MRO encompasses all maintenance parts necessary for repairs and production support within an organization. Despite being necessary for operations, MRO is classified as part of indirect expenditures. MRO procurement encompasses office supplies, cleaning supplies, computers, and tools necessary for production maintenance.
The difficulty with MRO procurement is that it is not easily noticed; it is a spending category that purchasing teams tend to ignore when trying to optimize costs. MRO expenses are typically spread out among different functions and units, but by utilizing a procurement software, companies can track MRO expenses, optimize operations, and reduce overall product ownership costs.