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Hospital Supply's Vapor Chain

Executive Summary

E-commerce upstart Neoforma is leading a pack of companies trying to make money by helping hospitals to purchase more efficiently via the World Wide Web.

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Burden of Proof

Early efforts to define the opportunity for e-commerce identified the problem--an inefficient hospital supply chain--but failed to prove that e-commerce is necessarily the answer. Now, Novation and Neoforma, a leading hospital group and its e-commerce partner, have released an industry-wide look at Internet-enabled supply chain economics, done by consultants Arthur Andersen, hoping to prove the value to both providers and suppliers of widely implemented e-commerce.

In E-Health, MedAssets Bulks Up

This latest acquisition by e-health's MedAssets underscores how important established players like GPOs are in promoting an Internet-enabled hospital supply chain. In fact, MedAssets was arguably the first major e-health player to recognize that GPOs are not only vital for the base of customers and suppliers they bring, but can also be attractive sources of revenue.

Vamedis: Bringing the Old World into the New Economy

Just when you thought the party's over in Internet-enabled e-commerce, Vamedis is staking a claim for leadership in Europe's B2B supply chain space. Over the past year, the European marketplace hasn't been much friendlier to dot-coms, particularly B2Bs, than the US marketplace has been. But far from a venture-backed start-up, Vamedis is banking on leveraging the entrenched market positions of seven of Europe's leading hospital supply companies.

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