(…) At the same time, it can be useful to go beyond standard spend taxonomies (e.g., UNSPSC) to look at MRO spend in new ways. It’s helpful to see not only how many fasteners I buy, how much I spend, with whom, and across what SKUs, but also how those fasteners actually go into a bill of materials (a motor, assembly, etc.). While traditional spend analysis might suggest that the best parts to pursue from an MRO cost reduction or supplier rationalization strategy are a specific set based on price variance and availability, it might be that re-sourcing a given lot of fasteners would require re- tooling or re-qualifying (e.g., PPAP, first article testing) a product or product line. A traditional spend analysis view won’t necessarily tell you this. (…)
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