International Procurement

PetroArab has a proven track record of successfully sourcing maintenance, repair, and operations (MRO) spares over the past several years, OW has managed Millions of dollars in MRO spend for major Saudi companies in more than in every major industrial segment. MRO procurement is a challenge. It encompasses a wide, complex mix of highly technical products and specialized services.

Same Objectives, Different Priorities

We keep in mind that end users have different priorities other than achieving savings which is a priority of Material Management team and Managements.
End users typically have strong attachments to their MRO inventory with Just in Case mind set and to ensure safety, avoiding downtime and outages are the most crucial factors.
Management want to have high reliability but would like to have free cash flow and not end up in locking the cash in stockholding.

We are also aware of the challenges of sourcing MRO:

  • "Just In Case" mindset with average 80%-90% availability on shelf at site Leeds to buying more than is needed
  • 60%-70%%of MRO items turn less than once every one-two year due to unpredictable demand.
  • 40%-50% of total MRO spend are unplanned purchases can account for spot buying.
  • Unique SKUs, many of which are used only on certain equipment with defined serial numbers.
  • Large number of vendors, including Global and Local vendors at individual sites
  • We also help resolve Data management challenges — unstructured specification, duplicates, part numbering, systems and more
  • We work closely with both material management people and the end-user expectations and deliver you substantial savings by employing the following best practices and is Categorized as A, B and C Spend.

SPEND MANAGEMENT

Spend Management is generally defined as the amount of money that an organization spends on purchases that make up approximately 80% of transactions but only 20% of total spend volume. Spend management affects and manages various activities across the procurement cycle. Making data-driven decisions around spend requires a clear understanding of spend categories, including direct, indirect, and tail spend.

  • Strategic suppliers comprise only 20% of the supplier base but represent 80% of the purchasing expenditure.
  • Outsourcing tail spend management
  • Direct cost savings
  • Saving of indirect costs
  • Compliance
  • Replace several terms of numerous creditors with a creditor with one defined condition
  • Focus on key strategic suppliers
  • Take advantage of favorable and negotiated purchase conditions and prices with suppliers
  • Reporting