The 20% Solution: A Practical Guide To Dramatic Cost Reduction In Mrop Procurement
Author: Joel Roth
Release Date: March 31, 2008
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.