Based on the cost reductions achieved within the AMENA region (Asia, Middle East, North Africa), one of the world’s leading soft drinks and snacks manufacturers is to roll out Entec International’s 3rd party MRO (Maintenance, Repair and Operations) service to 21 factories across the Latin America (LATAM) region.
CEO Mike Robinson explains, “Reducing and controlling the costs of production maintenance, repair and operations (MRO), on a global basis, is a key focus for many large manufacturers, who recognise the opportunities for greater productivity, improved operational efficiency and reduced costs. By consolidating supply, in partnership with Entec, manufacturers can leverage scale, simplify their spares supply chains and optimise MRO inventory across multiple operations.
“Due to the measurable results we’ve achieved across the 14 sites in Asia Pacific, Africa and the Middle East, Entec will now be expanding its 3PMRO service to Latin America – a new region for us and a truly exciting development with this client.”
Entec’s results speak for themselves. Their 3PMRO service for the client in AMENA has seen the number of MRO suppliers reduced from 430 to a single consolidated source, delivering daily in to 14 sites in 6 countries. During 2019 Entec reduced the number of air freight shipments to the region by a staggering 82%, with carbon output accordingly down by over 7,500 tonnes. 38% fewer purchase orders have been placed and 46% fewer invoices processed. The client has seen 13% reduction across a multimillion dollar spend, significantly reducing overall costs.
Mike concludes, “For a global brand business with complex manufacturing and packaging operations, often in challenging markets, there are daily demands for planned and unplanned spares. Normally this means working with multiple suppliers, both locally and internationally, all of whom have different ways of working and variable trading terms in multiple currencies.
“Many organisations, while knowing how much they spend and with whom, don’t necessarily understand what they are buying or how many parts they genuinely need to meet demand. When it comes to MRO spares inventory the phrase ‘Just in case’ rather than Just in time, springs to mind.
Entec’s mission is to simplify this essential and often overlooked area of manufacturing operations, bringing increased visibility, control and compliance thereby enabling clients to operate more efficiently, reduce waste and drive out cost”.