KOREASCHOLAR

Companies incur costs in the care of indirect equipment used in production, that is, in maintenance, repair, and operation (MRO) of equipment. However, MRO can waste manpower and time, so that many companies engage MRO companies as substitutes. In the past, MRO substitution companies have conferred advantages that allowed companies to cut prices. As a result of those savings, companies were more likely to purchase high value items. But as prices drop and companies have more varied requests, MRO substitution companies must find new strategies to stay competitive. This research is an effort to escape the exhaustive adherence to price-cutting methods, and instead find ways to maintain continuous relations with customers through price benefits and services. First, product groups must adhere to purchase deadlines. Although logistics centers originally operated and managed deliveries, some items were too large to be delivered. To solve the problem, groups should contract with delivery companies to assure smooth delivery despite problems. Also, delivery companies could supplement computing processes by delivering original documents such as quality certificates between company and customer. Second, companies should communicate with customers regarding the maintenance of current prices, provision of additional service if current prices change, and to find problems and improvements regarding current operations that need to be addressed. The research shows that MRO purchasing companies should focus on customer needs rather than only on price if they are to satisfy customers and accomplish continuous growth.

• Byeong Heon Ku(Changwon National University)