MRO procurement—which covers Maintenance, Repair, and Operations supplies—is often one of the most overlooked areas in the procurement landscape.  
However, for Chief Procurement Officers (CPO s) managing complex supply chains, the effective handling of MRO can significantly impact operational efficiency, downtime reduction, and overall cost optimisation. 

Unlike direct materials, MRO items are often non-strategic, low-cost, and highly fragmented, making them difficult to manage.  
From stock-outs of critical components to excess inventory and untracked spending, MRO procurement challenges can quietly erode an organisation’s efficiency and profitability. 

In this blog, we uncover five common MRO procurement pain points and explore how forward-thinking CPOs can resolve them through strategic interventions and process innovation. 

1. Lack of Visibility and Control Over MRO Spend 

The Challenge: 

MRO spend is typically scattered across multiple departments, locations, and suppliers, making it difficult for CPOs to track purchases or enforce standardization.  
This often leads to maverick spending, poor contract compliance, and misalignment with corporate procurement goals. 

The Solution: 

To regain control, CPOs should centralize MRO procurement using digital platforms that enable real-time visibility into purchases across all locations.
Implementing a unified catalog and spend analytics tools can help track consumption patterns, identify savings opportunities, and eliminate off-contract purchases. 

Key Tip: Align MRO spend data with your enterprise resource planning (ERP) system to streamline oversight and reporting. 

2. Excessive Supplier Base and Fragmented Purchasing 

The Challenge: 

Many organizations rely on hundreds of MRO suppliers to fulfill thousands of low-value items, creating inefficiencies in procurement, invoicing, and vendor management.  
This fragmented approach results in higher transactional costs, reduced negotiating power, and inconsistencies in quality and service levels. 

The Solution: 

CPOs should initiate a supplier rationalization program aimed at optimizing MRO purchasing by consolidating suppliers. 
Strategic sourcing of preferred vendors and leveraging volume for better pricing and service agreements are key strategies. 

Key Tip: Use a scorecard to evaluate suppliers on quality, delivery, pricing, and responsiveness before consolidation. 

3. Poor Inventory Management and Stockouts 

The Challenge: 

Unreliable inventory management often leads to overstocking of non-essential items while running out of critical spares, causing unplanned equipment downtime and production delays. 
In many cases, there’s no accurate picture of what’s in stock, where it’s located, or when it will be used. 

The Solution: 

Adopt a predictive inventory management system that integrates with plant operations.  
CPOs can reduce MRO costs and increase availability by implementing just-in-time (JIT) replenishment strategies, automated reorder points, and barcode scanning. 

Key Tip: Conduct regular inventory audits and apply ABC classification to prioritize critical items. 

4. Decentralized Procurement and Inconsistent Processes 

The Challenge: 

When each facility manages MRO procurement independently, organizations face inconsistent purchasing practices, lack of compliance, and missed opportunities for bulk discounts. 

These silos can also hinder visibility and delay maintenance activities. 

The Solution: 

Standardize procurement processes across all sites through centralized governance.  
Create a unified procurement policy, mandate e-procurement tools, and define workflows for approvals, requisitions, and vendor engagement. 

Key Tip: Empower site-level teams with clear SOPs while maintaining control through centralized monitoring. 

5. Limited Focus on MRO Cost Reduction 

The Challenge: 

Because MRO items represent a small portion of total spend, they often don’t receive strategic attention.  
However, inefficiencies in MRO can lead to hidden costs such as downtime, emergency purchases, and maintenance delays. 

The Solution: 

CPOs must shift from a transactional mindset to a strategic approach in MRO procurement.  

Cost reduction opportunities lie in demand aggregation, contract renegotiation, supplier collaboration, and lifecycle cost analysis.  

Leveraging data-driven insights and working closely with operations and maintenance teams is crucial. 

Key Tip: Set MRO-specific KPIs such as cost per item, fill rate, and service level agreement (SLA) compliance to drive performance. 

Strategic Takeaways for CPOs 

MRO procurement may not always be in the spotlight, but the hidden inefficiencies in this space can have a disproportionate impact on the organization’s bottom line.  
 
By addressing these five pain points head-on, CPOs can deliver: 

• Reduced procurement costs through supplier consolidation 

• Improved uptime with better inventory planning 

• Enhanced visibility and control via digital procurement systems 

• Greater compliance with centralized governance 

• Sustainable, long-term value through continuous process improvement 

With increasing emphasis on agility, cost efficiency, and supply resilience, optimizing MRO procurement is no longer optional—it’s a strategic imperative. 

Want to streamline your MRO procurement operations? 

Mail your inquiries to emea@moglixbusiness.com  or get in touch with our team here: https://business.moglix.ae/contact-us/