In the typical organization, the procurement of maintenance,
repair, operating and production supplies (MROP) represents only
about 20% of the total spending for materials, but consumes about
80% of the time, effort and expense involved in the purchasing
process. For many reasons, detailed in this book, very few
organizations have properly analyzed and identified improvement
potentials in MROP procurement beyond getting price quotes. The
Author's experience with hundreds of entities over 50 years has
demonstrated that cost savings in excess of 35% of MROP spending
are obtainable without significant investment or risk. Applied to
the estimated annual spend of $450 billion to $500 billion in the
U.S. for MROP products, this equates to an astounding potential
cost savings of $150 billion or more across the American economy.
The 20% Solution shows in easy-to-absorb detail how to analyze,
identify and obtain these savings within your organization. This
book is written for those individuals responsible for indirect
materials procurement in for-profit and non-profit entities, their
suppliers, students and faculty of business and industrial
technology and others seeking dramatic cost reduction opportunities
in an often overlooked function.
General
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