Industrial

MRO Procurement and Inventory Management: Managing a Strategic Partnership

Project overview

Ferguson Industrial renewed a long-standing Aerospace & Defense contract for Supply Chain Services—including purchasing and inventory management of MRO Products. Our focus is on reducing total cost of ownership and increasing efficiencies through comprehensive reporting, strategic sourcing and a detailed understanding of the supply chain.

Performance highlights:

Improved total cost of ownership through:

  • Leveraged pricing agreements

  • Inventory consignment

  • Reduced administrative costs

  • Increased product availability

  • Reduced down-time related to stock-outs

  • Provide service with a sense of urgency

Benefits of our partnership

Strategic MRO Purchasing and Inventory Management: Leveraging a $30 billion supply chain and manufacturer-direct relationships

Customized Reporting and Data Management: Providing data-driven insights to help enable business decisions and effectively manage budgets

Total Cost of Ownership: Performing comprehensive assessments to uncover additional opportunities to meet your cost savings goals year-over-year

Customer Service and Technical Support: Offering a dedicated account team who are pro-active, providing ongoing communications and delivering consistent, high-quality services

Continuous Improvement: Striving to be a strategy for our customers as opposed to just another supplier. This means continuously identifying better parts, processes, and systems to drive efficiencies across your supply chain

Value proposition

Ferguson Industrial leads the industry with best-in-class people, products, and processes. As a true partner, our customers benefit from reduced costs, streamlined processes, and continuous improvements.

Performance goals:

1. Unparalleled Customer Service

  • Customer Survey: over 90% of participants would recommend Ferguson Industrial

  • Established 3PL warehouse exclusively for inventory storage and deliveries

2. Year-Over-Year Cost Savings

  • Over $3M documented cost savings over past 3 years

  • Delivered 11.13% YTD cost savings for the customer

3. Continuous Improvement

  • Facilitate Lean projects and VSMs to streamline processes

  • Lunch and learn with key suppliers to identify cost and process improvement opportunities

25+ years of collaborative partnership

  • Annual cost savings initiatives

  • Inventory optimization and consignment

  • Full visibility to supply chain

  • KPI monitoring and reporting

“Our success is highly dependent on the efforts and contributions of our supplies. We expect our suppliers to deliver value to us and our customers by providing the highest quality products delivered on time and at the best value. Meeting our requirements enables us to produce the high-quality products our customers have come to expect. Exceeding our expectations demonstrates Ferguson’s commitment to excellence and we appreciate the outstanding support and value you provide to our business and our customers.” - Executive Vice President / President, Aerospace & Defense Customer

“Ferguson has been a long-term strategic supplier for our Missile Products business unit (multiple plants) providing excellent value in MRO supply (VMI and 3PL services). I would highly recommend them to you as a service provider for your MRO needs across your Flight Systems Division.” - Vice President Supply Chain, Aerospace & Defense Customer

“We’re fortunate to have a great relationship. We have a predictable and dependable partner that provides us with consumables and many various spot-purchased items that support our day-to-day operations.” - Aerospace & Defense Customer

The Ferguson Difference

Connect with us to learn more about our capabilities. We welcome the opportunity to conduct no-cost site assessments, engage with key stakeholders, and develop ROI models tailored to each organization. This consultative approach ensures solutions are customized to both short- and long-term business goals, laying the foundation for sustainable performance.