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Purchasing talks about MRO buying
Purchasing executives are continuing to slash their supplier base and are forming closer relationships with a smaller number of key suppliers, according to a survey conducted by Purchasing magazine.
In fact, one large diversified manufacturer told Purchasing that only a few years ago each of the company’s 700 business units purchased MRO products on its own. Today, the company has national contracts with 15 distributors, each responsible for a specific product category. “They’re (the company) asking for guaranteed savings, which they expect suppliers to deliver through such non-price aspects of total cost as inventory reduction, product substitution and demand management,” writes Senior Editor Susan Avery.
The study shows that 88 percent say the buying of MRO products is more strategic today than it was five years ago.
To read the entire article, click here.
Purchasing talks about MRO buying
March 14, 2008
Purchasing executives are continuing to slash their supplier base and are forming closer relationships with a smaller number of key suppliers, according to a survey conducted by Purchasing magazine. In fact, one large diversified manufacturer told Purchasing that only a few years ago each of the company’s 700 business units purchased MRO products on its own. Today, the company has national contracts with 15 distributors, each responsible for a specific product category. “They’re (the company) asking for guaranteed savings, which they expect suppliers to deliver through such non-price aspects of total cost as inventory reduction, product substitution and demand management,” writes Senior Editor Susan Avery.
The study shows that 88 percent say the buying of MRO products is more strategic today than it was five years ago.
To read the entire article, click here.
Posted by Jack Keough on March 14, 2008 | Comments (0)
Industries: Executive Management
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