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cost savings

Cost savings reported to our customers in 2007...
Over $2,750,000.00!

what is "Total cost"?

Typically, we find the “Total Cost” for MRO exceeds the unit price by 30%!

Example: MRO purchases of $2,000,000

Inventory cost	=14%	$280,000
Direct Personnel	=10%	$200,000
Purchasing/Acct.	= 5%	$100,000
Freight	= 3%	$ 60,000
Receiving	= 2%	$ 40,000
Shrinkage/Dead Stock	= 2%	$ 40,000

TOTAL Cost	= 36%	$2,720,000

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