SA’s Rail Industry Requires a Strategic Focus on MRO for Growth

By De Wet Joubert, Operations and Strategic Projects Director, RS South Africa

As rail companies seek to enhance cost efficiencies, implementing a robust strategy for both planned and unplanned maintenance is crucial to improving the bottom line. This is especially important in South Africa, where the Passenger Rail Agency of South Africa (PRASA) has indicated that the full recovery of national commuter rail services is a top priority.

The White Paper on National Rail Policy, an overarching framework to guide the vision for the future of the railway industry in South Africa, was approved in 2022. As an affordable, competitive, effective, integrated, reliable, safe, sustainable, and valued transport mode, rail is expected to provide the backbone of South Africa’s freight logistics and passenger mobility systems by 2050.

This will have a major impact on economic growth and social Development. However, a key focus to achieve this vision is to ensure adequate spend on Maintenance, Repair, and Operations (MRO). MRO has two distinct categories, namely planned maintenance and unplanned maintenance.

Planned maintenance

When it comes to planned maintenance, the secret is in the quality of the planning. A clear maintenance schedule should be established well in advance, allowing downtime to be scheduled in a way that minimises inconvenience for passengers. This foresight enables engineers and procurement teams to order necessary parts from trusted suppliers ahead of time, securing the best prices and the required product quality.

Focusing solely on price when purchasing parts for planned maintenance can be a false economy. Constant pressure to achieve greater productivity, can sometimes foster short-term thinking. Spending excessive time trying to save a few rands by purchasing from non-approved suppliers often overlooks the longer-term costs. The extra time spent on finding lower prices and navigating slower approval processes can ultimately cost the business more.

It is much more effective to have a small number of approved suppliers that consolidate a selection of products, ideally utilising an eProcurement system to expedite the purchasing process. This approach ensures engineers receive the products they need promptly, reduces time spent on procurement, and allows the procurement department to track purchases efficiently.

Prioritising unplanned maintenance

Unplanned maintenance demands a different approach, where the focus shifts to stock availability and rapid delivery to mitigate potential fines for equipment downtime. With unplanned maintenance, it is vital to have suppliers that offer a wide range of stock and can deliver quickly. At RS, we maintain a comprehensive stock range and work closely with our suppliers and customers to ensure critical parts are delivered as swiftly as possible.

Many companies stockpile parts internally for self-distribution. While holding critical parts on hand is sometimes necessary, large suppliers like RS can often provide next-day delivery, outpacing internal distribution. This practice not only accelerates the availability of parts but also reduces the costs associated with storing unused inventory.

Strategic partnerships for operational excellence

By partnering with reliable suppliers and leveraging efficient procurement processes, rail companies can significantly reduce downtime and operational costs. The strategic balance between planned and unplanned maintenance, supported by a robust supply chain, is essential for sustaining efficiency and service quality in the rail industry.

RS has the expertise and access to the latest products and premium brands to allow for proactive maintenance strategies that add to socioeconomic development and assist to realise the government’s long-term vision for the rail industry. A strategic supplier partnership with RS allows rail companies to avoid disruptions, enhance operational efficiency, and ultimately boost profitability.

For more information about RS South Africa’s initiatives and product range, visit their website and follow them on LinkedIn for regular updates on their impactful work.

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Author: Thobile Ndlovu from NGAGE on behalf of RS South Africa.

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