Owens & Minor (O&M) carried out lean stock services for Virginia Mason (VM) as its alpha supplier, however the out-of-date market prices design produced perverse rewards and might not record O&M's expenses. Together, O&M and VM developed an activity-based rates design called the overall supply chain expenses (TSCC), which incented both business to be more effective and to simplify their distribution activities.
Succeeding the beta checking the TSCC for one year, VM's Daniel Borunda and O&M's Michael Stefanic thought that TSCC was a much better and more economical rates design, however could they encourage their business to continue to purchase TSCC?
Supply Chain Partners Virginia Mason and Owens & Minor (A) (Abridged) case study solution
PUBLICATION DATE: April 14, 2010 PRODUCT #: 110063-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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