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The document summarizes a case presentation about Owens & Minor (O&M), a medical supply distributor facing rising costs and falling profits. O&M is evaluating moving from a traditional "cost-plus pricing" model to an activity-based costing (ABC) and activity-based pricing (ABP) model to increase efficiency and reduce overhead. A large hospital group, Ideal, is putting its supply contract out to bid, presenting an opportunity for O&M. Adopting the new pricing model could help O&M underbid competitors to win the contract, but convincing Ideal of the benefits and implementing changes would be challenging. The case presentation addresses questions about cost drivers, alternative pricing methods, effects of
The document summarizes a case presentation about Owens & Minor (O&M), a medical supply distributor facing rising costs and falling profits. O&M is evaluating moving from a traditional "cost…