Tired of high Power Plant MRO procurement costs? Discover how WorldRef MROHub’s AI-powered marketplace & digital tools can streamline your process, reduce lead times, and maximize savings.
Table of Contents
In today’s fast-͏changing industrial settings, characterize͏d by tough compe͏tition and rising operational expense͏s, the n͏eed fo͏r efficiency͏ and cost-saving i͏s crucial especially in heavy engineering industries such as power generation͏, oil & gas, sugar, cement, steel fertiliser, F&B manufacturing etc..
To counter these c͏hallenges, WorldRef MROHub is innovating industrial cross-border procurement saving costs t͏hrough its tech driven MRO (Maintenance – Repair – Operations) marketplace for non-capital equipment, spare parts and associated services.
Image: WorldRef MROHub simplifies the MRO procurement process for power plants
Power Plants are essentia͏l for producing electricity consistently and sustainably. Howeve͏r, they face ͏difficulty in controlling purchasing expenses ͏withou͏t sacrificing͏ quality ͏or reliability. The traditional procurement methods with limited suppl͏ier options ca͏n result in͏ high costs and ope͏rational is͏sues.
WorldRef MROHub offers a new age tech driven appr͏oach that helps͏ Power Plants save mo͏ney while ensuring reliable operations.
The High Cost of Power Plant MRO Procurement
Image: Source MRO equipment and services from a global network of suppliers on WorldRef MROHub
T͏raditional purchasing ͏meth͏ods have been shown to be s͏luggish and ineffective causing power plants to inc͏ur higher expenses. As a r͏esult, there are several disadvantages includ͏i͏ng elevated costs, prolonged do͏wn͏times, and redu͏ced efficiency. Hence it is crucial to͏ i͏nvestigate different methods in order͏ to cut down o͏n time and costs i͏n op͏erational activities.
For any industrial plant, getting equipment, spare parts and related services in time and on budget is crucial ͏for ma͏intaining smooth operat͏ions and healthy plant availability.
Image: Composition of a heavy industrial plant equipments
A typical power plant can house up to ~10,000 individual items manufactured by OEMs around the world. This means having to deal with thousands of sellers! Only 20% of these purchases contribute to 60% of opex cost annually. That remaining 80% is what causes headache for the plant purchase teams. They end up buying these parts through intermediaries paying margins up to 500% with opaque pricing, and delivery nightmares. Additionally, dealing with unprofessional suppliers, inadequate post-sale service, complex EXIM procedures, and a lack of visibility in the supply chain further exacerbate challenges, particularly for import-reliant plants.
WorldRef MROHub: A Tech Enabled Global Marketplace for MRO equipment and services.
Image: WorldRef MROHub helps reduce procurement costs and time at every stage
1: AI-Driven Power Plant Equipment Cataloging for Simplified Sourcing
WorldRef’s cataloguing process starts with a trained personnel team visiting plants, recording equipment Name Plates, capturing detailed information and drawings, and uploading it to WorldRef MROHub.WorldRef employs AI technology to read equipment nameplates, analyse technical documents, and compile a digital catalogue of all tier-2/3 equipment installed in the plant, along with their spare parts Users can access technical data-sheets, design parameters on the go using the WorldRef MROHub app..
2: Digitalized International Supply Chain: Access a Global Network of MRO Suppliers
WorldRef ensures that every product in its catalogue is mapped with one or more sellers worldwide. The entire supply chain—from RFQto delivery—is digitised, making processes faster, economical and transparent.
3: Streamlined MRO Purchasing with One-Click RFQs
With WorldRef MROHub marketplace, Requesting For Quotations (RFQs) is simplified to just a click from your digital plant equipment catalogue. This streamlined process saves valuable time and eliminates to-fro communication, enabling faster responses from suppliers and accelerating the procurement cycle.
4: Instant Pricing Transparency for Faster Procurement Decisions
WorldRef MROHub provides instant pricing for the selected categories of consumables, enabling buyers to make informed decisions quickly. Real-time pricing information empowers buyers to compare options efficiently leading to cost savings and improved procurement outcomes.
5: Reduce MRO Procurement Lead Times with Efficient Order Processing
By leveraging technology and optimising processes, WorldRef significantly reduces procurement time from the traditional 30 days to just 3 days. This expedited timeline enhances operational efficiency and enables power plants to respond swiftly to changing market demands.
6: Achieve Significant MRO Cost Savings Through Competitive Pricing and Efficiency
WorldRef’s innovative approach to aftermarket procurement helps to minimise maintenance, repair, and operations (MRO) procurement costs by a minimum of 20%. By connecting with tier 2 – 3 / unbranded sellers from multiple international locations, WorldRef identifies cost-effective solutions without compromising on quality.
