Procurement Glossary
Purchasing policy MRO vs. Capex: Strategic procurement management
November 19, 2025
Purchasing guidelines for MRO (maintenance, repair, operations) and Capex (capital expenditures) form the strategic foundation for efficient procurement management in companies. These specialized guidelines define different processes, approval procedures, and evaluation criteria for operational consumables on the one hand and capital goods on the other. Find out below how MRO and Capex procurement differ, which methods are used, and how you can optimally structure your purchasing processes.
Key Facts
- MRO procurement focuses on operational consumables with lower individual values and frequent ordering cycles.
- Procurement capital goods with high values, long useful lives, and complex approval procedures.
- Different evaluation criteria: MRO prioritizes availability and cost efficiency, while Capex focuses on ROI and strategic fit.
- Separate approval processes with different decision-making levels and documentation requirements
- Digital procurement platforms enable automated workflows for both categories.
Contents
Definition: MRO vs. Capex purchasing policy
Purchasing guidelines for MRO and Capex structure procurement according to different requirements and objectives.
Fundamentals of MRO procurement
Procurement all operational materials for maintenance, repair, and operations. This category is characterized by the following features:
- Low to medium individual values (typically under 10,000 euros)
- High order frequency and short procurement cycles
- Focus on availability and delivery reliability
- Standardized purchasing processes with low approval barriers
Characteristics of Capex procurement
Procurement capital goods with long-term strategic significance. Characteristic features are:
- High individual values (usually over €10,000)
- Long service life and depreciation cycles
- Complex evaluation and approval procedures
- Strategic focus on corporate goals
Importance in modern Procurement
The clear distinction between MRO and Capex policies enables a targeted procurement strategy. While MRO processes focus on efficiency and automation, Capex decisions require comprehensive analysis and strategic evaluation.
Methods and procedures
The implementation of differentiated purchasing guidelines requires specific methods for both procurement categories.
MRO procurement methods
Operational procurement relies on standardization and automation. Proven approaches include:
- E-procurement systems with catalog integration
- Framework agreements for recurring requirements
- Decentralized ordering authorization with defined limits
- Supplier consolidation to reduce costs
Capex valuation method
Investment decisions follow structured evaluation processes. Key methods include:
- Business case development with ROI calculation
- Multi-criteria assessment of technical and economic factors
- Multi-stage approval procedures based on investment amount
- Market analyses and technology assessments
Integrated control approaches
Modern companies combine both approaches in a holistic purchasing organization. This allows them to leverage common synergies while still taking specific requirements into account.
Tacto Intelligence
Combines deep procurement knowledge with the most powerful AI agents for strong Procurement.
Key figures for controlling
Differentiated KPI systems enable targeted management of MRO and capex procurement.
MRO performance indicators
Operational procurement is managed using efficiency and service indicators:
- Average order processing time (target: less than 24 hours)
- Delivery reliability rate of MRO suppliers (target: over 98%)
- Processing costs per order (benchmark: less than 50 euros)
- Maverick buying rate (target value: below 5%)
Capex control indicators
Investment procurement focused on value creation and strategic goal achievement:
- Return on investment of completed projects
- Budget compliance for Capex projects (target: ±5% deviation)
- Time to value of new investments
- Strategic goal achievement through Capex measures
Overarching control variables
Integrated dashboards connect both areas and enable a holistic assessment of procurement performance. Benchmarking analyses identify optimization potential in both categories.
Risk factors and controls in purchasing policies
Different procurement categories involve specific risks that must be minimized through appropriate control mechanisms.
MRO-specific risks
Operational procurement is susceptible to process risks and cost drivers:
- Maverick buying through decentralized procurement
- Excess inventory due to uncoordinated orders
- Delivery failures for critical operating resources
- Compliance violations in simplified processes
Capex investment risks
Investment decisions involve long-term strategic risks. Critical factors include:
- Technological obsolescence with long usage cycles
- Budget overruns due to incomplete planning
- Strategic misjudgments with high sunk costs
- Regulatory changes during the useful life
Integrated risk control
Effective compliance systems combine preventive and reactive measures. Regular audits and continuous monitoring ensure compliance with defined standards in both areas of procurement.
.avif)
Practical example
A mechanical engineering company implements differentiated purchasing guidelines for MRO and Capex procurement. For MRO materials under €5,000, automated e-procurement workflows with direct supplier connection are introduced. Maintenance teams can order independently from catalogs, while the system automatically monitors framework agreements and budget limits. For Capex investments above €25,000, a multi-stage approval process with business case evaluation, technical review, and management approval is in place.
- MRO order time reduced from 3 days to 2 hours
- Capex decision quality improves through structured evaluation
- Compliance rate reaches 99% through automated controls
Current developments and effects
Digitalization and sustainability are significantly shaping the further development of MRO and Capex guidelines.
Digital transformation of procurement
Artificial intelligence is revolutionizing both areas of procurement. AI systems enable:
- Automated demand forecasts for MRO materials
- Intelligent supplier selection based on historical data
- Predictive analytics for capex investment decisions
- Automated compliance checks
Sustainability-oriented procurement
ESG criteria are gaining importance in both categories. Companies are integrating sustainability aspects into their policies by:
- Lifecycle assessments for capex investments
- Sustainability certifications for MRO suppliers
- CO2 footprint analyses in decision-making processes
Agile procurement models
Agile approaches enable more flexible responses to market changes. Iterative planning cycles and modular investment strategies are implemented, particularly for capex projects.
Conclusion
Differentiated purchasing guidelines for MRO and Capex form the foundation of efficient and strategically aligned procurement. While MRO processes rely on automation and operational excellence, Capex decisions require structured evaluation procedures and strategic foresight. The successful implementation of both approaches in an integrated purchasing organization maximizes both operational efficiency and long-term value creation.
FAQ
What is the fundamental difference between MRO and Capex purchasing policies?
MRO guidelines focus on operational efficiency for recurring, low-value procurements with standardized processes. Capex guidelines, on the other hand, govern strategic investment decisions with complex evaluation procedures, multi-level approvals, and long-term value creation considerations.
What value limits typically apply to categorization?
The threshold varies depending on the size of the company, but is usually between €5,000 and €10,000. MRO procurements remain below this threshold and are handled operationally, while capex investments above it must undergo strategic evaluation and approval processes.
How are approval procedures structured in both categories?
MRO approvals are usually automated or carried out by direct supervisors with defined budget limits. Capex procedures involve multi-stage reviews by specialist departments, controlling, and management, depending on the investment amount and strategic importance of the procurement.
What role does digitalization play in implementation?
Digital platforms enable the automated handling of MRO processes through catalog integration and workflow automation. For capex procurement, they support structured evaluation procedures, document management, and approval workflows with complete traceability of all decision steps.
.png)
.png)
.png)
