News as Reported by Future Superstock
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NATIONAL HEALTHCARE MANUFACTURING CORP. FORMS STRATEGIC ALLIANCE WITH SYSCO CORPORATION
San Antonio, TX / Winnipeg, MB, August 22, 1997 - National Healthcare
Manufacturing Corporation (NHMC) announced today the formation of an alliance between SYSCO Corporation (NYSE:SYY) and National Healthcare Logistics, LLC, (NHCL), a subsidiary of NHMC, to provide alternatives in supply chain management to hospitals and healthcare systems. This alliance capitalizes on the combination of SYSCO's distribution expertise in NHCL's developed healthcare distribution and information systems techniques. It allows hospitals, integrated healthcare systems and regional health authorities the opportunity to completely outsource medical supplies and other processes, providing a materials management system that it designed to significantly reduce costs while improving services.
Duane Jorgensen, one of the co-founders and President of NHCL, developed a concept called 'Stockless Distribution' in 1983 that allows hospitals to outsource the provision of medical supplies and other logistic processes to a specially-qualified distributor. The 'Stockless Distribution' system evolved into the 'Hub and Spoke' system, an updated version that NHCL believes to be the successor to current conventional medical products distribution techniques. Under the 'Hub and Spoke' method, a local distribution center is established to allow participating hospitals/integrated healthcare systems to outsource more logistical functions than in the past to a 'Hub' that is designed and customized for the hospital/integrated healthcare system. The 'Spokes" are ancillary programs that can be developed around the 'hub,' allowing participating healthcare systems to share costs of such services.
"This alliance between SYSCO and NHCL", said Joe Smith, Chief Executive Officer of NHCL, "marries the capabilities of two organizations dedicated to providing alternatives in supply chain management in order to substantially cut costs and improve service. SYSCO's considerable distribution expertise, when combined with NHCL's distribution technology NHMC's cost effective manufacturing process, should provide the ingredients for a complete and efficient manufacturing, supply management logistics and distribution delivery system."
"We believe healthcare industry trends are leading hospitals toward new alternatives," Mr. Jorgensen commented. "We can help hospitals
re-engineer their internal processes to mesh with SYSCO's distribution
'Hub.' With SYSCO operating the 'Hub,' this new partnership is designed to provide the necessary infrastructure and expertise for NHCL to create systems that have the critical mass necessary to gain economies of scale and benefit substantially from fully integrated services."
Mac Shahsavar, Chairman of NHCL and President & CEO of HNMC said,
"This strategic partnership will provide the conduit for our Company and its subsidiaries to market their entire product lines directly to
healthcare institutions in the United States. It will also allow NHCL
to introduce this program to Canadian Regional Healthcare Systems. I
also anticipate to utilize our robotic packaging technology in each 'Hub & Spoke' center to further reduce costs to hospitals." SYSCO is the largest marketer and distributor of food and related products in North America. Generating over $14 billion in annual sales, SYSCO supplies more than 26,000 restaurants, hotels, schools, and business and industry locations. It also provides food and medical/surgical supplies to both the acute and long-term healthcare industries. The company's distribution network currently extends throughout the entire continental United States and Alaska, as well as parts of Canada.
NHMC owns and operates the worlds first and only automated robotic
production facility capable of assembling and packaging various kits and trays for medical and surgical procedures. Use of this proprietary technology enables NHMC to produce these medical devices efficiently, cost effectively, quickly and accurately, thus providing an edge over its competition who currently uses manual labor. Also through its wholly owned subsidiaries, NHMC manufactures and distributes personal care and anti-microbial products to healthcare and homecare institutions throughout North America and Europe.
Neither NASDAQ nor the VSE have reviewed or accept responsibility for
the accuracy of this release.
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