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The Value of E-Commerce

Executive Summary

For much of the past year, the promise of Internet-enabled e-commerce to deliver savings seemed just that: a promise. But a new study from Novation and Arthur Anderson goes a long way to finally putting some figures on the value and potential cost savings of a web-based supply chain.

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For Novation's Orthopedics Suppliers, The Internet as Mediator

For a variety of reasons, product companies have responded to the B2B supply chain phenomenon with reserve, wary of high transaction fees and little real benefit. B2B companies, in turn, have teamed up with leading hospital groups to overcome such resistance. But such a strategy only works where suppliers place a high value on GPO contracting. Where group contracting isn't well established, the approach works less well because there's no pull-through for the Internet program. But one group, Novation Inc., is in the early stages of an Internet program that would begin with one of the most challenging of group contracting markets: orthopedic suppliers.

Novation's E-Commerce Play

One of the last of the major hospital groups to commit to an Internet strategy, Novation has leaped into e-commerce with both feet through its recent deal with Neoforma. The company faces a host of challenges, not the least of which come from uncertain hospitals and reluctant product companies. For suppliers, the alliance of leading groups and dot-com companies raises questions about the future of the hospital marketplace.

Outlook 2023: Market Experts On Importance Of Value, Mental Health In A ‘World On Fire’

Competitive value propositions are a must in 2023 to win guarded consumers’ business. Companies that effectively address mental health and wellbeing needs and appeal to consumers through sustainability initiatives could have an edge in the recessionary environment, experts suggest. Meanwhile, there are concerns about small cosmetics companies and the availability of resources to help them comply with "modernized" federal regulations.

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