Global MRO Tools market to reach $689Bn: SupplyVan leads the way in the Middle East

Dubai, 13th July 2022: The global MRO market was valued at $610Bn in 2019 and is expected to reach $689Bn by 2025 (Mordor). Middle East’s first and largest single-aisle e-store, predicts that the region will generate 10% of global MRO tool demand. With its unique business model, marketing strategy and tech-enabled management and customer services system, established in 2016, SupplyVan is a remarkable choice for businesses and industries to streamline their MRO products procurement.

MRO stands for Maintenance, Repair and Overhaul and encompasses any and all products that are used in the effective functioning and maintenance of Industries, Factories, Workshops and businesses of all kinds including categories such as Power Tools, Hand Tools, Safety Products, Outdoor Equipment, Hydraulic and Pneumatic Products, Electricals and Lighting, Material Handling, Stationary, etc.

The lack of digitization and rise in demand for MRO products after the relaxation of COVID-19 restrictions makes SupplyVan a reliable ally for every business. According to market analysis, the growth of the manufacturing sector, and other projects (ranging from wastewater projects to infrastructure and hospitality industry) in the GCC is expected to drive the demand for MRO service and tools. With upcoming energy and utility projects in MENA, the demand for MRO products is bound to increase.

“We have grown 4x in the last two years having moved into a new logistics facility near Dubai Airport and are targeting a 300%  Revenue growth this year as compared to 2021. We are constantly working to bring value addition in terms of procurement for our retail and B2B customers with our custom portal and catalog solutions. We source from manufacturers and distributors at lowest prices for original and branded products locally and all over the world combined with quick delivery and great customer support”, says Ali Asgar Raja, Founder of SupplyVan.

Each business needs round-the-clock maintenance, repair and operation to ensure smooth functioning whilst maintaining cost-effectiveness in procurement. After realizing the problems with the traditional MRO products’ supply chain, SupplyVan aims to redefine and reinvent the MRO products market for the industries to meet their production needs. The problems with the existing MRO products’ supply chain are:

• Fragmented Supply Base
• Complex MRO procurement for buyers
• Lack of economies of scale
• Lack of operational and geographical scale to provide proper service
• High pilferage and wastage
• Low tech adoption across the supply chain
• Payment term and cash flow challenges
• Timely Delivery Challenges
• Unreliable supplies

How do Tech-enabled supply chain solutions benefit sellers and buyers?

• Vendor Managed Inventory: Integration of vendor-managed inventory (or VMI) makes the entire process of procurement of MRO products automated which helps in significant simplification of the process. Moreover, automation facilitates in numerous other ways such as:
• Automated ordering: Automation of ordering and issuing consumables allows more control and transparency.
• Built-in User management: This feature enables selective-user access with its built-in user management system. This means that only a selection of personnel would be able to access resources and data and place orders for approval by the department heads or procurement departments.
• Order requisition: Tech-enabled simplification makes it possible to keep tap of all your orders is it a single order or multiple shipments.
• Budget Monitoring: Automating the MRO product procurements also helps in the efficient management of the needs and the inventory. It gives access to a list of all open quotes and where they are in the fulfillment pipeline.
• Order Tracking: The integration allows buyers to have a full list of all previous orders. This helps buyers to look at previous prices, and products and download invoices.
• MIS Reporting: Customization of M/S reports enables buyers to track user-level and product-level consumption.