We used machine learning and a 6-level taxonomy to classify the MRO spend of this company and then applied four advanced-analytics opportunity levers to the global MRO spend. The results included:
- Eliminated price variance by comparing same-parts rates across suppliers.
- Identified top-spend suppliers contributing to 80% of spend.
- Started sourcing parts from non-OEM supplier. Calculated opportunity by applying a 30% rate reduction and 50% capture rate.
- For the most granular categorization, divided SKUs into 3 tiers based on price. Sized opportunity by moving to the lowest cost SKU within each tier.
