Earlier this year National Medical Logistics and H3Logistics informed you of a potential merger between the two companies.  After much deliberation we would like to announce that a merger is no longer being considered - instead, we will establish a strategic alliance that provides an opportunity for each company to leverage each others' potential expertise. 

 

For NML, this means having potential access to H3Ls non-healthcare industry experience and operational resources to assist with Third Party Logistics [3PL] operations.  Likewise, NML may share its healthcare industry experience with H3L as appropriate. 
NML has the existing capabilities to implement and manage ALL forms of self distribution including 3PL models, but looks forward to the potential of maintaining this alliance opportunity. 

 

National Medical Logistics [NML] was established in 2002 and is an independent healthcare centric supply chain execution company.  With over 70 years of related experience, NMLs services range from establishing and managing strategic trading partner relationships to performing and overseeing day to day tactical supply chain and distribution activities.  NML's business model will continue to focus on offering all healthcare stakeholders a broad range of supply chain consulting and implementation services that includes analyzing, designing and implementing all forms of self distribution models.

 

Earlier this month we conducted a healthcare provider focused webinar presentation that provided some of the fundamental model elements and financial implications of a self distribution operational model.  These well attended sessions [ www.natmedlog.com/webinar1.aspx ] complimented last month's newsletter launching the first of a three part series on self distribution entitled "Defining Self Distribution" [www.natmedlog.com/oct2009.aspx ].  The purpose of that first newsletter was to provide our readers with a basic understanding of what self distribution is and what it isn't; along with a high level overview of the various ownership scenarios. 

 

 

Some market place confusion exists [some of it intentional] with respect to self distribution model objectives.  Specifically, that self distribution encompasses ownership control of both its distribution and supply chain contracting functions.  This is inaccurate. 

 

While it is true that self distribution models will significantly reduce the need to utilize a distributor's products and services, it does not require a change in contracting structure even though it will re-define and elevate your pricing negotiation position.  The associated pricing point improvement opportunities can be managed by your existing contracting department or agent.  For this reason, many providers pursue self distribution without necessarily pursuing self-contracting. 

 

In fact, separate modeling exercises can be performed to show the value proposition of each segment from an individual or collective perspective.  Remember however, that while both strategies are related, this series of articles focuses solely on Self Distribution. 

 

 

This second segment, "Determining Self Distribution Opportunities" begins by

examining several key questions:
·        What are the model's potential benefits?
·        Where do the benefits come from?

Answering these questions will help demystify the model by specifically identifying areas of opportunity and translating model concepts into meaningful and achievable benefits.  To read more click here.