The eternal battle for the best procurement strategy
Buy directly from the manufacturer or via an MRO distributor? This question has divided procurement teams for decades. Both sides have compelling arguments, but the truth is more complex than a simple "better" or "worse". The right answer depends on your specific requirements.
Direct sourcing: the appeal of the direct route
Ordering directly from the manufacturer means bypassing seemingly unnecessary middlemen. This promises better prices and direct access to technical expertise. For bulk orders, this approach can actually bring considerable cost benefits. Industrial MRO Suppliers appreciate major customers and often reward them with special conditions.
The direct line to the manufacturer also offers invaluable advantages in the event of technical problems. If an Automation Parts Supplier needs to solve a problem with their own product, they often receive faster and more competent help than through intermediaries.
But there is a flip side to this coin. Direct relationships require intensive care. Each manufacturer has its own processes, minimum order quantities and delivery cycles. This can quickly overwhelm procurement companies, especially when hundreds of different industrial parts are required.
MRO Distributors: The power of consolidation
An experienced MRO distributor is like a conductor who combines different instrument groups into a symphony. Instead of juggling dozens of individual MRO suppliers, you have a central point of contact for various product categories. This significantly reduces administrative work.
MRO distributors live from their stockholding. While manufacturers often have weeks-long production cycles, established MRO companies can usually deliver standard parts immediately. In emergencies, this can mean the difference between hours and weeks of downtime.
In addition, top MRO suppliers often offer additional services that manufacturers are unable or unwilling to provide. Conversion work, configurations or the assembly of complete systems from components from different manufacturers are part of their standard repertoire.
Where direct sourcing scores
Direct sourcing has clear advantages for strategic components and major projects. If you regularly need large quantities of identical parts, a direct manufacturer relationship is almost always worthwhile. The cost savings can be considerable and you often gain access to the latest developments and roadmaps.
Even with highly specialized industrial automation parts, the direct route is often the best. Automation suppliers know their complex products best and can develop customized solutions that a distributor cannot offer.
When MRO Distributors are unbeatable
MRO distributors are usually superior for the daily procurement of wear parts, consumables and smaller components. They keep thousands of different items in stock and can consolidate orders. This saves time, reduces transportation costs and simplifies accounting considerably.
MRO supply companies are particularly valuable when it comes to procuring obsolete or hard-to-find parts. While manufacturers have long been focused on new product generations, experienced distributors often still maintain stocks of old components.
The hybrid approach as the ideal solution
The most successful procurement companies rely on an intelligent mix. Strategic partnerships with manufacturers for main components, combined with powerful MRO distributors for day-to-day business. This hybrid strategy maximizes the benefits of both approaches.
It is important that the distribution of roles is clearly defined. Confusion between direct sourcing and distributor relationships can lead to conflicts and inefficient duplicate structures.
The bottom line for smart decision-makers
There is no universal answer to the distributor-versus-direct question. Successful MRO sourcing strategies take into account the specifics of each product category, the company's own resources and the available suppliers. Those who dogmatically rely on just one approach are wasting potential.
The trick is to find the optimal solution for every situation - sometimes it's direct sourcing, sometimes it's an MRO distributor, often it's a clever combination of both.