Once your supply chain crew are all on board, here are some ideas for MRO improvement. How to improve MRO against supply chain risk It can also be a challenge to explain the importance of MRO to supply chain staff who are more concerned with hitting targets and reducing budgets. Just like tracking Scope 3 emissions, it can be tough to be certain that each portion has been cared for. Usually in a supply chain, MRO is decentralised and each separate link has its own needs. Yet MRO is still overlooked - until something goes wrong and it causes a disruption.īy sticking to an MRO budget, creating an MRO plan, and dedicating resources to updating MRO items, you can ensure that your supply chain runs efficiently and to customer satisfaction.īy not properly maintaining, repairing, and updating systems, the supply chain can be critically damaged, causing unplanned shutdowns, high shipping costs, lost productivity, and frustrated customers. Now, following the restrictions due to COVID-19, the whole world is aware and grateful of the work put in by international teams, who keep the world fed, clothed and comfortable. Prior to the pandemic, few people gave the supply chain much thought. The importance of MRO in the supply chain ![]() Poor MRO management can cause just as much disruption as a big world event, so here’s how to keep your supply chain running smoothly. It is analogous to SCM, but instead of finished goods, it involves the flow of services to the customer.The long-term wellbeing of the supply chain requires effective management across maintenance, repair, and operations (MRO), which includes everything from safety equipment to cleaning supplies, used everywhere from production to repairs.Īlthough such items are not the items being moved along in the supply chain, they keep it moving. However, service chain management focuses more on the "chain" of services themselves and the people who provide those services, in addition to the physical side. For example, service chain management has significant overlap with the service supply chain, especially in regard to the parts and materials needed to provide efficient service. There are also similar-sounding terms that mean something different. Some reference sources divide the category into product service supply chains and service-only supply chains. It can also mean a network of service providers and supporting elements, such as the management of information, processes, competencies and money. The phrase service supply chain is also sometimes used to denote a category of supply chains for service industries, such as finance, healthcare, hospitality and professional services. In addition, service lifecycle management ( SLM) processes and software handle many of the product-service steps, including reverse logistics and parts management. ![]() Few ERP and SCM vendors offer software expressly for service supply chain management, instead handling it in their standard offerings.Ĭertain service processes, such as field service management, have dedicated software that accesses the service supply chain through integration with SCM and ERP systems. While it historically focused on the manufacturing supply chain, it has broadened to include the supply chains of service industries, retailing and others. SCM is a major component of most enterprise resource planning ( ERP) software suites. In contrast, the purpose of the service supply chain is after-sales service and support for a product, such as scheduled maintenance and repairs made under warranty. Supply chain management ( SCM) is now a broad range of activities for planning, controlling and executing not just the flow of materials for producing a product, but the product's distribution to wholesalers, retailers and end customers. The term supply chain originally referred to the supply of raw materials, parts and other goods needed in the manufacturing process. ![]() Many manufacturers often turn to third-party logistics providers ( 3PLs) to manage this part of the service supply chain. The service supply chain also involves the logistics required to return a product for repair, servicing, replacement or recycling, a process called reverse logistics. It addresses the supply of parts, materials, personnel and services needed to provide timely and effective product service, such as repair and maintenance. The service supply chain is the part of the supply chain dedicated to providing service on products.
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