Cost Saving Strategies in Household MRO’s Businesses all have different goals, some are simply trying to make a profit; others are trying to make an impact in their environment. However, the bottom line is that they all need revenue to continue to operate. This revenue is used for all sorts of things from manufacturing, procurement, employee wages and so forth but there is one area that most people do not fully realize and that is the day to day cost of maintenance, repair and operations (MRO). In simple terms MRO is basically the things that are needed to keep the company running from toilet paper and cleaning products to things needed to perform repairs on their machines. However this situation is very similar to how households are run since as in businesses things break down, food runs out, and floors need to be kept clean. Using strategies that global businesses use to help keep their MRO’s in check are also important strategies for households to consider. One of the most important techniques that business’s use is to understand how they spend their revenue. They use what is called spend analysis to gather information about where and how their money is going and from this they can utilize some risk management skills to help alleviate some poor spending habits. A great example of this is to help control maverick buying which is unauthorized buying decisions (Avery, 2009). In a household this also holds true. Typically there is the nuclear family setting where two parents collaborate on household needs. However, more often than not one or both of the parents (sometimes children or family members) will buy things without the others knowledge. A good spend analysis will help to showcase the damage this trend can lead to and how proper budgeting can actually benefit communication of funds. This leads into spend
