BA 301 Final Term Paper
Table Of Contents
Owens and Minor has proven that they are an exceptional company, having operated since 1882 and maintaining solid earnings throughout their operations. In their most recent years they have had to deal with increasing competition, changes in the U.S. healthcare industry, and the endless need to sustain good relationships with customers and suppliers. Though they continue to succeed in the medical supply distribution industry they have put themselves in a high risk position that if not addressed may make them take a turn for the worse.
With a high reliance on revenues from only four group purchasing organizations Owens and Minor would see a significant loss if they were unable to renegotiate one of their contracts. 24% of their revenues, approximately 2.1 billion dollars, came from sales to hospitals under contract with the group purchasing organizations Broadlane and MedAssets. With their Broadlane and MedAssets contract coming to end this summer they are at risk to lose a big chunk of their sales.
There are a few different solutions that could help Owens and Minor fix this problem and help them lower their future risk. While trying to figure out which option would be best the mission statement had to be considered so that the solution would align with their current mission; “To create consistent value for our customers and supply chain partners that will maximize shareholder value and long-term earnings growth.”
Owens and Minor was formed in 1882 and quickly...