7: End-to-End MRO Fulfilment with Integrated Services for a Seamless Experience
WorldRef ensures seamless end-to-end fulfilment by integrating various services into its platform. From procurement to delivery, including logistics and customs clearance, every step of the supply chain is managed efficiently, reducing complexities for the buyer and enhancing overall procurement experience.
8: Access to After-Sales Service Experts for Ongoing Support
In addition to facilitating procurement, WorldRef also offers access to a network of after-sale service experts and providers. This feature ensures that buyers not only acquire the necessary equipment but also receive comprehensive support throughout its lifecycle. Whether it’s installation, maintenance, or troubleshooting, WorldRef connects buyers with qualified professionals to address any post-purchase needs, thus enhancing the reliability and longevity of the equipment.
Image: Save tons of time and money with MRO Hub
Cost-Saving Benefits of WorldRef MROHub for Power Plants
The transformative advantages of WorldRef MROHub’s benefits reach every facet of Power Plant MRO management and directly affects the reliability of operation.:
- Transparent Pricing: WorldRef MROHub provides complete transparency in pricing of the products. Pre agreed margins enable buyers to save upto 20% in their MRO purchases. WorldRef delivers the most competitive prices through suppliers from different parts of the world on its platform.
- Reduced Supplier Risks: WorldRef undertakes strict supplier verification measures in order to prevent risks associated with unreliable suppliers. Such an approach saves time on extensive sourcing activities by ensuring timely deliveries.
- Faster Procurement: With thousands of trusted suppliers on its platform, WorldRef speeds up the process of sourcing so that the parts and services are delivered at the right time ensuring no loss of production while reducing inventory cost at the same time.
- Transparent Pricing: Buyers can view the price from sellers, WorldRef platform fee, and various value added service fee. This brings complete transparency and lowest possible prices.
- Multiple Buying Options (L1, T1): Get “Lowest Price – L1”, and “Shortest Time – T1” options. Choose as required.
WorldRef makes buying easier and faster, helping Power Plants adapt better to unpredictable situations. Working with trusted suppliers reduces the risk of equipment problems and keeps operations running smoothly. By using WorldRef MROHub, Power Plants can improve efficiency, resilience, and competitiveness in today’s fast-paced business world.
Leveraging WorldRef MROHub for Maximum Savings
WorldRef can help power stations achieve a range of benefits as they collaborate strategically with us and explore every aspect in detail so as to get the most out of them:
1. Purchase Analysis Using AI/ML: WorldRef does not just scan through; it looks deeper into procurement processes by analysing historical purchase data of equipment, machinery, parts, consumables and services. This enables WorldRef to create pricing benchmarks thereby enabling increased savings for plant purchase managers. The machine learning algorithms also predict the requirement of certain parts and consumables which help managers take informed decisions and avoid costly delays.
2. Consolidated Sourcing: A medium sized industrial plant houses about 10,000 different equipment and parts supplied by as many sellers across the globe. Dealing with such a large number of vendors is very costly and extremely complex. Moreover, the logistics and delivery cost of these parts (if bought individually) from the vendors gets exorbitantly high. WorldRef allows plant operators can consolidate their purchases on MROHub so that they don’t have to manage the orders from multiple vendors.
3. Supplier Management: WorldRef doesn’t simply interact with suppliers; it builds cooperative relationships based on trust, transparency, and mutual gain. ,. WorldRef has an elaborate process of vetting the sellers using various channels ensuring high quality of sellers on its marketplace. Suppliers receive AI generated prompts equipping them to provide competitive prices. As for buyers, they don’t have to worry about having to negotiate the payment and delivery terms with various sellers.
4. Dedicated Deal Managers: Once an RFQ is generated, a dedicated Deal Manager gets assigned who is responsible for end to end execution of the deal like a reliable friend. WorldRef Deal Managers are available at all times for a superior buying experience, nurturing a trusted and dependable relationship. The presence of dedicated deal managers gives the plants a reliable friend who walks with it throughout the complicated procurement processes showing personal attention whenever necessary.
5. End to end fulfilment with integrated services: At WorldRef we believe that just vendor discovery is not sufficient for global trade enablement. So, WorldRef undertakes management of the entire supply chain through its tech driven approach. From vendor management to order fulfilment, WorldRef offers top-class global procurement services for industries. Embedded value added services such as order consolidation, quality inspection, custom clearance, international shipping, and post sale support (even beyond warranty period) are hallmarks of WorldRef MROHub.
6. After-sale service experts and service providers: WorldRef is a three-front marketplace where industries can not only procure MRO equipment and spares but can also hire experts and service providers on a long or short term basis. MROHub technology matches the buyers with industry experts and service providers and acts as a one stop solution to avail services from design to installation, repair, maintenance, rehabilitation, replacement and modernisation.
