International Procurement

ROCKFORT Industrial Solutions has a demonstrated history of effectively acquiring maintenance, repair, and operations (MRO) spares over the previous years. ROCKFORT Industrial Solutions has overseen significant MRO expenditures for prominent Saudi enterprises across various industrial sectors. MRO procurement presents a formidable challenge, involving a diverse and intricate array of highly technical products and specialized services.

Objectives Remain Constant, Priorities Shift

While the Material Management team and Management prioritize savings, it’s essential to acknowledge that end users often have divergent priorities. End users are usually focused on maintaining MRO inventory with a “Just in Case” mindset, prioritizing safety, and preventing downtime and outages. On the other hand, Management seeks high reliability while also aiming for free cash flow and avoiding excessive cash tied up in stockholding.

We are also aware of the challenges of sourcing MRO:

The "Just In Case" mindset, coupled with an average shelf availability of 80%-90% at the site, often leads to overbuying or purchasing more than necessary.
60%-70% of MRO items experience less than one turnover every one to two years due to unpredictable demand.
40%-50% of the total MRO spend consists of unplanned purchases, which can include spot buying.
There are numerous unique SKUs, many of which are specific to certain equipment and associated with defined serial numbers.
There is a large number of vendors, comprising both global and local vendors, operating at individual sites.
We also assist in resolving data management challenges, including unstructured specifications, duplicate entries, part numbering discrepancies, and system inconsistencies, among others.
We collaborate closely with both material management personnel and end-users to meet expectations and achieve significant savings by implementing the following best practices, categorized as A, B, and C Spend.

Spend Management

Spend Management typically refers to the allocation of funds an organization dedicates to purchases, constituting roughly 80% of transactions but only about 20% of the total expenditure. It encompasses a range of activities throughout the procurement cycle. Effective spend management involves making data-driven decisions, necessitating a comprehensive grasp of spend categories such as direct, indirect, and tail spend.

Strategic suppliers, although constituting only 20% of the supplier base, account for a significant 80% of the purchasing expenditure.
Procuring tail spend management externally
Tangible cost reductions
Reduction in overhead expenses
Adherence to regulations
Replace multiple creditors with a singular creditor meeting specific conditions.
Emphasize attention on critical strategic partners.
Leverage beneficial and prearranged procurement terms and pricing with suppliers.
Data analysis and presentation