What is the pain point of MRO industry?

MRO procurement has always been famous for its diversity and complexity, high material complexity and difficult management. MRO suppliers are generally small in scale, with many fakes, few varieties and irregular management. The price is opaque, there are many intermediate links, and the categories are complex; Decentralized procurement, high storage input cost and so on. Therefore, how to improve the efficiency of supply chain and reduce the cost of manufacturing industry has become the core problem to be solved urgently. Let's understand the development trend of domestic MRO industry. What are the pain points of 1.MRO industry?

1. There are many categories of procurement, and the procurement is scattered.

Different from the direct material (BOM) that constitutes the final product, MRO product categories are very complex and the production line span is large, which is also a big challenge for enterprise supply chain management.

2. The price of 2.MRO products is opaque.

Many MRO users have low demand, and most of them are provided by third-class or even lower channels, which leads to the fact that product prices are actually controlled by brands or authorized agents, high-level distributors and other channel parties. Layers of distribution, carrying goods several times, greatly increased the cost of products.

3. There are too many circulation links and the terminal price is high.

An industrial product, from manufacturing to final use, has six processes: factory, brand warehouse, agent warehouse, hardware city warehouse, small B warehouse and user production line/warehouse. There are too many circulation links, which leads to high prices.

4, the industry concentration is low

There are millions of people engaged in the wholesale trade of industrial products in China, and most of them are small and micro enterprises or even self-employed, such as hardware stores that can be seen everywhere in the country.

5. Low level of e-commerce.

Although about 82% of industrial customers in China tend to buy industrial products through online one-stop industrial malls, the reality is that the proportion of e-commerce mode is still very small, less than 1%, which is a blue ocean. The main mode is that traditional manufacturers go to the hardware city to go to the small B to go to the client, and there is huge room for improvement.

6. The management cost and storage cost are too high.

Statistics show that MRO materials, which account for 10% of the total procurement of enterprises, generally need to spend about 80% of the purchasing department's energy.

7.MRO docking ERP is the trend.

More and more enterprises begin to use ERP, DSS and other systems for enterprise management and decision-making. This puts forward the demand of system docking for MRO industry.

Enterprises hope that MRO suppliers can quickly connect their own systems and improve supply chain efficiency through supply chain collaboration.

Second, the development trend of domestic MRO industry

1, the integration and convenience under the Internet and big data will break the pain points of traditional industries and bring new development.

There are more than 300,000 manufacturing enterprises in the domestic market, and the demand for docking procurement systems is diverse. However, the rapid development of the Internet has put forward higher requirements for the internetization of the system. This means that under the environment of "internet plus", a professional and complete Internet platform that meets the market demand can seize more optimized market resources. For example, the real-time inventory data of upstream manufacturers are integrated through EDI software system, and the ERP of customers is connected through the interface of punch card system, so as to realize seamless connection with the procurement decision-making process of customers, improve the delivery time of supply chain, ensure genuine products, reduce procurement costs and ensure service quality. This new mode of convenient integration has broken the curse of traditional MRO development, thus providing high-quality, scientific and convenient services for the market and bringing new ideas for the development of MRO industry.

2, enterprises and platforms are connected, and the perfect solution process is cumbersome.

Traditional MRO procurement is difficult to directly wholesale and form procurement cooperation because of the quantity and frequency of procurement. In view of the disadvantages and pain points of traditional industrial products procurement, we should realize the perfect connection between enterprises and platforms, build an online MRO platform recognized and welcomed by enterprises, ensure the quality and price transparency of MRO procurement, provide services for upstream and downstream, and meet the one-stop procurement needs of products.

3. Enjoy the data and win the development.

MRO market transactions have entered the data age, and the competition of MRO platform is largely the competition of big data. At present, it is difficult for most domestic MRO enterprises to get out of the strange circle of traditional mode. Therefore, under the "internet plus" mode, we should pay more attention to the analysis of the purchase order and time data after purchasing products, and further understand the purchasing habits, purchasing cycle and capital flow of enterprises through the data; In addition, we can subdivide customer groups, adjust and optimize services for different enterprise users, and realize personalized services. At the same time, the data will be shared with enterprises, so that enterprises can see their own problems through MRO procurement.

4. Support the development of small and medium-sized enterprises and implant supply chain financial policies to achieve mutual benefit and win-win results.

The industry believes that supporting the development of small and medium-sized enterprises and implanting financial policy cooperation in the supply chain is a win-win strategy. On the basis of doing a good job in MRO service, we should pay attention to and support the development of small and medium-sized enterprises, implant supply chain financial policies, and help the healthy development of MRO industrial products industry.

5, advocate clean office, realize the transparency of enterprise procurement.

Innovation-driven, quality first, green development, structural optimization and talent-oriented. Innovating the advantages of advanced MRO enterprises and taking the road of a new era that conforms to the reality of China MRO market and its own positioning is a problem that every MRO practitioner in China should think about now. It is believed that in the era of networked thinking and capital strength, with the support of big data technology, China MRO industrial e-commerce platform can walk out of a broader world.