Self Distribution Provides Single Ship Point for Manufacturers and Consolidated Ordering for Providers
Inside ROi's 100,000-square-foot Consolidated Services Center (CSC) in Springfield, MO more than 5,000 SKUs of medical supplies and pharmaceuticals are managed and passed through to Mercy's network of hospitals and clinics across four states.
"The CSC provides all of the capabilities of a commercial distributor but differentiates itself in many ways," explains Justin Davison, Admin. Director, Materials Management for St. John's Health System in Springfield. Davison oversees the supply chain for six hospitals, two ambulatory surgery centers and 70 physician clinics in southwest Missouri and northern Arkansas. "A major benefit for me is that I can place a single order with a single distributor without having to access multiple accounts, place multiple orders and manage multiple relationships."
He adds, "The hospitals I serve receive a consolidated shipment from one location. Plus, ROi also owns a private fleet, which provides a higher level of control and efficiency with the distribution channel and transportation synced together."
As a provider-owned distributor, ROi specializes in health care for providers versus attempting to meet the diverse needs of multiple industries. "This is important to me because they customize to the special needs of a provider," explains Davison. "They are not distributing to a broad segment of customers. ROi can provide to the unit of measure, patient charge stickering, departmental sorts and lot segregation."
The CSC's location enables daily delivery with next day turnaround times for stocked items at industry leading fill rates to Mercy hospitals and clinics. "I value the ability to order daily and receive daily deliveries," adds Davison.
For manufacturers, the CSC provides a single ship point for a consolidated shipment of larger quantities. "Manufacturers can use one invoice rather than having to ship to different Mercy locations, which saves costs," says Davison.