OR Manager - February 2019 - 13

OR business
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GPOs aren't likely to fade away, however.
" GPOs still provide purchasing
power, " Palcich says. Jones notes that
GPO contracts provide the ability to purchase
one or only a few of a particular
item, without paying a higher price. She
sees the possibility of GPOs turning to
Amazon for items that are easy to ship
to save money. She adds that GPOs
and vendor contracts come with services
unlikely to be available through
Amazon, such as training and presentations
to value analysis teams.
" If you look at where the GPO is
today, it's about more than just sourcing, "
Downey says. " GPOs are doing
more performance improvement, training,
and support, and some are running
customers' supply chains. " He adds
that GPOs are looking at the intersection
of cost, quality, and market performance
as they help hospitals with clinical
improvement and market growth.
Considering the future
Downey considers Amazon a disruptor.
Like Kowalski, he thinks Amazon will
need to determine which products are
best for it to handle. " When you think
of all the complexities of healthcare
supply chain, there are a lot of controls, "
he says. " The industry has built
that into place, and Amazon is learning
its way. "
Vendor sourcing, product storage
and transport, and pricing (compared
with traditional sources) will be key factors
for Amazon to address as the company
strives to deepen its impact in the
surgical supply chain. Given the company's
history, however, it's likely Amazon
is in the market to stay. ✥
Cynthia Saver, MS, RN, is president of
CLS Development, Inc, Columbia, Maryland,
which provides editorial services to
healthcare publications.
12
OR Manager | February 2019
Can Amazon
meet compliance
requirements
for healthcare
products?
References
GHX. GHX supply chain leaders survey
finds healthcare industry targeting
data-driven improvements
in 2018. https://www.ghx.com/
news-releases/2018/ghx-supplychain-leaders-survey-finds-healthcare-industry-targeting-data-drivenimprovements-in-2018/.
Kacik
A. Amazon primed to streamline
healthcare supply chain. Modern
Healthcare. 2018. https://
www.modernhealthcare.com/article/20180929/NEWS/180929919
Kacik
A. Hospitals have an unrealized
$25.4 billion supply chain opportunity.
Modern Healthcare. 2018.
https://www.modernhealthcare.
com/article/20181018/TRANSFORMATION02/181019894/hospitals-have-an-unrealized-25-4-billionsupply-chain-opportunity.
Palcich
M. A hospital story: Going Amazon,
Pt. 1. J Healthcare Contracting.
2018. http://www.jhconline.com/ahospital-story-going-amazon-pt-1.html
Pifer
R. Amazon Business' medical
supply chain ambitions: 4 things
to know. Healthcare Dive. 2018.
https://www.healthcaredive.com/
news/amazon-business-medicalsupply-chain-ambitions-4-things-toknow/526985/.
Reaction
Data. Amazon as a medical
supplier. Executive summary. 2018.
https://www.reactiondata.com/
wp-content/uploads/2018/05/
ReactionDataAmazonAsMedicalSupplier.pdf.
Schneller
E. 2018 healthcare supply
chain trends/issues. Healthcare
Purchasing News. 2018. https://
www.hpnonline.com/2018-healthcare-supply-chain-trends-issues/.
www.ormanager.com

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OR Manager - February 2019

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