IDNs Turn Exclusively to TECSYS to Enable Self-Distribution
TECSYS DominatesIDN Industry with Deep Industry-Specific Expertise & Solutions
Montreal, May10, 2011 – Since 2003 TECSYS ’ supply chain execution solutions have been empowering Integrated Delivery Networks (IDNs) of hospitals and clinics with IDN-specific supply chain modeling, software solutions and industry expertise,enablingIDNsto reap millions of dollars in savings,improve service to patients and save lives.As a result, TECSYS has been recognized that “It [TECSYS] has dominant market share, it is highly regarded and is involved in most of the conversations for CSCs (Consolidated Service Centers) forming today.”
The U.S. hospital industry is characterized as having ever increasing costs and reduced cash flow. With supply chain representing the second largest expense after labor costs, their operational and financial management have the urgent need to gain control over their supply chain and achieve efficiency improvements and costs reduction.
In a recent report1 published by Gartner, the world’s leading information technology research and advisory company, entitled“To CSC or Not to CSC…that is the Question for Healthcare Providers”Gartner analysts stated:
• “Many integrated delivery networks (IDNs) are trying to exert more control over their supply chain by developing a consolidated service centers (CSC). Understanding the types of CSCs and the factors to consider, including purpose, scale, talent, executive support and risk, are key to determining whether to pursue.
• The original premise is that cost and service can be done better if a system owns the end-to-end supply chain, from hospital dock to patient bedside and beyond, and makes the supply chain a competitive advantage for the organization. In looking at other industries with $100 million-plus supply chains, most are not served by GPOs and distributors in the way that the healthcare value chain is constructed today. Consolidating control over the various siloed supply chains in pharmacy, medical-surgical and medical device organizations can lead to sustainable and foundational improvements that change the performance culture.
• Many IDNs have succeeded in ways they never thought possible, and have moved from being cost centers to profit centers for the systems. If done correctly, the risks can be mitigated, and a very efficient value chain, with a platform for becoming strategically important to an IDN, can be achieved. Currently, the traditional narrow span of control, as well as the erratically cobbled together view of supply chain, hinders sustainable operations improvement.”
1 Gartner: To CSC or Not to CSC…that is the Question for Healthcare Providersreport by: Eric O’Daffer, HussainMooraj, Publication Date: 18 February 2011.
• According to our prediction, by 2013, the number of operational CSCs in the United States will double to around 40, and represent 15% to 20% of the total healthcare supply market from a revenue perspective (see “Predicts 2011: Complexity Ready to Rattle the Healthcare and Life Sciences Supply Chain).”
TECSYS’ President & CEO Peter Brereton stated: “As the leading provider of supply chain execution solutions to the IDN space, we are pleased to see, for the first time in the history of the industry, someone like Gartnershedding the light on a very real issue in the hospital supply chain arena. Their depiction of the CSC in the IDN space is the most complete and accurate we have seen, particularlytheir position on the adoption and critical success factors. Over the past couple of years or so, the self-distribution model, enabled through the CSC, has become more widely adopted. Hospitals have embraced the model due to the fact that they have experienced success andhavegained real tangible and intangible benefits.Hospital supply network leadership is no longer in a “wait and see” mode, but a substantial number of them are clearly beginning to take concrete steps to address their supply chain challenges to significantly improve their cost structure and service to patients.”
About TECSYS& Healthcare
TECSYS is a leading supply chain management software provider that delivers powerful enterprise distribution, warehouse and transportation logistics software solutions. The company’s customers include more than500 mid-size and Fortune 1000 corporations in healthcare, heavy equipment, third-party logistics, and general wholesale high-volume distribution industries. TECSYS’ shares are listed on the Toronto Stock Exchange under the ticker symbol TCS.
For over fifteen years, TECSYS has been providing distribution and warehouse management solutions to the healthcare industry; these include Fortune 100 manufacturers and distributors, as well as a number of IDNs and third party logistics providers in Canada and the United States. The Company’s product suite for healthcare effectively streamlines business processes that cut across functional areas and consolidates fragmented operations, often replacing multiple legacy systems. As a totally integrated solution suite, TECSYS’ supply chain execution solutions for healthcare speed up the flow of business activity across the enterprise, consolidates information, manages inventory, drives dramatic cost savings, and delivers superior customer service.
The statements in this news release relating to matters that are not historical fact are forward looking statements that are based on management’s beliefs and assumptions. Such statements are not guarantees of future performance and are subject to a number of uncertainties, including but not limited to future economic conditions, the markets that TECSYS Inc. serves, the actions of competitors, major new technological trends, and other factors beyond the control of TECSYS Inc., which could cause actual results to differ materially from such statements. More information about the risks and uncertainties associated with TECSYS Inc.’s business can be found in the MD&A section of the Company’s annual report and annual information form for the fiscal year ended April 30th, 2010. These documents have been filed with the Canadian securities commissions and are available on our website (www.tecsys.com ) and on SEDAR (www.sedar.com ).
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