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American Hospital Supply Corporation case study-Nikhil

American Hospital Supply Corporation case study-Nikhil

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Published by surojitsaha15094
American Hospital Supply Corporation case study
American Hospital Supply Corporation case study

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Categories:Business/Law
Published by: surojitsaha15094 on Feb 27, 2012
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A Case Study onAmerican Hospital Supply CorporationGiven Information: The AHSC was founded in 1922 by Foster G McGaw theorganization was in health care sector which was into manufacturing of all thehealth care products extending from surgical equipments ,Surgical drapes andgowns ,gloves, syringes and other items and instruments ,chemical reagents andother products and services for biomedical and other laboratories .AHSC had a salesof $3.5billion and net earnings of $238 million .Virtually all of the 7500 short termgeneral hospital in US bought at least some of their supplies from AHSC onlinepurchasing system. AHSC had the market share of almost 30 % and was able to manage the salesgrowth of 13% almost every year from 1978 to 83.The two third sales of AHSC camefrom laborites and international business accounted for 10 % of the sales .They hadthe 150 distribution channels worldwide and the manufacturing items were madefrom 46% sales and 83 % of net profits.Earlier the products were sold through field sales people who worked from homesand called directly on hospitals and other organizations.In early 1960 the AHSC initiated the online system for its customer to place orders,earlier west coast offices began having difficulty servicing a large hospital customer.Orders were frequently delivered late and incomplete, creating problems for boththe customer and AHSC .And finally the new order entry system,with mainframecomputer support was called Analytic systems automatic purchasing ( ASAP) Waslaunched.And finally a series of launch for AHSC of ASAP1, 2,3,4,5 which has its own benefitsto the customers and finally to the sales force. The sales force was able toconcentrate more on product selling than processing the order.Objectives: Following were the objectives of the company1)To provide customer with the ease of order placement2)To Carefully understand the customer needs3)To Retain customers4)To improve on delivery period
 
5)To improve upon delivery cycle and time6)To gain control over inventory system7)To understand the competitors well8)Better touch points of the customers3) Assumption 1) The organization after successful implementation of ASAP is inProfit2) The customer are satisfied with the service of the organization4) Analysis The analysis requires detailed write-upLets discuss some questionsQ1) How much competitive advantage can IT give wrt this caseAns IT has lot of competitive in today’s world because it helps in understating thecustomer in a better way ,it helps in making customer satisfied, it helps in customerretention in better way ,further it helps in managing and controlling inventory ,itreduces inventory cost and help organization to monitor the same.It helps in order management, delivery process and makes the operations smoothQ2) How can competition find opportunities for such usages of ITAns Competition can use this in a more effective way for example cost feedanalysis, Data Analysis, Evaluating competition etcQ3) what could be done IT related competition advantage sustainableIT has lot of competitive in today’s world because it helps in understating thecustomer in a better way ,it helps in making customer satisfied, it helps in customerretention in better way ,further it helps in managing and controlling inventory ,itreduces inventory cost and help organization to monitor the same.Q4) How is AHSC and customer impacted by ASAP?
 
Ans Let’s talk about Customer benefitsa)Ease of placing ordersb)Better Delivery timec)Transparency in priced)Ease in order executione)Delivery statusf)Payments detailsLet’s talk about AHSCa)More Businessb)Better Inventory Managementc)Customer Retentiond)New Customer accusatione)Touch in with supplierf)Better order and delivery system5) Observation-It has been observed that AHSC saw potentially large changescoming in the ordering and use of supplies .Hospital were banding tighter intochains and voluntary buying groups, increasing their leverage and sophistication.Alternate care sites such as physicians’ offices, surgical and emergency centersand nursing homes kept much smaller inventories than did hospitals and tended tostock relatively low cost items.6) Conclusion: After going through the case study, we come to the conclusion thatimplementation ASAP will proof helpful not only for the customer but also for theAmerican Hospital Supply Corporation as been discussed in the case earlier.

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