Virginia Mason Medical Center (VM) hired Owens & Minor (O & M) and alpha provider for medical / surgical supplies in 2004. In 2005, O & M was in the UML and JIT services to VM, but believes the pricing model in the industry has been exceeded. VM and O & M have teamed up to create the total cost of the supply chain program (TSCC) awards, based on the activity that has been attributed to all factors of cost distribution and management of populations of VM model but O & M provides a benefit. The TSCC induced VM to streamline its distribution activities, as they have a direct impact on their fees. After beta testing the TSCC for a year, Daniel Borunda VM and O & M Michael Stefanic think TSCC was a model of better quality and more cost-effective price, but can they convince their companies to continue investing in TSCC?
by
V.G. Narayanan,
Lisa Brem
Source: Harvard Business School
27 pages.
Date Posted: April 15, 2009. Prod #: 109076-PDF-ENG
Members of the supply chain: Virginia Mason and Owens & Minor (A) Case Solution
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