Entec’s Project Fulcrum is a 3rd Party MRO (3pMRO) integrated supply partnership – providing the client operations, in complex markets, a single source for their MRO and indirect spend needs. The project delivers best practice in parts procurement, optimal inventory and improved engineering stores management across core components (mechanical, electrical, pneumatic, control & power) and consumables (PPE, lab consumables, tools, lubricant etc.). The project delivers cost clarity across the MRO and indirect category of spend and, through shared responsibility for supplier management, informs and supports strategic decision making.
The objectives laid out, when teaming up with the world’s largest producer of beverage alcohol, within Project Fulcrum were aligned toward the creation of commonality and a uniform process. The supply base was rationalised from thousands to one, with standard T’s & C’s which include common payment terms and FX risk management. An e-catalogue is developed to streamline the P2P process, on fast moving and consumables, which works together with the business engineering requirement to deliver global & regional standardisation to parts naming, numbering and component specifications. Entec performed the profiling and optimisation of inventory, including the revision of stock levels based upon criticality, consumption and lead time. Standard operating procedures will be delivered across the stores (including 5S). In order to deliver value to suppliers, strategic relationships have been developed with key component manufacturers, whilst common pricing, service level agreements and standard processes underwrite the delivery of service excellence to the end users.
The project quickly showed key areas of value creation. Including; the reduction in the cost and time associated with the acquisition and provision (sourcing, procurement & stocking) of spare parts, the release of cash from reduced stock (reduction in capital deployed), and the improvement in service levels (stocking accuracy, parts retrieval time, parts performance) in support of productivity.
The test site for this project recognised immediate value ensuring that the project gained high visibility and could roll out across the groups regional operations. The value delivered is greatly enhanced as more operations join the project. Dormant inventory is made visible to regional and global operations, whilst managed central purchasing ensures group leveraged is fully deployed.
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