The MRO Pricing Mystery
Published January 4, 2012
Manufacturers of MRO products that sell via distributors produce products and arrive at their standard cost of goods. They then follow varying pricing policies to these authorized distributors. For example, there are different list prices for different markets, i.e. the Automotive-After-Market has a different listing than the Industrial Distributor that markets to Industry. Discounts exist […]Read Full Post
Live Debate: To Outsource or not to Outsource?
Published December 17, 2011
To outsource or not to outsource? SSI’s George Krauter debated that question in a live debate at MyPurchasingCenter.com. George discussed the advantages of outsourcing MRO industrial supply to drive down costs and drive up quality and performance. Watch a recording of the debate at MyPurchasingCenter.com (registration required).Read Full Post
Outsourcing: Opportunity for Career Development
Published December 1, 2011
Recently I was asked to participate in a webinar about outsourcing non-core functions vs. keeping these activities in-house. There is no question that outsourcing of functions that are not within a company’s area of expertise is critical in a down economy. The manager of the webinar cautioned me to be careful not to cause fear […]Read Full Post
Conflict of Disciplines: A Case Study
Published November 7, 2011
A large manufacturing facility is operated profitably by Bob, the Plant Manager. Indirect Materials – MRO – account for just 7% of the total plant spend and 80% of Bob’s headaches. Plant personnel were running out of parts all too frequently, causing a plethora of emergency orders and excessive freight costs. Downtime as a result […]Read Full Post
Cui Bono…To Whom Are Benefits Awarded?
Published October 14, 2011
Cui bono, a Latin phrase, can be translated into “Who gets credit for MRO process improvement?” Cui bono is one of the major deterrents to improvement programs in the world of MRO distribution. Note that the MRO supply chain is not just manufacturer to master distributor to local distributor to the dock of the MRO […]Read Full Post