In January, MRO supply chain specialist Entec International will be expanding their service to encompass onshore suppliers for snack food operations in Australia and New Zealand respectively located in Brisbane, Adelaide and Auckland.
The move comes after two years of trials with a multinational snack foods and beverage client, with multiple operations across North Africa the Middle east and Asia, during which Entec has managed all ‘offshore’ or imported MRO demand, along some challenging global supply chains. By co-ordinating sourcing, procurement and logistics from 120 capital equipment parts suppliers across USA, Europe and UK, then consolidating weekly shipments of spares into the client’s operations, Entec has significantly reduced complexity as well as the customer’s costs and CO2 footprint.
Based on this success, Entec will now step closer to the client’s ANZ operations, taking on the management of over 300 local suppliers and providing a single source for all MRO spares, further simplifying supply chains, increasing customer control and saving substantial additional costs.
Known as ‘Project Blue’, this third-party MRO (3PMRO) collaboration follows the same journey plan as Entec’s other FMCG clients; providing world class MRO materials management that changes the MRO stores from a let’s keep it Just In Case model to a planned and globally available Just In Time spares stock profile.
In this next phase of the project for the client, Entec will add further value through process improvements, such as the introduction of a single set of payment terms, with local currency invoicing for multiple local, regional and global suppliers, which will improve operational cash flow. They will also produce a fixed price e-catalogue for fast-moving and high-volume items to reducing the need for multiple approvals. Finally, by optimising the spares inventory, Entec will improve the client’s return on capital employed.
To date, Entec has delivered 17% savings on MRO supplies from offshore sources. Further savings will accrue once the full Project Blue is implemented to cover all suppliers to the region.
According to Director, Mike Robinson, the move is significant for Entec, not only in the expansion of the company’s service to their global client, but also as an opportunity for growth across the Australian FMCG, Pharma, Mining and minerals sectors.
“Operating onshore in Australia, in partnership with a globally recognised brand, will enable Entec to create new client and supplier partnerships as we establish a permanent presence and build awareness of our specialist MRO services,” he said. “This is our first venture into the region and we are determined to explore all opportunities available to us.”