Global FMCG leader extends MRO agreement with Entec International

One of the world’s leading manufacturers of soft drinks and savoury snacks has concluded a new 3 year agreement with MRO (Maintenance, Repairs & Operations) procurement and supply chain specialist, UK based Entec International.

The new agreement expands the existing partnership, established over the last 2 years.

Richard Zeverona, Business Development Manager at Entec, explains. “Previously our main corporate agreement covered all 18 client operations in the APAC and AMENSA regions, including Australia and New Zealand, Thailand, Egypt, Pakistan and Saudi Arabia. Under the new agreement Entec will extend its 3PMRO services to South Africa and India, an increase of 33% in operational scale.”

In managing clients’ MRO procurement and supply chains, Entec consolidates all inbound shipments,  streamlining MRO operations, returning cash to the business as well as reducing C02 emissions. In addition to saving costs, a major benefit to the client of having a single MRO procurement and supply chain partner rather than multiple suppliers is the reduction of complexity and administration, he says.

“In this case, during 2020 Entec delivered a 16% reduction in agreed productivity on a $13m spend across the AMENA region alone, consolidating orders from around 500 suppliers. For our client, this has meant dealing with one organization – namely, Entec –  with a single set of payment terms in a single currency, in place  of hundreds of individual supplier companies across the globe trading in nine separate currencies which had previously left our customer open to large foreign exchange fluctuations.”

Over the twelve months to December 2020, Entec reduced numbers of shipments to the client by a massive 82%, from over 3000 to fewer than 600, and reversed rising carbon emissions, saving more than 9000 tons and generating almost $169,000 in traded carbon values.

At the same time, administration was streamlined as numbers of Purchase Orders were more than halved, with 43% reduction in P2P transactions, avoiding over $204,000 in P2P costs.

“In summary, Entec has transformed a complex and globally dispersed supply chain with extensive supplier management requirements into one that is leaner, easily managed and more productive via the use of integrated SAP systems governed by SLAs measured to agreed KPIs, designed to deliver optimum efficiency and maximise cost savings, “ Richard Zeverona concludes. “It is on the basis of this proven track record of tangible deliverables that we have negotiated a new, extended agreement, and we look forward to working in close partnership with our client to roll out further benefits over the coming 3 years.”