The 20% Solution: A Practical Guide to Dramatic Cost Reduction in MROP Procurement - Hard Cover
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A Practical Guide at the Nuts-and-Bolts Level
Many companies are faced with increased operating costs and fewer sustainable competitive advantages. Those who find new approaches achieve a sustainable competitive advantage as well as higher profitability. Why is this relevant to a book on MROP procurement? First, because this is a function long-neglected as an opportunity area for innovation. Second, for many enterprises it is their suppliers who become a major source of innovative solutions.
Joel Roth wrote this book out of frustration - the frustration expressed to him by countless purchasing and other professionals who "can't get their arms around the MRO problem." MRO procurement offers a substantial untapped opportunity for improvements in cash flow, cost reduction and other key elements of operations without investment, risk or substantial workload.
In almost every instance in his work with companies on this issue, the identified savings in MRO has been more than 35 percent of current expenditures. The purpose of this book is to show you how to unlock savings in your or your customers' organizations, regardless of budget constraints or staff limitations and without significant risk or investment. The book includes actual examples of MRO cost analyses and cost reductions, drawn from hundreds of diverse organizations.
Table of Contents
- What is MRO Procurement?
- Prerequisites for Success
- Database Construction and Maintenance
- Partnering Your Way to Success
- Saving Hard Dollars
- Saving Soft Dollars
- Selling the Program
- Documenting Savings
- A Top Management View
- Typical MRO Product Categories
- Worksheets for Documenting MRO Cost Savings
- Letter from Major Automotive Builder to Suppliers
- Letter from Supplier to Customer Describing Range of Value-Added Services & Findings of MRO Survey
About the Author
Joel L. Roth has spent over 50 years in a business career that is extremely diversified. He holds bachelor's degrees in engineering and operations research from Case Institute of Technology (now Case Western Reserve University). He holds an MBA in Accounting and Industrial Management from New York University. He also pursued the doctoral program at NYU in Marketing and Economics.
He has owned 10 industrial distribution companies, and has worked on procurement problems and issues in hundreds of organizations, ranging from motion pictures to pulp and paper, from military procurement to metalworking. He is a former member of NAPM, a member of Affiliated Distributors and a member of the Industrial Supply Association.
His career began with Procter & Gamble. He worked in general management consulting for many years, serving clients in purchasing logistics and materials management. He subsequently became a principal of Ernst & Ernst (Now Ernst & Young) in their Management Advisory Services Division.
Roth left E&E to join Gulf & Western Industries as a Senior vice president with operating and planning responsibilities covering G&W's 160 subsidiaries, divisions and affiliates worldwide.