This webinar focuses on the challenges in MRO procurement and explains how it is possible to achieve a harmonized and effective purchasing process for spare parts and services for maintenance and achieve both operational impact and savings. Watch webinar: https://www.opuscapita.com/webinars/2018/mro-procurement-3-keys-to-managing-the-complexity

1. MRO PROCUREMENT:
3 KEYS TO MANAGING THE
COMPLEXITY
January 24, 2018

2. MRO and Complexity Managed
1 Introductions
MRO explained
3 Keys to managing complexity
Q&A
2
3
4

3. Rowan Lemley (host)
Introductions
Kelly Babbit
Head of MRO CoE
OpusCapita

4. 10.11.2017 OpusCapita4
OpusCapita – what we do
• Source-to-Pay
• Cash Management
• Business Network
• Product Information Mgnt
• Order-to-Cash
A broad and
differentiating portfolio

5. Sourcing &
Supplier
Engagement
Operational
Procurement
Invoice
Automation
Supplier Information
Manager
RfQ
Catalog Manager
Network Portal
Online Product Catalog
Smart Forms
Procurement Manager
Budget Manager
Service Procurement
Inventory Manager
Our Business Network connects your processes to your
customers, your suppliers, your banks and more.
E-Invoice Receiving
Invoice Manager
Matching
Mobility
Business
Network
900 000 Suppliers
40 million Products
220 million annual invoices
100 billion in annual
payments
11 000 banks connected
via SWIFT certified
payments
PEPPOL and EU compliant
Enabling end-to-end automationOpusCapita Source-to-Pay

6. Let’s talk about MRO
ChallengesProcessStakeholders

7. MRO/EAM Stakeholders
Maintenance Engineers
▪ Plan Work Orders
▪ Order Materials and Services
▪ Schedule Resources
▪ Monitors Work Order Execution
Warehouse Managers
▪ Warehouse Managers
▪ Manage Stock & Replenishment
▪ Pick & Stage Secured Material
▪ Distribute Material
Key purchasing
commodities
− Spare Parts
− Services
− Maintenance
Consumables

8. eProcurement Stakeholders
Procurement Managers
▪ Measured by reduction of procurement material and process costs
▪ Push to automate
▪ Requirement to minimize free-form requisitioning
▪ Focus shift to strategic procurement
▪ KPI to maximize automation and spend compliance
Finance Managers
▪ Measured by reduction of accounts payable process costs
▪ Drive to automate as much of the finance process as possible
▪ Need to maximize the amount of spend on correctly priced
purchase orders, to realize promised Sourcing savings

9. Procurement and Maintenance - the odd couple
Procurement questions
• Why am I still getting a high level of free form text requests from maintenance?
• How can I minimize having to source the parts ordered by Maintenance?
• Why can’t Maintenance find their parts in the Supplier Catalogs I have implemented?
• Why am I getting such a low level of use of the Catalogs for ordering?
• How can I get prices updated automatically in all of maintenance’s automated Requisitions?
Maintenance Questions and Comments
• Why are you asking me to source parts from suppliers? That procurement’s job!
• Why are you asking me to use the eProcurement system? I cannot find what I need in that system.
• I need to go to 3 systems to find a part. You have made my job harder.
• You are asking me to use the new eProcurement system but:
– Why can’t I find Supplier parts based on on my Internal Part Numbers?
– Why can I not find Parts by Equipment BOM’s?
– Why can I not search on OEM part numbers?
– Why can’t I search based on part technical attributes?

10. Maintenance
Requires a part or
service to perform
maintenance and
repair work
Warehouse
Determines if part is stocked or
needs to be ordered
Procurement
The price is validated, or
sources the part and an
order is placed
Supplier
Confirms order and
delivers the part
Maintenance
Schedules and
Performs the work
An MRO process example
Warehouse
Receives material and stages it
for maintenance

11. Maintenance, Repair & Operations
MRO
Supplier catalog
management
Pricing and price
validation
Integration of shop to
ERP/EAM systems
Source of supply and
ordering from
inventory
Non-catalog and
services procurement
MDM and parts book
integration

12. Efficient maintenance, repair and operations
Typical challenges
• Managing supplier catalogs and pricing
• Connecting the shop to assets, inventory, BOM’s and suppliers
• Non-catalog and services procurement
• Inventory replenishment
15%
Efficient MRO supply can reduce
procurement related costs by 8-
15%.*
Our approach
• Modern tools to manage supplier catalogs and pricing
• Real-time price validation against EAM/ERP
• Direct connection between SHOP and existing ordering process
• Extend SHOP by linking assets, BOMs and source of supply
• Create smart forms for services and more complex purchases
*Source: Deloitte – Smarter MRO

13. Finding a part…..

14. 3 Keys to Managing
Complexity
- Pricing and Product Data Management
- Price Validation
- Maintenance User Experience

15. Managing Supplier Catalogs, Parts
Data and Pricing
Business Goals
• Simplify the management of supplier pricing
• Enrich catalogs to support the maintenance function
Approach
• Implement OC CATALOG (SSM - Self Service Manager)
Tools and Touchpoints
• OC SHOP (OPC - Online Product Catalog)
• Syndication of catalogs to ERP and EAM systems
Notes
• Supports Data Enrichment using business rules and Trusted Source
• Buyer Part Numbers and other data merged with supplier catalogs
• Treat warehouses as suppliers

16. Price Validation Services
Business Goals
• Support the planning process by ensuring that material and service
requests are priced correctly upon execution of the work
Approach
• Implement OC SHOP(OPC Online Product Catalog)
• Enable the Price Validation Functions in the EAM and ERP systems
Tools and Touchpoints
• Work Order Approval
• Requisition Creation, Approval (PM, MRP runs, Work order releases etc)
• Purchase Order Creation, Releases
• Invoice Verification
Notes
• Integration required EAM/ERP specific standards (see Technology
section)
• Web Services based Requisition Import

17. Supporting the Maintenance User
Experience
Business Goals
• Establish a one-stop-shop solution for all of maintenance needs
Approach
• Merge data from the EAM, Inventory, and supplier catalogs to a single
view of maintenance ordering
• Establish Catalog Interfaces with Ordering Systems
Tools and Touchpoints
• EAM Systems – Functional location, asset, and BOM information
• Inventory Systems – Materials master, stock locations and stock levels
• Supplier and Procurement Systems - Sources of supply and supplier
catalogs
Notes
• Most Ordering systems support Catalog Interfaces

18. Challenge
• Manage frame contracts centrally
• Improve procurement automation
Solution
• Syndication of Global frame agreement pricing to business unit ERP/EAM
systems
• Established e-Mall shopping experience accessible by all business units
• Integrated SAP EAM data into the shopping experience to provide a
maintenance centric search
Maersk
Industry: Shipping, logistics,
oil & gas
130+ countries
89,000 employees

19. Presentation name
SELL
MORE
BUY
EASIER
PAY
SMARTER
Business
network
GROWTH
OpusCapita
30+ years experience
3000+ Customers
A pioneer of new technology
A thought leader
A partner