Industry veteran Joel Roth looks at how organizations buy supplies for MROP in a recently published book, The 20% Solution: A Practical Guide to Dramatic Cost Reduction in MROP Procurement. Roth says that in most organizations, raw materials, purchased components, capital goods and packaging materials represent 75%-85% of total dollars spent on physical goods. And MROP represents about 15%-25%.
The characteristics of MRO buying are different from other types of goods, he says -requiring entirely different methods of analysis, sourcing, negotiating, stocking and tracking and an entirely different cost structure.
Why did he write a book on the subject? The procurement of maintenance, repair, operating and production supplies accounts for 20% of total …
Author: MROP Cost Savings Opportunities Often Overlooked by Purchasing Community
Industry veteran Joel Roth looks at how organizations buy supplies for MROP in a recently published book, The 20% Solution: A Practical Guide to Dramatic Cost Reduction in MROP Procurement. Roth says that in most organizations, raw materials, purchased components, capital goods and packaging materials represent 75%-85% of total dollars spent on physical goods. And MROP represents about 15%-25%.
The characteristics of MRO buying are different from other types of goods, he says -requiring entirely different methods of analysis, sourcing, negotiating, stocking and tracking and an entirely different cost structure.
Why did he write a book on the subject? The procurement of maintenance, repair, operating and production supplies accounts for 20% of total …
Share this article
Log In
Read the latest articles and see your reports.
Popular Now
MDM Directories
Sign Up for the MDM Update Newsletter
The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.
