Tecsys: Warehouse Management Systems, Healthcare & SaaS Transition

This is a snippet of the transcript, sign up to read more.

I concur. Perhaps we could revisit the topic of alliances later. For now, let's focus on the market in general. How do you perceive the healthcare system market in terms of IT competency? What do you believe are the main forces driving technology adoption in this sector?

Other industries have been practicing direct purchasing and private labeling for years, but healthcare is only just catching up. Tecsys has provided healthcare systems with the opportunity to self-distribute, essentially cutting out the middlemen, known as global purchasing organizations or distributors, such as McKesson, Owens & Minor, and Cardinal.

This is a snippet of the transcript, sign up to read more.

I concur. Perhaps we could revisit the topic of alliances later. For now, let's focus on the market in general. How do you perceive the healthcare system market in terms of IT competency? What do you believe are the main forces driving technology adoption in this sector?

While Tecsys may be seen as a threat by these organizations, they are evolving to become more flexible and useful to health systems. However, many health systems still rely solely on distributors like Owens & Minor, which is not an efficient way to manage a supply chain, as the pandemic has clearly shown. The shift in healthcare has been towards direct sourcing from suppliers, having alternative sources, and ensuring substitutions for essential items in primary care.

This is a snippet of the transcript, sign up to read more.

Regarding health system operators, how many still rely on a single source, and how many have multiple sources? What percentage of the market has Tecsys penetrated? Could you provide a rough estimate?

Most sizable organizations lean towards a hybrid model where they've outsourced their warehouse operations but are no longer single-sourced. For instance, Owens & Minor might manage a warehouse, but they're handling products that you've purchased directly, or from GPOs, or even from other health systems with a better supply chain.

This is a snippet of the transcript, sign up to read more.