When it comes to sourcing industrial and MRO supplies (maintenance, repair, and operations), most procurement teams focus on the basics: price, quality, and delivery timelines. But behind the scenes, cost overruns, inefficiencies, and risks can quietly erode margins.

Whether you're managing sourcing for a manufacturing plant, utility, or facility operations, industrial and MRO procurement requires more than RFQs and catalogs. It demands visibility, control, and strategy.

Here are the 5 critical factors most teams overlook when sourcing industrial and MRO supplies, and what you can do to address them.

1. Total Cost of Ownership, Not Just Unit Price

Many MRO purchasing teams default to comparing unit prices. But the real cost of a product includes more than what is printed on the quote.

• Unexpected shipping and handling fees.
• Frequent replacements of low-cost, low-quality parts.
• Labor costs tied to downtime or poor durability.

• Shift your focus to total cost of ownership (TCO). Consider performance, longevity, and support when selecting products, not just price.

2. Tail Spend Visibility and Control

MRO supply categories often suffer from unmonitored low-dollar purchases across locations and departments. This tail spend creates complexity and hidden waste.

• Uncontracted buys from non-preferred vendors.
• Repeated purchases of similar or duplicate SKUs.
• Paper-based orders leading to reconciliation issues.

• Leverage spend analytics tools and guided buying channels. Centralize sourcing for repetitive items under preferred supplier catalogs.

3. MRO Supplier Consolidation Opportunities

Many organizations use far more suppliers than they need. This leads to excess administrative burden and fragmented volume discounts.

• Overlapping product categories across vendors.
• Inconsistent delivery performance.
• Missed opportunities for bundled pricing.

• Evaluate your current vendor landscape and consolidate wherever possible. Consider using vendor-managed inventory (VMI) programs and distribution partners who can scale.

4. Compliance and Safety Standards

MRO supplies may seem low risk, but failure to meet compliance standards can result in fines, injuries, or lost certifications.

• Sourcing non-compliant or uncertified products.
• Lack of documentation for audits.
• Mismatched specs that violate site safety standards.

• Standardize compliance requirements across the organization. Ensure vendors provide documentation like MSDS, OSHA, and ISO certifications with every order.

5. Internal Stakeholder Alignment

Even the best sourcing strategy will fail if it doesn't align with the needs and behaviors of internal stakeholders.

• Departments using unauthorized suppliers.
• Resistance to new product specifications.
• Misalignment between procurement, operations, and finance.

• Create cross-functional sourcing teams to develop and enforce standardization. Clearly define procurement goals and KPIs that reflect business-wide priorities.

Final Thoughts: Sourcing Smarter Starts with Looking Deeper

MRO and industrial supply sourcing is often seen as tactical. But it can become a strategic advantage when teams address the underlying inefficiencies most others miss. From TCO and supplier consolidation to compliance and stakeholder alignment, the payoff is measurable in both cost savings and operational uptime.

CenterPoint Group helps procurement leaders take control of MRO and industrial sourcing by providing access to pre-negotiated contracts, deep category expertise, and supplier networks that drive results. Our clients gain visibility, scale, and leverage in a category that is too often ignored.

If your MRO procurement strategies aren't delivering the results you need, CenterPoint Group is here to help you improve performance, reduce costs, and streamline operations. Get in touch to learn how.