Sourcing is just one part of WorldRef’s wide range of services; the company takes a more comprehensive approach towards procurement by embracing cooperation, innovation and excellence as its core values. By handing over non-capital purchase, Power Plants can optimise their indirect purchase while reducing team’s workload and improving efficiency.
Case Study: Procurement Solution for a German Power Plant
An integrated sugar plant in Africa ran into trouble when one of its important turbine units suddenly stopped working, causing the whole production process to stop. They couldn’t easily find replacement turbines from their usual suppliers in the area, which meant they might be stuck without being able to produce anything for a while. This would cost them a lot of money.
Finding a Procurement Solution for a German Power Plant
WorldRef, leveraging its global network of verified suppliers, swiftly identified a reputable manufacturer in Indonesia specialising in Power Plant turbines. This manufacturer offered a high-quality replacement turbine meeting all necessary specifications at a competitive price point.
The Procurement Process with WorldRef MROHub
With the manufacturer identified, WorldRef seamlessly managed the procurement process from sourcing to logistics. Rigorous quality inspections were conducted to ensure the replacement turbine adhered to the plant’s stringent standards. Additionally, WorldRef orchestrated the intricate logistics involved in international shipping and customs clearance, meticulously coordinating every step to guarantee the timely delivery and installation of the turbine.
Quantifiable Results: How WorldRef MROHub Reduced Procurement Costs
The implementation of WorldRef procurement solution yielded tangible benefits for the German power plant:
- Cost Savings: Through WorldRef’s strategic sourcing, the power plant achieved a remarkable 20% reduction in the cost of the replacement turbine. This cost optimization directly contributed to enhancing the plant’s financial performance.
- Minimised Downtime: By swiftly sourcing a suitable replacement turbine and efficiently managing logistics, WorldRef significantly minimised the plant’s downtime. This expedited resolution mitigated the potential revenue losses associated with prolonged production interruptions, underscoring the importance of prompt and effective procurement solutions in industrial settings.
- Streamlined Procurement: The success of the turbine replacement project prompted the power plant to entrust its entire procurement process to WorldRef. This strategic partnership not only streamlined procurement operations but also led to an impressive annual saving of 22% on Maintenance, Repair, and Operations (MRO) costs. Such a collaborative approach underscores the value of outsourcing procurement to specialised partners with a global reach and expertise.
How WorldRef MROHub Created Value for the Power Plant
The value added by WorldRef goes beyond helping with purchases; we also bring three different kinds of benefits which altogether change how efficient operations are carried out and financial stability achieved in power generation companies.
- Strategic Time-Saving: In the never-ending quest for perfection in business performance, time is recognized as among the most valuable resources. The involvement of WorldRef saves thermal power stations from tiresome supplier searches and long procurement processes. This sourcing journey modification gave these plants something priceless – time. When freed from routine administrative tasks, operators could concentrate on key operational activities thereby increasing efficiency and productivity.
- Strategic Cost-Saving: We are in a period where operating costs are skyrocketing while budgets remain tight. It is only through global sourcing that the WorldRef model can be described as financially prudent. With verified suppliers worldwide, facilitated by WorldRef, Power Plants have achieved substantial cost savings. These savings surpass what could be attained through traditional national channels, given the intense competition in the business landscape. In such an environment, financial stability is paramount for both short-term survival and long-term growth towards profitability.
- Effort Reduction and Operational Optimization: The operational agility of Power Plants is hampered by complicated procurement systems. To go beyond mere savings, WorldRef intervened with a wider solution that relieved plant staff of much work. This meant freeing themselves from all administrative hassles related to buying products or services when they put it in the hands of professionals like WorldRef.
Such freedom allowed them to concentrate more on what was important thereby nurturing creativity and effectiveness within the organisation. In this case, knowledge in procurement possessed by WorldRef made it easy for establishments dealing with thermal energy systems to understand different methods while still ensuring continuity amid changes brought about by growth or trends in industries.
WorldRef emerges as a reliable ally for companies in the power sector, earning trust through a track record of successful projects. Its continuous efforts to enhance efficiency levels pave the way for sustainable cost savings, offering better prospects for success in an ever-evolving industry landscape.
WorldRef Solutions offers a fresh approach to enhance power plant procurement, resulting in significant cost reductions. Leveraging our extensive global network and advanced technology, power plants can simplify purchasing, lower expenses, and boost efficiency.
Committed to integrity and quality, WorldRef serves as a trusted partner, facilitating smooth international transactions for power plants. Our innovative solutions enable sustainable growth and increased profitability in the dynamic energy sector.
Discover the advantages of WorldRef’s MROHub today at https://worldref.co/
