Arauco Selects IHS for MRO Catalog Optimization Services and Software for MRO Catalog Management

IHS (NYSE: IHS), the leading global source of information and analysis, today announced it has been selected by Arauco, a global leader in sustainable forest products, to standardize and enrich the company’s maintenance, repair and operations (MRO) materials catalog and implement new catalog management software.

In order to deliver on its commitment to innovation, excellence and industrial efficiency, Arauco realized that it would need to build a multi-language global catalog and implement best-practices to improve its overall MRO supply chain performance. After conducting comprehensive research and in-depth analysis of potential alternatives, Arauco concluded that the IHS Standard Modifier Dictionary™, having been used to process more than 50 million material records for more than 2,500 plants in 34 countries, was the right standard for their global standardization project. 

“IHS understands the level of complexity inherent in this kind of initiative, and we’ve helped hundreds of organizations around the world increase their production capacity while realizing up to a 25 percent reduction in procurement, maintenance and inventory costs,” said Bert Turner, IHS vice president, insight. “We are looking forward to working with Arauco to provide the guidance, solutions and support it needs to accomplish its MRO supply chain performance management goals.”

Asset-intensive organizations like Arauco manage tens of thousands of items, including spare parts, materials, chemicals, equipment and supplies, kept in stock to keep their plants and facilities up and running. This MRO inventory can represent as much as 15 percent of procurement spend and 75 percent of purchase requisitions. IHS Intermat helps optimize MRO spending through catalog standardization and inventory optimization.

IHS Intermat helps companies optimize their indirect materials/MRO inventory by:
• Cleansing, standardizing and enriching MRO item descriptions
• Managing item descriptions on an ongoing basis, either by providing catalog management software or via its catalog maintenance services
• Adjusting inventory order points, order quantities and lead times

“It’s critical that we continually seek out new ways to better manage our MRO spend, while increasing production reliability, and maximizing the value of our investment,” said Arauco Pulp Division Administration Director Carlos Altimiras. 

Arauco Pulp Division Supply Chain & Warehouse Manager Roberto Verdugo added: “We are confident that IHS has the experience, technology and personnel necessary to help us navigate this important project.”

For more information about IHS Intermat and other MRO management solutions, visit www.ihs.com/MRO.

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About IHS (www.ihs.com)
IHS (NYSE: IHS) is the leading source of information and insight in critical areas that shape today’s business landscape, including energy and power; design and supply chain; defense, risk and security; environmental, health and safety (EHS) and sustainability; country and industry forecasting; and commodities, pricing and cost. Businesses and governments around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS employs more than 5,100 people in more than 30 countries around the world.

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