Capital projects and new construction are often what capture the most headlines, but it’s MRO that keeps things running smoothly. Each year you make a significant investment, efficient MRO management can make a big difference.
Take energy, for example. Campuses in the U.S. spend more than $6 billion each year on energy. Much of that is controllable, so even small gains in energy efficiency or planning MRO solutions can produce significant savings.
However, improving MRO management goes beyond just reducing expenses. It’s a critical area for maintaining your facilities and creating a safe, inviting, and sustainable campus.
Most higher education institutions can improve MRO management quickly by focusing on two key areas:
A unified approach involving maintenance, facilities, and procurement teams can make a big difference. According to The Hackett Group, top-performing procurement organizations generate twice the cost savings as a percentage of spend compared to their peers.
With this in mind, let’s talk about procurement best practices for MRO management. Here are five MRO solutions that provide proven (and measurable) results.
Eliminate fragmented spending, which often leads to off-contract or maverick spending that fails to leverage negotiated rates. It can also lead to overstocking repair parts, which ties up capital. When MRO is spread across departments or campuses, it can promote a use-it-or-lose-it mentality that encourages spending dollars that might be put to better use elsewhere.
Creating a digital workflow that includes all spending across departments and campuses reduces unnecessary spend. It funnels purchases through approved suppliers and contracted rates with a standardized approval workflow.
Centralization also gives you full visibility into spending patterns and forecasting for greater cost control and budget planning.
Some upfront spend on MRO solutions can help you manage costs over the long-term. IoT sensors, building automation systems, and digitizing work orders can help you predict areas where equipment might fail or facilities need closer attention.
Predictive and preventative maintenance are key to long-term savings, extending the lifespan of equipment and facilities.
Procurement sourcing and strategy today increasingly demand sustainability as part of the decision matrix. Energy-efficient lighting, HVAC components, and renewable systems need to be part of your process. Small changes in MRO efficiency can lead to substantial savings, especially for large institutions and multiple campuses.
Besides measurable savings, sustainability efforts are increasingly important to your students, who are demanding more than just recycling bins and posters around campus.
Chances are that your institution is spending on the same supplies and services as many others. Why not combine your purchasing power to achieve volume discounts? One of the smartest ways you can lower costs is by leveraging cooperative agreements for MRO solutions.
You can tap into significant savings and reduce administrative overhead by opting into these competitively solicited agreements. E&I Cooperative Services makes MRO management simpler with access to top-tier suppliers who offer substantial discounts based on the aggregated demand of E&I’s 6,000+ member institutions. As the only member-owned nonprofit sourcing cooperative that exclusively serves the education community, E&I’s procurement experts negotiate favorable terms that are designed to meet the unique needs of higher education.
While you want to save money, you can’t do so at the risk of lowering quality. Monitoring supplier performance is a crucial step in tracking standards and results, creating a cycle of accountability.
When you create feedback loops and track key metrics, you can:
Making real improvements in MRO management requires an ongoing commitment. It takes collaboration between procurement, facilities, and finance teams—and data. Regularly reviewing your spend data to look for areas where you could consolidate purchases and reduce off-contract spend can yield significant results. And, as your process matures, transforming MRO management evolves to create greater economies of scale and compliant spending.
E&I Cooperative Services supports this transformation through competitively solicited cooperative contracts that simplify sourcing, strengthen compliance, and reduce costs.
Reactive MRO management costs twice as much as proactive strategies. See how E&I members shifted from emergency fixes to predictive maintenance.