A ground breaking chief at Owens & Minor (O&M), an extensive national restorative and surgical dispersion organization, enrolled the assistance of both logistics and expense administrators to add to a creative estimating timetable in light of the client's exercises rather than the cost of the item since the current expense in addition to evaluating structure made it incomprehensible for O&M to value benefits suitably. The case likewise investigates the client imperviousness to his new proposition.
What are the services rendered by the distributor to manufacturers and hospitals?
How has the nature of distribution changed over time?
What is the value added by O&M?
Evaluate the impact of cost-plus pricing has on distributors, customers and suppliers.
What effect will ABP have on customer behavior?
Explain Exhibit 5. How does price matrix work?
How does the cost in Exhibit 5 correspond to the costs shown in the customer profitability statement in Exhibit 4?
Why doesn’t the matrix comprise all the costs shown in Exhibit 4?
What are the obstacles to the successful implementation of ABP at Ideal? How would you address these obstacles?
What type of customers will adopt ABP first?
How difficult or easy is it for O&M’s rivals to adopt ABP?