ATLANTA, Sept. 12, 2024 (GLOBE NEWSWIRE) -- Verusen, the industry leader driving AI-powered MRO (maintenance, repair, and operations) materials optimization, today announced the findings of its Future Strategies for MRO Optimization survey. The survey by Verusen, WBR Insights, and ProcureCon MRO focuses on the current state and future evolution of MRO materials and spare parts management, highlighting its strategic importance, existing challenges and opportunities.
Nearly three-quarters (71%) of the 250 procurement and operations leaders surveyed think MRO procurement/operations should be treated as a strategic initiative for continuous improvement and a potential innovation source. However, just over half (58%) of respondents note that MRO procurement/operations are treated as strategic organizational initiatives.
Balancing MRO working capital and risk has become increasingly important as large asset-intensive industries such as oil and gas, mining, energy and utilities, resources, and heavy manufacturing seek solutions to optimize their MRO inventories, spend, and risk with deeper intelligence. Roughly half of organizations need to take a risk-based approach, as the survey found that 46% of organizations do not include asset criticality (spare parts deemed the most critical to continuous operations) in their materials planning process.
"The survey highlights a critical need for organizations to align their MRO practices with broader business goals to drive strategic value," said Chris Rand, Head of Research at WBR Insights. "By leveraging advanced technologies and improving data uniformity, companies can transform MRO from a cost center to a source of innovation and competitive advantage."
“Rather than merely seeing the MRO function as a necessary project or cost, businesses now see it as a mission-critical deliverable, and companies are more apt to explore new methods and technologies, including AI, to enhance this capability and drive innovation,” said Scott Matthews, CEO of Verusen. “This is because improving MRO, while addressing asset criticality, delivers tangible results by removing risk and expense from procurement initiatives.”
The survey results underscore the fact that MRO is growing in mindshare among executives as one of the best methods to improve asset criticality and lower organizational risk. This understanding will help take MRO practices to a higher strategic level in the enterprise by 2030, with essential work yet to be accomplished, as an understanding of asset criticality applied to every material under an asset enables operations to make improved, risk-based decisions.
MRO Challenges And Opportunities
Survey respondents expressed specific challenges with product data inconsistencies and inaccuracies from different systems and sources. A lack of standardized data formats and incomplete information hampers efficient inventory management. The problem is further compounded by the complexity of integrating legacy systems with modern data management, leading to fragmented/siloed data. Centralizing inventory management and optimizing procurement without standardized product data is especially challenging.
Only 39% of survey respondents report full data uniformity across all materials, and many respondents do not regularly review asset criticality, which adds to the challenges.
Among the opportunities survey respondents noted, advanced technology is pivotal to future procurement and MRO improvements. Yet, most survey respondents cite the use of ERPs, supplier relationship management tools, and other systems that aren’t purpose-built for MRO as the primary systems they rely on to manage MRO procurement and inventory.
Additionally, respondents noted that they would expect AI-driven analytics of their inventory data to enhance operational effectiveness as part of their MRO practice. However, using technology alone is not enough to ensure success, as organizations must also prioritize continuous improvement in education and shaping the culture of their teams, for example, by investing in training employees in technology, processes, and best practices for working with partners.
For a copy of the complete survey findings, visit: https://verusen.com/collateral/future-strategies-for-mro-inventory-optimization/
Register for the Verusen, WBR Insights, and ProcureCon webinar: From Cost Center to Strategic Asset: Transforming MRO Procurement on September 17, 2024, at 1:00 p.m. ET here: https://wbresearch.zoom.us/webinar/register/WN_agShxuvIS0q2NrY0HbtOZQ#/registration.
Survey Background
The WBR Insights research team, sponsored by Verusen, spoke with 250 procurement and operations leaders for the Verusen Future Strategies for MRO Optimization report. All the respondents are at least partially responsible for indirect, spare parts, or maintenance (“MRO”) procurement or operations at their organizations. All the respondents represent organizations that manufacture their own products without outsourcing.
To learn more about Verusen and its approach to MRO Inventory Management, please visit https://verusen.com/
About Verusen
Verusen is a leading AI-powered MRO inventory optimization & collaboration SaaS provider focused on helping global, asset-intensive manufacturers streamline their supply and materials management strategy. Verusen uses advanced data science and artificial intelligence capabilities to harmonize disparate MRO data across multiple enterprise systems to provide complex supply chains with true visibility for supply and inventory planning and procurement intelligence. This helps organizations reduce risk, optimize working capital, and ensure production uptime to meet customer needs. The result is a foundation organizations can trust to fuel digital transformation and support supply chain maturity initiatives. Headquartered in Atlanta, Verusen has been named to the Inc. 5000 fastest-growing private companies list and one of Georgia’s Top 10 Innovative Technology Companies. Visit verusen.com for more information, or follow us on X/Twitter at @Verusen_AI and LinkedIn.
About ProCureCon MRO:
ProcureCon MRO is the premier event for procurement leaders and professionals specializing in Maintenance, Repair, and Operations (MRO) supplies and services. Bringing together experts from across industries, ProcureCon MRO provides a collaborative space to explore the latest trends, innovations, and strategies in managing MRO procurement. Through expert-led sessions, interactive discussions, and networking opportunities, attendees will gain actionable insights on optimizing supplier relationships, reducing costs, and driving operational efficiency. Whether you’re looking to streamline your MRO processes or stay ahead of the industry’s evolving demands, ProcureCon MRO is the must-attend event. For more information, please visit procureconmro.wbresearch.com.
About WBR Insights:
WBR Insights is the custom research division of Worldwide Business Research (WBR), the world leader in industry-driven thought-leadership conferences. Our mission is to help inform and educate key stakeholders with research-based whitepapers, webinars, digital summits, and other thought-leadership assets while achieving our clients’ strategic goals. For more information, please visit wbrinsights.com.
PR Contact:
Greg Cross
PenVine for Verusen
greg@penvine.com
+1 925 413 5327
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