Pareto Principle

A management tool based on writings of Vilfredo Pareto, an Italian economist. The principle is that most of the occurrences of any happening are caused by a small percentage of the population. Applied to purchasing management it means that the largest percentage of cost reductions can be obtained from a small percentage of the items purchased or from a small percentage of the number of suppliers used. Erroneously sometimes referred to as the 80-20 rule.

Source: 

Prokuria logo
LINKS
COMPANY
CONTACT

contact@prokuria.com

Tel: +40 371 066 786

Răsuri, No 8, 2nd District, Bucharest, Romania​