This news article was originally written in Spanish. It has been automatically translated for your convenience. Reasonable efforts have been made to provide an accurate translation, however, no automated translation is perfect nor is it intended to replace a human translator. The original article in Spanish can be viewed at La subcontratación del mantenimiento: la mejor apuesta del departamento financiero en tiempos de crisis

Outsourcing of maintenance: the best bet of the Finance Department in times of crisis

Neil Rogers, CEO of Brammer Iberia, S.A.23/06/2011

June 23, 2011

Never as today had done so necessary to recall the recommendation that Benjamin Franklin, American politician, and the inventor realised in its advice to a young entrepreneur: "Time is Money". Yes, time is money. Effectively. And for companies in the industrial field, this basic principle in the market economy today maintains its maximum effect.

In fact, the current economic context, where there are many periods of downtime, interruptions, reduced orders subject to a strong stock control or the sudden emergence of large commissions needed more that never adopt policies and measures that help to better management of time and resources.

We see that, often, maintenance engineers and purchasing teams spend too long to deal with the immediate problems so that production lines do not stop. This implies a clear impact on their productivity and efficiency: the time dedicated to it rather than bring value to the company to focus on important projects is an important and strategic decline in the company's resources.

Opt for a proactive approach to improve the maintenance of the spare parts as well, often results in significant financial and operational benefits for companies. In fact, every day are more companies decide to outsource services of maintenance, repair and operations (MRO, its acronym in English) to recognize the complexity of the task and its numerous points of improvement.

Good practice both focuses on optimizing the existing inventory, and standardize key products and technologies that are used in the production plant. Therefore, producing leading-edge companies know that recourse to independent MRO professionals represents a guarantee of efficiency and safe production.

Welcome me the present as we can see this type of service from our solution from Brammer Insite. A solution of proven efficacy which is implemented in the customer's premises but that puts the focus on their needs in terms of inventory of parts with technical assistance and expertise required. Thus, managed to significantly reduce the costs of procurement of components at the time the company negotiates with a single provider needs, MRO. In this way, improvements in the whole process translates into real economic benefits. Because of this, the equipment purchasing, engineering and maintenance of the company can focus on value-added activities.

Subcontract management of MRO parts to an authorized Professional Distributor is, therefore, much more than a way to make savings in the short term, is a guarantee of continuity in purchases that allows a professional partner of MRO improve the liquidity of the customer and reduce working capital by optimizing its inventory of spare parts. In fact, an Insite allows you to minimize the risk of periods of downtime and optimize the operation of the production plant due to a technical expert advice that identifies improvements in processes, energy efficiency and the supply of products with a lower acquisition cost.

By way of example, I would like to cite the implementation developed for Alcoa, the world's leading producer of aluminium, which has won great benefits through an agreement of supply, spare, and management of spares and stores with Brammer. The project consisted in the creation of an Insite or Brammer branch in the Foundry of Fjardaal, Iceland, to handle all aspects of spare parts and the warehouse management. Multinational mining and metallurgy sector has been achieved in this way to deal with a single provider, achieving a significant reduction in costs to save both dedication and transactional costs. Thanks to the reduction of the total cost of acquisition and improvement of production efficiency, Brammer has generated close to 1.2 million euros savings for Alcoa.

The formula of an Insite is increasingly a recurring solution customers of the given Brammer which allows you to provide a full range of technical assistance and advice, as well as continuous improvement projects to provide greater productive efficiency.

Subcontract management MRP of spare parts to an authorized Professional Distributor is much more than a way to save in the short term to reduce administrative costs and supplier management. It is also a guarantee of continuity in purchases that allows the professional partner of MRO improve the liquidity of your customer and reduce its working capital to optimize their inventory of spare parts. In addition, it is also an optimal solution to foster an environment of collaboration between customer and supplier work, offering greater profitability and operating in periods of production performance.

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Brammer Ibérica, S.A. - Rubix

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