YOUR PROCUREMENT PARTNERMRO CONSOLIDATOR
Procurement of MRO (Maintenance, Repair, and Operations) spare parts presents numerous challenges. The primary goal is ensuring reliable procurement at competitive prices.
However, businesses often struggle to balance potential savings on item pricing with increasing hidden external and internal costs that accumulate at each step of the procurement process for each delivery from each supplier.
Companies across the globe are increasingly recognizing the value of strategic MRO consolidation partnerships that are proactive, client-focused, and non-transactional. These partnerships help eliminate inefficiencies while driving down costs and improving sustainability.
With 50 years of experience, DESKA supports clients by streamlining processes, reducing costs, and minimizing environmental impact as their trusted MRO consolidator.
Vendor base reduction is the strategic process of reducing the number of suppliers a company works with, aimed at improving efficiency and streamlining operations. By fostering stronger relationships with a select few vendors, businesses can better meet their objectives and optimize procurement processes.
Companies reduce their vendor base to lower administrative costs and simplify supplier management. A more concentrated vendor base enhances operational efficiency, as managing fewer suppliers eliminates unnecessary complexities. The most effective way to achieve vendor base reduction is to centralize the procurement of MRO spare parts from various manufacturers under one umbrella by partnering with a MRO Consolidator.
An MRO (Maintenance, Repair, and Operations) Consolidator is a strategic partner that allows clients to easily consolidate demand for MRO spare parts from various manufacturers.
Acting as the sole point of contact for clients, the MRO consolidator manages everything from sourcing and negotiating to ordering, delivery coordination, and invoicing. This simplifies communication, reduces administrative burdens, and minimizes the hidden costs typically associated with managing multiple suppliers.
International businesses increasingly work with only a few selected companies: their main OEM suppliers or line integrators, as well as a carefully selected MRO consolidator that combines deliveries from various sub-suppliers at a central warehouse and arranges regular consolidated shipments to client sites. This can generate significant savings across the entire procurement process. Clients benefit from volume purchasing, better pricing, and more favorable contract terms.
Additionally, MRO consolidators offer expertise in customs regulations and export procedures, ensuring that all supplies are delivered efficiently, avoiding delays or disruptions. This approach enhances transparency and control over procurement activities, while also helping businesses track spending and identify cost-saving opportunities. The result is smoother operations, reduced total costs, and improved overall efficiency.
Any company can benefit from using a MRO Consolidator, but those with a wide variety of suppliers and small-volume purchases stand to gain the most. The more fragmented your supplier base and the greater the number of one-time purchases, the greater the opportunity to consolidate shipments and reduce hidden internal and external costs.
Additionally, companies with a regular purchasing volume of at least €500,000 in MRO spares per annum are prime candidates, as they will have a regular flow of purchase orders and deliveries and can realize significant savings through volume consolidation and reduced landed costs per item.
MRO consolidation is especially beneficial for businesses that find their internal teams overwhelmed by supplier management and sourcing tasks. By externalizing these responsibilities, companies can reduce administrative burdens and focus on their core operations.
Two factors make businesses especially well-suited for MRO consolidation:
- High Import Ratio: Many of the spare parts used in production are imported, adding complexity to the procurement process.
- Complex import processes, including documentation, certification, customs requirements, and complicated payment methods such as Letters of Credit.
Companies striving for sustainability also profit from working with MRO consolidators. These consolidators often collaborate with suppliers that prioritize eco-friendly practices, allowing businesses to reduce their carbon footprint without compromising on operational efficiency.
YOUR CONSOLIDATION EXPERTWORKING WITH DESKA
In today’s procurement landscape, the increasing focus on automated purchase orders – often without advanced planning and coordination – can result in an increase in total procurement costs.
Delivery charges, logistics costs and internal process expenses are major drivers of rising MRO spend. Many expenses arising from supplier management, contracts, purchase orders, deliveries, customs clearance, goods receipt, invoicing, and payment are often overlooked in price comparisons and tenders.
DESKA, as your MRO consolidator, helps rethink your procurement approach, allowing you to reduce unnecessary chores and avoidable costs. We enable you to focus on your core responsibilities while ensuring that your operations remain sustainable and ecologically responsible.
