Supply Chain Partners: Virginia Mason and Owens & Minor (A) (Abridged) Harvard Case Solution & Analysis

Owens & Minor (O & M) services performed lean inventory for Virginia Mason (VM), as its alpha-vendor, but outdated pricing model industry has created perverse incentives, and could not capture the cost O & M'S. At O & M and VM created activity-based pricing model is called the total cost of the supply chain (TSCC), which incented both companies to be more efficient and streamline their distribution activities. After beta testing the TSCC one year, VM Daniel Borunda and O & M Michael Stefanic believed that TSCC was better and more cost-effective pricing model, but they could convince their companies to invest in TSCC? "Hide
on VG Narayanan, Lisa Brem Source: Harvard Business School 17 pages. Publication date: April 14, 2010. Prod. #: 110063-PDF-ENG

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