Published May 14, 2013
Read the full blog post at FoodManufacturing.com
There are maintenance, repair and operations (MRO) surveys that show that “quick response and product knowledge” combine for over 75 percent of what was important to plant management; price is less than 8 percent of the consideration and fulfillment programs just 3 percent.
Most company managers say that service and knowledge outranks price when, in the real world of MRO, price is dominant because the discipline placing the order is purchasing. The job of purchasing is to buy it cheaper. “What is your price and delivery?” is the first question. “I need a quote” and “Can you quote?” are phrases that open negotiations. Don’t forget the infamous Market Basket Quote that is hugely expensive and inconclusive in vendor selection; why do it if it is only 8 percent of the consideration?