Viewpoint

5 | Supply Chain Management Viewpoint
Spend mapping and scope definition
The spend mapping and scope
definition phase starts with an
analysis of MRO service spend at a
company level, classifying it first into
appropriate categories and then again
at a site level. The output, in effect, is
a detailed—and classified—MRO
service spend database by site.
Using this information, an
organization can form a view of
fruitful site-by-site categories and
locations to tackle. Again, the focus is
on pragmatism: For example, if the
overall spend at some locations is too
small, then a company may opt to
defer those locations in favor of better
opportunities. Similarly, if the
expenditure on some categories is
simply too small to offer any prospect
of worthwhile gains, then managers
might choose to disregard those
categories in favor of better prospects
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elsewhere. Having said that, it is
important to note that categories and
sites sidelined in this way are not
permanently excluded from
consideration. They can be tackled
subsequently, when gains elsewhere
have been secured.
The last step of this phase consists of
a combined meeting for the sites
selected within each target cluster. Its
purpose is to validate the spend data,
gather support and momentum for the
project, and carry out the initial cross
functional team selection. If there are
any doubts about the appropriateness
of the exercise—at either a category or
site level—then those issues should be
raised at this time. However, the
painted picture is often too alluring
to resist.