Case | HBS Case Collection | February 2000 (Revised February 2002)

Owens & Minor, Inc. (A)

by V.G. Narayanan and Lisa Brem

Abstract

A forward-thinking manager at Owens & Minor (O&M), a large national medical and surgical distribution company, enlisted the help of both logistics and cost managers to develop an innovative pricing schedule based on the customer's activities instead of the price of the product since the existing cost-plus pricing structure made it impossible for O&M to price services appropriately. The case also explores the customer resistance to his new proposal.

Keywords: Activity Based Costing and Management; Logistics; Distribution; Price; Supply Chain Management; Customer Relationship Management; Medical Devices and Supplies Industry; Distribution Industry;

Citation:

Narayanan, V.G., and Lisa Brem. "Owens & Minor, Inc. (A)." Harvard Business School Case 100-055, February 2000. (Revised February 2002.)