In order to determine the financial feasibility of a particular program, a “deep dive” assessment must be performed to identify current operational parameters. Key Performance Indicator’s (KPI’s) will be established based on the benchmark information and used to measure the program’s effectiveness. The following are examples of questions asked during our assessment process.
What is the dollar value of the monthly MRO purchases?
How many monthly MRO related purchase orders are created?
How many issues and receipt transactions are performed monthly?
What is the current value of the MRO related inventory?
How many total line items are in the MRO inventory data file?
How many line items in the MRO inventory showed usage in the past 12 months?
What Enterprise Resource Planning (ERP) system do you currently use?
What value does your company assign to the cost of holding inventory?
How many “ship outs” or repairs does your storeroom perform monthly?
From “Procure to Pay”, what value does your company place on the cost of creating and processing a purchase order?
What are the monthly labor hours spent to procure products?
What is the average hourly wage, with benefits, for MRO purchasing personnel?
What are the monthly labor hours spent to manage the storeroom operation?
What is the average hourly wage, with benefits, for storeroom personnel?
