Six strategic disrupters that have changed the distribution business

Health Industry Today, Oct, 1997

* Migrating customers: Bill McCleave says that many customers have left their longtime distribution partners for a variety of reasons. Columbia/HCA, for example, took away millions of dollars of hospital distribution business when it began forming a few years ago. Integrated delivery networks do the same thing. In addition, physicians have joined purchasing groups and clinics are doing different things in terms of distribution.

* Mega-competition: The mega-competition factor is a good news/bad news proposition for distributors. Even smaller distributors who find quick, creative solutions can make money. And all the while, the big distributors keep getting bigger ... and more efficient.

* Worldwide logistics: Worldwide logistics offer opportunity for the capability to ship medical products quickly all over the world thanks to increasing use of the Internet.

* Channel restructuring: Many manufacturers use different distributors, providing more opportunity for smaller distributors.

* Credit redesign: Credit card companies allow faster payment.

* Information technology: The impact of the Internet on sales will be major, and has yet to be felt fully, McCleave says.