At its core, Supply Chain Management is about identifying sources of variability within supply chains, and mitigating any risk related to that variability. This is true from the material requisition stage right through to the receipt of those materials, and affects both direct and indirect supply chains.
Indirect supply chains often face a greater amount of complexity due to the relative uncertainty of demand over time, which leads to challenges in managing the availability of Maintenance, Repair and Operations (MRO) Parts.
However, even though the importance of managing MRO inventories is clear, we often see a lack of attention in the industry to the establishment of high-quality policies, processes and procedures in the procurement and supply network that would positively impact MRO stores. Without adequate supply chain risk management, your global supply chains could be at risk.
Because senior management in successful businesses expect their global supply chain performance to be predictable and dependable, improving overall supply chain performance is a must. This involves finding ways to better manage supply chain risks, and developing more robust supply chain governance mechanisms based on a more sustainable supply chain theory.