Entec International is rolling out its 3PMRO (3rd party Maintenance, Repair & Operations) supply chain service in Nigeria for one of the world’s largest food & drink multinationals, following a successful project in Ghana.
Sales Director Charlie Patterson says that Entec moved from a being a transactional spare parts supplier to a 3PMRO supply chain consolidator for the client, having commenced pilot operations in Ghana January 2018.
By replacing the existing large fragmented supply base with a fully managed 3PMRO partnership, Entec achieved a 16.2% cost reduction in the first twelve months of the project, having reduced shipments by 93%, which also cut CO2 emissions by an impressive 5,032 tons
As the single point of contact, Entec streamlined the supply chain, converting a complex process with multiple payment terms in multiple currencies into a single process to pay with common terms in a single currency. Reducing risk and managing complexity is a core value of Entec’s 3PMRO service, Charlie explains.
“As a transactional supplier, there is only so far you can go in reducing commodity cost, but by adopting a holistic approach to the supply of spares, assuming responsibility for managing the entire MRO procurement process and supply chain, we made a big difference to overall efficiency and delivered significant cost-savings,” he says.
Administration time and costs were cut dramatically too, with an 58% reduction in the number of invoices to be processed, while Purchase Orders decreased by 83%, saving Procurement to Payment (P2P) transactions and costs.
As part of an inventory optimisation programme, Entec also conducted an onsite audit of the Engineering stores in Ghana, cleansing and enriching data, standardising part numbers, removing duplication and producing a catalogue of spares to support automation of the ordering process.
Charlie Patterson concludes, “Entec’s 3PMRO solution has enabled our client to streamline their procurement and supply chain processes, reducing overall acquisition costs for MRO spares, which has had a positive impact on both their organisational profitability and competitiveness.”
Having proved the pilot project in Ghana, Entec is now rolling out the 3PMRO service to the client’s sites in Nigeria.