Supply Chain Dive
To combat issues within their supply chains, some hospitals take on a model of self-distribution, bypassing third party distributors to work directly with the suppliers of essential equipment and supplies. While this approach of connecting to manufacturers without a distribution company includes large upfront costs (particularly in transportation), it can also yield tremendous savings in the long run.
Hospitals using the self-distribution model are able to store and manage their inventory on site, negotiate discounts from suppliers, and get around requirements from distributors that may lead to extraneous waste.
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