MRO Cost Reduction

Corporate Recovery / Turnaround

Best-in-class cost structures define the companies dominating the MRO marketplace. Participants in high labor cost geographies need to achieve best-in-class productivity and cost efficiency in order to remain competitive, while rising labor costs in low labor cost geographies is placing increasing pressure to retain their cost advantages. All participants in this highly-competitive sector are lean, but the Seabury Group has a depth of experience that enables us to find additional ways to streamline operations and reduce expenses. Our unparalleled industry knowledge also helps us anticipate factors that could impact implementation, enabling clients to move deftly and achieve desired results with a speed not otherwise possible.

Key services are:

Procurement

Excessive supply chain costs are common to the MRO industry, weighing on overall financial performance. Seabury can significantly reduce the burden, analyzing the total price of supply chain decisions, including accounting costs that MROs may be unaware of. Our recommendations for new supply chain and inventory management approaches have created substantial value for airline and MRO clients, who have also frequently engaged us to implement our suggestions. Seabury overhauled one MRO’s entire supply chain organization; we’ve helped other clients outsource the management of their consumables and expendables and rationalize the cost and distribution of parts.

Contract negotiations

Seabury’s strong analytical approach brings additional insight to clients as they conduct negotiations. We show how contract provisions might affect the organization over time, provide negotiation tactics that benefit the bottom-line and, to ensure the best result for clients, frequently assist in the negotiation process. Seabury has extensive experience on both the MRO and airline sides of the negotiating table, and can apply this experience to help MRO’s become more effective at negotiating and winning customer contracts.