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Success Story - "Factory MRO Items"
  
Company Description
 
$100 Million Specialty Paper Plant
 
Company Situation
and Problem
Unique product; declining sales; high costs of production; high maintenance and repair parts prices; no storeroom controls; poor processes; poor MRO procurement practices; improper staffing.
 
Paladin Actions & Recommendations Completed RFQ to outsource all MRO operations including procurement, stocking, and disbursements; reviewed and compared detailed outsourcing proposals and sample parts pricing; interviewed MRO suppliers; completed contract negotiations
 
Client Results Significantly improved storeroom processes, procedures and controls
   
= Reduced MRO and related material costs by 12%
= Reduced Inventory by $1.0 million
= Reduced 1,000 Suppliers to 1
= Reduced Suppliers' invoices from 5,000 monthly to 1 weekly
    
  
Outsourced Poorly Run Internal Process
with Significant Savings
 
  

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