September Professional Development Meeting
Channel Partners: Emerging MRO Supply Chain Structures
September 14, 2010
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What You Missed

Channel Partners: Emerging MRO Supply Chain Structures

A special “Thanks” to both our sponsors for the 9/14 meeting, Ferguson and AFC. For more info contact: Matt Brooks (Matt.Brooks@Ferguson.com 513-672-8736) or Scott Viel (Scott_Viel@afcind.com 513-874-7456).

Bob Ashby, Frank Lynn & Associates, presented an interesting perspective on MRO suppliers and the trends Frank Lynn & Associates are observing in the market. As more companies are centralizing their MRO spend in order to reign in costs and thereby improve their bottom line, MRO suppliers are evolving at the same time in a somewhat similar way grocery stores have become “One Stop Shops”. Suppliers are growing by both adding more products and adding various value added services to meet a larger set of needs of their customers.

The goal or attraction is to ultimately improve productivity. Within the 1st three years of product introduction most cost savings have been captured already from addressing inventory levels, procurement and negotiating price. After 3 years, improving productivity is most efficient way to continue to improve costs.