HVAC filters, replacement light bulbs and plumbing parts, jan/san supplies, and much more. Every campus has categories of purchases that go unnoticed by students and faculty until something doesn’t work right or fails altogether. Yet, MRO is often overlooked when it comes to procurement.
With today’s tight budgets, that can no longer be the case. Strategic MRO sourcing and MRO purchasing can create significant efficiencies and reduce costs.
Many educational institutions struggle with fragmented MRO operations. Facilities staff may order parts directly from local suppliers, departments stockpile materials just in case, and procurement offices lack visibility into total spend. This decentralization often leads to inefficiencies such as:
These inefficiencies waste money and can also delay repairs or maintenance. You need a structured MRO strategy that brings greater visibility and planning to your MRO purchasing.
Start by aligning your MRO procurement process with shared goals across campus and centralized data.
Data will be your best friend here, helping you balance urgent needs, like replacing a failed boiler valve, with a long-term MRO sourcing approach. For example, you need repair parts on hand for urgent situations, but did you know that organizations typically have as much as 30% excess MRO inventory in-stock? That ties up millions of dollars in items you may never need.
At the same time, much of MRO spend occurs off contract. This can waste money and prevent you from spending in other areas. And it’s simply unnecessary. Implementing guided buying platforms that link to approved and negotiated contracts can reduce off-contract spend by half or more.
If you haven’t already done so, consolidating MRO suppliers and standardizing parts catalogs across facilities is a first step. This helps you get better pricing and makes sure spending is in line with today’s budget realities. It also simplifies warranty tracking and compliance.
You also need a digital solution for MRO purchasing that brings everything together so your procurement is consistent across campus. And you need to think long-term when it comes to MRO sourcing and planning.
Across campuses, we’re seeing a shift from lowest price to long-term value.
There’s a good reason.
Making procurement decisions based on Total Cost of Ownership (TCO) helps you manage budgets over the long-term and make smarter MRO sourcing and purchasing decisions.
Cooperative purchasing remains one of the most effective ways to drive savings in MRO purchasing. You can save significant time and money with competitive MRO sourcing and take advantage of volume discounts, pre-negotiated terms, and compliance without having to juggle executing various RFPs or rely on off-contract spend at higher prices.
For example, E&I Cooperative Services aggregates demand from thousands of member institutions to achieve economies of scale you likely could not achieve on your own. As the only member-owned nonprofit sourcing cooperative that focuses exclusively on serving the education community, E&I also competitively solicits cooperative agreements that are designed for the unique needs and requirements of higher education.
Procurement and facilities teams should work together to develop a preventative maintenance strategy. Modern building management systems can help analyze data and predict when components are nearing end-of-life, giving you lead time for MRO purchasing rather than waiting for breakdowns requiring emergency requests.
The impact of structured MRO management can be significant. Institutions adopting centralized MRO purchasing strategies often see:
Optimizing MRO sourcing and MRO purchasing helps you control spend and achieve greater value across your facilities. Every dollar you save in MRO can be redirected to other priorities. With structure and data, you can change the way you approach maintenance, repair, and operations for greater efficiency.
E&I Cooperative Services helps higher education institutions simplify MRO procurement through competitively solicited, compliant contracts.
Still making MRO decisions based on lowest price instead of total cost of ownership? See how E&I members leverage cooperative purchasing for long-term value.