Explore how working with DESKA as your consolidation partner will help optimize your procurement process at every stage:
TRANSFORMING PROCUREMENTMRO CONSOLIDATOR ADVANTAGES
01 Contract
Without MRO Consolidator
- Complex and time-consuming contract initiation, negotiation and finalization, ongoing contract management efforts
- Various supplier contracts with low relative additional savings
- Complex risk, compliance, and fraud management
With MRO Consolidator
- One MRO consolidator framework agreement covering hundreds of manufacturers and brands
- One-time negotiation with your trusted partner, effortless Contract Management with one dedicated key account manager
DESKA Added Value
- Favorable payment terms
- Flexible delivery terms
02 Request for Quotation
Without MRO Consolidator
- High effort for market analysis and vendor management
- Elaborate and time-consuming price comparisons for low relative savings
- Suppliers with low commitment and transactional relationship
With MRO Consolidator
- One dedicated KAM for all your MRO demands
- Time savings throughout the RFQ stage and effortless RFQ status tracking
DESKA Added Value
- Best practice suggestions where applicable
- Dedicated customer service and competitive prices for a wide range of MRO spares
03 Purchase Order
Without MRO Consolidator
- Complicated, time-intensive supplier selection based on a balanced assessment of delivery times, total procurement costs, and payment terms
- Time-consuming order confirmation tracking and follow-up, with a risk of lost purchase orders
- Multiple supplier contracts, each with its own friction
With MRO Consolidator
- Simple order placement without the need for complex comparison and planning
- One Order Management Key Account
DESKA Added Value
- Priority Orders and Express Shipments
- Weekly order overview with comprehensive visibility into delivery status and timelines
04 Consolidation
Without MRO Consolidator
- Separate shipments from each supplier with little to no consolidation
- Freight charge savings retained by the supplier in case of consolidated shipments
- High delivery-to-item cost ratio
With MRO Consolidator
- Full transparency of order status and stock levels, available at any time
- Consolidated shipment of various Purchase Orders withitem repacking and consolidation into single packages to minimize freight charges
DESKA Added Value
- Freight charge savings fully passed on to the client
- Regional shipping hubs for additional savings
05 Shipping Coordination
Without MRO Consolidator
- Inconvenient coordination of deliveries and complex organization of partial deliveries
- No reliable coordination of delivery schedules
- Unnecessarily large number of purchase orders, each requiring extensive tracking, customs clearance, goods receipt, invoice handling, and payment
With MRO Consolidator
- Full transparency of order status, inbound delivery schedules and stock levels
- Flexible stockholding of your items and maximum control over the timing of your next delivery
DESKA Added Value
- Instant deliveries for urgently needed items
- Longer consolidation periods and fewer deliveries → lower delivery-to-item cost ratio for MRO items
06 Documents
Without MRO Consolidator
- Underestimated incidental purchasing costs, many separate import procedures, each incurring fees, charges and taxes
- High costs for import requirements such as letters of credit and various certificates for each delivery
- Document Costs like Certificate of Origin, EUR1, Declaration of Preferential Origin, Invoice legalization for each delivery
With MRO Consolidator
- Multiple purchase orders with items from various suppliers combined into one delivery
- Fees and taxes for documents and certificates required per shipment are significantly reduced
DESKA Added Value
- 50 years of experience in customs requirements
- Active suggestions on avoidable costs and fees
07 CO₂ Footprint
Without MRO Consolidator
- Focus on fully automated POs and deliveries leads to an excessive number of shipments
- International shipments require considerable amounts of packaging and filling material
- Unsustainable use of finite resources
With MRO Consolidator
- Significant decrease in separate shipments
- Reduction in packaging and filling materials, significantly reducing CO₂ emissions
DESKA Added Value
- Proactively optimizing shipments for CO₂ efficiency
- Calculation of CO₂ savings and issue of a CO₂ savings certificate for consolidated shipments
08 Reporting
Without MRO Consolidator
- No reporting system for area procurement management teams
- No overview of the delivery-to-item cost ratio or incidental costs
With MRO Consolidator
- Strategic partner providing support in meeting MRO Procurement KPIs
- Spend analysis and reporting across sites, countries and area business units
DESKA Added Value
- Full KPI alignment, tracking and regular reporting for area procurement managers
- Capability for extended reporting on advanced metrics, material master data analysis, etc.
Procurement professionals are well aware that significant costs occur at each step in the procurement process, whether it’s managing suppliers, contracts, purchase orders, deliveries or payments.
Everyone is talking about vendor base reduction and struggling to “get it right”. As your MRO consolidator, DESKA offers you a sustainable and economically viable procurement solution. Moving from single RFQs and individual deliveries toward a comprehensive and sophisticated consolidation strategy, we help you implement meaningful changes that reduce costs and improve efficiency.
Connect with us to discover how DESKA can support your procurement needs and help you benefit from a MRO consolidation partnership.
DOING YOUR PARTCO₂ FOOTPRINT
DESKA is committed to creating more sustainable supply chains by strategically consolidating client demand. By consolidating shipments and optimizing logistics, DESKA reduces carbon emissions and minimizes its environmental impact.
Through the consolidation of clients’ demands, DESKA effectively reduces the number of deliveries required. This approach minimizes the use of transportation resources and reduces fuel consumption, leading to lower greenhouse gas emissions. By optimizing routes and modes of transportation, DESKA further enhances efficiency and reduces the overall carbon footprint associated with the delivery of spare parts and materials.
Consolidation also allows DESKA to maximize container capacity, reducing excess packaging materials. This not only minimizes waste generation but also optimizes the use of storage space, leading to better resource utilization and reduced environmental impact.
By consolidating clients’ needs, DESKA contributes to a greener supply chain by promoting sustainability and reducing the ecological footprint. The company’s commitment to environmental responsibility ensures that clients can benefit from cost savings while reducing environmental impact.
In summary, DESKA’s approach to consolidating clients’ demands not only delivers cost-efficient solutions but also aligns with sustainable practices. By minimizing the number of deliveries and optimizing logistics, DESKA reduces its environmental footprint, reduces carbon emissions, and contributes to a more environmentally friendly supply chain.
I enjoy helping clients make smarter procurement decisions, eliminating hidden costs at every stage of the process. I look forward to helping clients avoid unnecessary expenses and achieve significant savings, all while reducing their environmental impact.
Connect with me to see how using DESKA as your MRO consolidator can benefit your business.
