Geoff Marlatt: Manufacturers Have Much to Gain from O&M
Over my many years in the healthcare industry, I have witnessed widespread changes in how patients access healthcare, how providers deliver services, and how manufacturers move their products to market. This evolving landscape is causing all of us in healthcare to adapt. With production and manufacturing now centered in Asia and Latin America, the cost of production has fallen, but the cost to connect these products to the patient has risen.
That's where Owens & Minor comes in. O&M has long provided logistics services to hospitals that go beyond the loading dock and onto the patient floors to serve providers' complex supply chain needs. In recent years, as pricing pressures began to rise and as hospitals began to look for ways to trim costs, the C-suite has turned the spotlight on logistics. These providers, and the manufacturers who serve them, concluded that there had to be a better way. That's where O&M steps in.
We have evolved our offering to provide fully integrated 3PL support to manufacturers serving the healthcare provider community. At O&M, our leadership team made the strategic decision to invest in our infrastructure, network, and information technology systems. In both the U.S. and Europe, we are fully equipped to accommodate the logistics needs of healthcare products manufacturers.
Owens & Minor is bigger than you probably think. With a domestic logistics network capable of reaching more than 90 percent of the U.S. hospital market, the manufacturers who partner with us can leverage our distinct market share advantage and deep channel access. With the addition of a comprehensive network in Europe, our logistics centers and private fleet cover more than 20 countries. Some our manufacturer customers are already using our platforms in both the U.S. and in Europe.
With the investments we have made in our network, we can handle products that are owned by a provider or a manufacturer through a traditional buy-sell distribution model or on a fee-for-service basis. This means that we have unmatched flexibility in the market. We can also scale our solutions to target a specific need or serve a specific geographic region. If a manufacturer wants logistics services in a certain region—say the West Coast of the U.S.—we can accommodate them. If a manufacturer wants help with only a certain product line, we can help.
We know that what really counts for our customers is the bottom line, and we know that the right logistics partner can help manufacturers lower cost while also improving service and margins. Owens & Minor is that partner. Delivery consolidation, pricing accuracy, optimized inventory placement, and visibility into the supply chain are what we do best. O&M is the partner that can enable healthcare manufacturers to deliver on their promises to providers and patients in the healthcare system.