FM MRO Ideas for today and tomorrow List
- Slides: 7
FM / MRO Ideas for today and tomorrow
List of Directions Contract Management Cooperation Savings Resource Management Control
FM / MRO Contract management Pricing models review • Discount system challenge: switching to net prices, removing discount and rebate systems where appropriate • “Extras” system challenge. Warranties review • Remove unneeded worthless warranties. Checking failure rates against age of items shows probability of failure. Most manufacturers provide warranties for the time when the failures do not happen. Payment terms • Reverse payment terms challenge. Interest fees are likely to go down. Challenge suppliers what kind of discount would they give for payment terms improvement. 2% discount for 30 days equals 24% annual interest fee. If the company gets money cheaper in bank – it is a saving.
FM / MRO Cooperation Using frameworks • Check existing frameworks looking for synergies. • Where possible – use free of charge framework assessment. • Check for framework synergies with public sector knowledge. Supplier involvement • Challenge the suppliers to do the legwork for you: any needed market reviews, analysis: that is saved time and effort. • Supplier relationships management: Cost of Poor Quality identification and mitigation. Benchmarking • KPIs • Benchmarking against best in class • Benchmarking among internal units
FM / MRO Savings Demand Management • Frequencies. • Scope. • Specifications. Total Cost of Ownership • Different ways of buying. • Challenging full life-cycle costs. Process Improvements • Electronic buying – administration costs reduction. • Removing inefficiencies – implementing tools to get best quantity brake or volume based prices.
FM / MRO Resource Management Ad hoc spend • Procurement planning improvements. • Approved Supplier List. Inventory • Analyze inventory turns, working capital and improve it.
FM / MRO Control Category control • Price sense checks for outsourced item procurement. • Second tier supplier checks. • Open book challenge. Supplier Control • KPIs. • Credit Checks. Business Score Carding (BSC) approach • KPIs for Efficiency, Compliance, Accuracy.
