The healthcare industry significantly lags behind other industries in productivity gains. Comparatively, health services have only improved productivity 0.4% where U.S. manufacturing has achieved gains of 3.9%. This gap is widening at the same time as profit pressures increase, with healthcare providers needing to replace $12 billion in earnings by accelerating the speed by which they adapt to this rapidly changing marketplace. Owens & Minor has identified $150 billion of costs that our manufacturers and provider partners face due to complexity and pain points in their supply chain.
The market demands innovative solutions when it comes to delivering products to the point of care and Owens & Minor is addressing those demands with a set of “white glove” solutions. These point of care solutions streamline product flow and provide inventory visibility that result in savings for both our manufacturer and provider customers. The visibility and accountability inside the hospital truly separate us from our competitors.
Higher Sales-to-Inventory Ratio
Our Point of Care Solutions take the burden of supply chain activities from the manufacturer's sales representatives, resulting in greater sales activity and productivity. Owens & Minor will aggregate disparate inventory, across many locations, into our network of market based distribution centers. These locations are within 4 hours of 90% of United States hospitals and consist of 200,000 m² in warehouse storage capacity throughout Europe and 7 million square feet of storage in the United States. Owens & Minor's experience in delivering in these local markets, which spans over a century, has established our resource position within hospitals. Our highly efficient inventory controls allow for better tracking of instruments and serialized implants which result in increased turns and a reduction in the working capital required to serve the provider.
Delivery to the Point of Care
Owens & Minor's Point of Care Solutions consolidate deliveries all the way to the point of care and enhances patient safety and regulatory compliance by providing our customers with a secure chain of custody with PPI products. The speed and accuracy of our deliveries are due, in part, to our ability to provide efficiencies and visibility of inventory demands. Efficiencies that directly benefit the bottom line include a reduction in number of deliveries and delivery processing, increased accuracy of information, and enhanced demand planning. Overall, a closer relationship between PPI manufacturers and Owens & Minor creates a reduction in time spent by hospital resources in supply chain and other savings opportunities.