UK based MRO (Maintenance, Repair and Operations) supply chain specialist Entec International has been given the green light to roll out its 3PMRO service across multiple African operations, for one of the world’s largest producers of spirits and beers, following a successful trial in Ghana.
The project is expected to deliver spend of more than $39m per annum, with projected savings at 29% gross along the client’s MRO spend supply chain, once established across all sites in Africa.
Entec’s 3PMRO partnership, known as Project Fulcrum, delivers benefit to all parties as it streamlines ways of working, consolidates supply chains and releases tied capital. Fulcrum focuses on inventory optimisation and the improved use of data to inform purchase decision making. Operating efficiencies are achieved along both the demand and supply chains and Entec is incentivized to reduce cost using consumption based analytics. The project further centralises MRO spend management, which delivers best price and reduced supply chain costs.
According to Entec’s project manager Chris Cullen, the results from the pilot in Ghana were impressive, exceeding targets and convincing key stakeholders to accelerate the program across their manufacturing operations regionally.
“In Ghana, we achieved 27% gross savings against spend value, as well as identifying thousands of dollars’ worth of potential additional savings through purchase avoidance and inventory reduction,” Chris said. “The project has proven benefits and more than pays for itself, requiring no additional budget while delivering cash back to the client’s business. We are delighted that the senior management team unanimously agreed to roll out Fulcrum 3PMRO based on this success.”
Under the 3PMRO agreement, Entec has become an ‘embedded partner’ within the client’s business operations rather than a traditional supplier.
Chris explains, “Effectively Entec has become the MRO procurement ‘gatekeeper’ for our global client. As well as analysing cost to purchase and ensuring parts are bought at best price, crucially we are also focused on inventory reduction and purchase avoidance where data shows us there is an excess or duplication.”
He added that Nigeria and Cameroon operations would be the next to benefit from Entec’s 3PMRO Project Fulcrum, followed by sites across East and Southern Africa.
