Let's run our own cafeteria

We want to run our own cafeteria. Okay, we need to hire cooks, busboys and buyers. We need to buy equipment and contract with food service suppliers. We could even issue a market basket and have food service companies give us their prices on lettuce, hamburgers, pizza, etc.Well, maybe not. Let’s hire an expert who knows how to run a cafeteria. We can check on quality and consumption but we do not incur the cost.  We pay for the food when it’s eaten; there is no inventory investment.

Given this same scenario, why then do companies continue to operate MRO storerooms? The existence of these storerooms represents duplication in the MRO supply chain and should be assigned to experts. Food companies do not make widgets; widget companies should not sell food and neither should be in the MRO distribution business.

Do employees complain about the food? You betcha!  And the complaints can be addressed.

Do workers complain about stock-outs, downtime and lack of productivity? Do they stockpile material to secure parts when needed? Of course they do!

Do employees stockpile food? Of course not, because it is there when needed.

A properly operated 3PMRO is like a food service. The experts are running the program. The complaints (when there are any) are handled. The parts are there when needed. And our company can focus on making widgets.