maintenance, repair and operations (MRO) goods and services for any company or organization. Scott Singer (as cited in Avery, 2009) tells us "You want a superior unit price, a fair and reasonable mark up and a fulfillment model that provides the service you need" (line 3). With the advent of the globalization of world markets, companies have been forced to transform their strategic plan to accommodate these new emerging markets and competitors around the globe. This has forced companies to direct their efforts to create a strategic plan for taking care of their maintenance, repair and operations (MRO) goods and services associated to the sourcing strategy. The three practices that I found to talk about from this article are; purchasing, buyers, and suppliers. At Stihl the company I work for the Procurement Capital Goods department is responsible for the entire capital goods procurement for the company headquarters. As a lead buyer it supports procurement projects of the associated manufacturing and distribution companies around the world. Its procurement activities mainly focus on Hardware, Software, Information Technologies Construction Works and Warehousing/Materials Handling Technologies and Manufacturing Facilities. Purchasing of production facilities at STIHL is divided into the following functional groups the production facilities and services. To meet market requirements now and in...