Essay on O&M Case Summary

Submitted By isure4ever
Words: 549
Pages: 3
Open Document
O&M Case Summary

Owens & Minor, Inc. is a distributor of medical and surgical supplies. The company uses a pricing system which is called “cost-plus”. The cost-plus means a basic production cost plus the shipping price that marked by distributors. This pricing system is also used among in the whole industry. As a medical and surgical supplies, its customers are hospitals. Ideal Health System is a not-for-profit hospital. It is also the big customer for O&M. As the time passed by and society developed, distributors get more and more requirements from their customer. O&M realized that the cost-plus system cannot calculate their costs accurately. The company wants to adopt a new pricing system which is called activity-based cost/price system.

The challenge for O&M in this case is that how to convince the Ideal health group to use the ABC system. The issue is that ABC system is a totally new system for the whole industry. No one had heard it before, and no one is familiar to use it. Although, the Ideal group is interested in the ABC proposal that provided by the O&M company, it has to consider carefully about the cost and risk of changing. The case mentioned that if Ideal adopts the ABC system, it has to “change the way they purchased, stored, and used supplies. Ideal would have to eliminate personnel, equipment, and warehousing space.

In fact, the ABC system is beneficial to all manufacturers, distributors and customers. For manufacturers, ABC can help them to know what kind of products or services that customers really need. For distributors like O&M, it is a good way to maintain an awesome customer relationship by delivering the customers’ actual needs and high quality services with lowest price. O&M can also calculate their costs accurately in order to get profits. However, there are still some risks for O&M to use the ABC system: the labor costs may increase because they may need more labors; the inventory costs might goes up since the distributor should guarantee that they have enough products to meet the customers’
Show More

Related Documents: Essay on O&M Case Summary

A Guide For A Guide To The Purdue University

Formatting Assignments ............................................................................. 5 II. Written Communication ....................................................................................................... 6 A. Executive Summary ................................................................................................... 6 I. Purpose: ................................................................................................................ 6 II. Content: ....…

Words 7376 - Pages 30

Charlotte Beers at Ogilvy & Mather Worldwide Essay

Executive Summary Charlotte Beers has a vision; however, she cannot convey this message personally to the whole Ogilvy & Mather organization (O&M). Appointed CEO after a hostile takeover, Beers was faced with the challenge of uniting a multinational, autonomous corporation under her concept of Brand Stewardship. David Ogilvy founded the company, that later merged with Mather & Crowther, which became one of the leading advertising agencies. O&M had offices worldwide, focusing on local as well…

Words 1283 - Pages 6

Paper

Processes of a case study methodology for postgraduate research in marketing Chad Perry Processes of a case study methodology 7 85 U n ive rsi ty of Sou the r n Q ueensl a nd, Toowoomba , A ust r a l i a Introduction C a s e s t u d i e s a re f a m i l i a r t o m a rke t i n g e d u c a t o r s a n d t h e i r s t u d e n t s a s a teaching device. For example, the Harvard Business School’s cases are widely used to allow students to be emotionally involved and le ar n action-related…

Words 13840 - Pages 56

Attitudes To Careers In Tourism Essay

a number of different points of view. S o m e of these have been well explored over a relatively long period. For example, the employment creation effects of tourism, and education and training for tourism have been documented since the mid-1960s. ',2 Similarly, although starting from a rather later date, there is now a substantial literature about the nature and characteristics of tourism employment and careers. Mathieson and WalP provide an early summary. One area which has received much less attention…

Words 6911 - Pages 28

vLab SB Week4 Essay

report. You will send the lab report to your online instructor for evaluation after you quit the lab. Submit the following screenshots to your online instructor for evaluation: 1) A screenshot of NYEDGE2’s routing table once you have disabled auto-summary on NYEDGE1. These screenshots map to the evaluation criteria. Therefore, submit all screenshots to get the points assigned to all evaluation criteria. Lab Diagram During your session you will have access to the following lab configuration. Depending…

Words 1875 - Pages 8

PaperCut Case Study St

Case Study - Education PaperCut MF Tames Escalating Printing Budget St Martin’s School St Martin’s School (Caerphilly, UK) couldn’t keep on top of its printing and copying budget. Despite budgetary increases each year, costs continually outstripped budget – usually with several months of the financial year left to run. PaperCut MF let administrators first track usage and then assign realistic quotas for staff and students. St. Martin’s School is a coeducational comprehensive school for almost 1…

Words 832 - Pages 4

Reliance Baking Soda Case Study Essay

_IN T E R O F F IC E M E M O R A N D UM TO: DR. MICHAEL PREIS – VICE PRESIDENT OF HUTCH CORPORATIONS FROM: MAXIMILIAN PAHN – SENIOR CONSULTANT SUBJECT: EXECUTIVE SUMMARY DATE: 02/10/2013 Executive Summary: 1) Since Hutch Corporations is targeting the lower-middle, middle-income range and no specific ethnic group, the two possible locations Dalton and Hinesville seem to be the good match for a new store according to Exhibit 2. Hutch´s target market of women between the…

Words 980 - Pages 4

Summary Of Basic C-Commandss

Summary of basic C++-commands Compiling To compile a C++-program, you can use either g++ or c++. g++ -o executable filename.out sourcefilename.cc c++ -o executable filename.out sourcefilename.cc For the following commands you can find at the end of this summary sample programs. Each command in C++ is followed by “;” . Carriage return has no meaning in C++. Comments Essential for the writing of clear programs are comments, which are explanations for your program, and which are ignored by the compiler…

Words 724 - Pages 3

The Content of Global Marketing Essay

9.3 Video case study: understanding entry modes into the Chinese market Questions for discussion References 315 319 319 320 320 321 327 327 329 332 333 333 10 Export modes Learning objectives 10.1 Introduction 10.2 Indirect export modes 10.3 Direct export modes 10.4 Cooperative export modes/export marketing groups 10.5 Summary Case studies 10.1 Lysholm Linie Aquavit: international marketing…

Words 2492 - Pages 10

The Role of Selling Price Essays

E LSEVIER C omponent versus Bundle Pricing The Role of Selling Price Deviations from Price Expectations A jit Kaicker PATHFINDERS,INC., NEW DELHI, INDIA William O. Bearden UNIVERSITY OF SOUTH CAROLINA Kenneth C. Manning GONZAGA UNIVERSITY The objective of this article was to investigate the effects of discrepancies between price expectations and selling prices on consumer preference for purchasing products priced separately or together. Five gain~loss conditions (i.e., multiple…

Words 6792 - Pages 28