OPENING BELL EVERYONE, TODAY'S
EDITION OF CREATING CONNECTIONS
IS POWERED BY ATNT
BUSINESS INTERNET INDICATED
INTERNET ACCESS THAT ALLOWS US
TO BRING VERTICAL INTEGRATION
AND HEALTHCARE HAS GAINED
TRACTION IN RECENT YEARS AS
HEALTH CARE COMPANIES LOOK TO
REDUCE COSTS ALONG THE SUPPLY
CHAIN BY ONLY MORE OF IT
JOINING US NOW TO DISCUSS THIS
PAUL POWERS WHO IS THE FOUNDER
AND CEO OF
SOFTWARE COMPANY IS NOT ALL
GREAT TO HAVE YOU HERE BEFORE
WE DIVE IN CAN YOU EXPLAIN SOME
OF THE VARIOUS WAYS THAT
COMPANIES APPROACH SUPPLY
CHAINS.
>> IT'S WRAPPED ME GENERALLY
SPEAKING THERE ARE 2 TYPES OF
APPROACHES YOU HAVE VERTICAL
SUPPLY CHAIN WHICH IS WHERE ONE
COMPANY OWNS THE SUPPLIERS THAT
USES AND YOU HAVE FOR US ON A
SUPPLY CHAIN WAS THAT JUST WHEN
THE COMPANY SOURCES PARTS FROM
THIRD-PARTY COMPANY.
>> AND SO CAN YOU GIVE US AN
EXAMPLE OF HOW VERTICAL
INTEGRATION CAN ULTIMATELY
IMPROVE PATIENT EXPERIENCES.
ONE OF THE ADVANTAGES TO A
VERTICAL SUPPLY CHAIN IS THE
POTENTIAL FOR COST SAVINGS SO
IF
DONE RIGHT.
>> A VERTICAL SUPPLY CHAIN CAN
SAVE THE PARENT COMPANY MONEY
AND IF THAT PARENT COMPANY
CHOOSES THAT CAN PASS THOSE
SAVINGS ON TO THE CUSTOMER IN
THIS CASE THAT
THE PATIENT. IT CAN ALSO BE
MORE AWARE OF SUPPLY CHAIN
CONSTRAINTS AND MIGHT HAVE MORE
CONTROL OVER SUPPLIES AND
PROCESSES ALONG THE WAY AS WELL
CERTAINLY AND SO HOW CAN
VERTICALLY INTEGRATIONS HELP
HEALTH
CARE ORGANIZATIONS, BETTER
COMMUNICATE WITH ONE ANOTHER.
INTEGRATIONS CREATE SILOS SO
THERE'S A REAL OPPORTUNITY FOR
IMPROVED COMMUNICATION WITHIN
THAT TIME. BUT LESS SO OUTSIDE
OF IT SO LONG AS YOU'RE WITHIN
ONE SYSTEM THERE IS A GOOD
CHANCE. THE COMMUNICATION
WILL IMPROVE BUT COMMUNICATION
BETWEEN THOSE SILOS BETWEEN THE
SYSTEMS WAS NOT NECESSARILY
POINT TO IMPROVED BECAUSE OF
THE RECALL.
WHAT ARE SOME OF THE
POTENTIAL DOWNFALL. HEALTH CARE
WHEN IT COMES TO VERTICAL
INTEGRATION.
WELL LIKE ANY OTHER INDUSTRY
VERTICAL INTEGRATION CAN REDUCE
FLEXIBILITY.
SO IF ANOTHER COMPANY HAS A
BETTER ALTERNATIVE YOU'RE STILL
PAYING MONEY FOR THE COMPANY
THAT YOU PURCHASED YOU'RE LESS
LIKELY TO SOURCE OF THEIR
ALTERNATIVE OPTIONS AND WITH
MODERN ART MAGIC TECHNOLOGY,
IT'S EASIER TO SOURCE PARTS
FROM WORST FIRES IN A BUS IN
THE PAST THAT MEANS YOU CAN
OFTEN SAVE THE HORIZONTAL
SUPPLY CHAIN JUST AS MUCH AS
YOU COULD WITH A CRITICAL
SUPPLY CHAIN WITHOUT THE RISK
OF ACQUIRING. ANOTHER COMPANY.
>> AND SO WHAT WERE SOME OF THE
PPE PERSONAL PROTECTIVE
EQUIPMENT PERSONAL
PROTECTIVE EQUIPMENT, SUPPLY
CHAIN ISSUES THAT HEALTH CARE
ORGANIZATIONS RAN INTO AMID THE
PANDEMIC.
>> THAT'S ACTUALLY A GREAT
EXAMPLE OF WHERE A VERTICAL
SUPPLY CHAINS CAN FAIL SO MANY
COMPANIES
EXPERIENCED SHORTAGES DURING
THE PANDEMIC AND THE SHORTAGES
WERE LARGELY ARTIFICIAL THE
PARTS THAT THEY NEED TO WE'RE
MOSTLY
OUT THERE. THESE COMPANIES THAT
KNOW WHERE THEY WERE SO THAT'S
WHY IT'S CRUCIAL THAT COMPANIES
ADOPT NEW TECHNOLOGY THAT
ALLOWS THEM TO FIND ALTERNATIVE
PARTS. WELL, THE BEST OF
GEOMETRIC SEARCH FOR GENERAL
PART MATCHING TECHNOLOGY
WITHOUT RELYING ON THE
TRADITIONAL
LANGUAGE BASED APPROACHES THAT
WE'VE USED IN THE PAST HOW DO
YOU THINK THAT
VERTICAL INTEGRATION IF THIS
TREND MAY OR MAY NOT DEVELOP
POST-PANDEMIC.
REALLY LEARNED FROM THE
PANDEMIC WAS THAT THEY CAN'T
RELY ON A SINGLE SUPPLIER FOR
ANY GIVEN PART ANY LONGER.
LUCKILY THERE ARE OPTIONS OUT
THERE YOU'D BE SHOCKED AT HOW
MANY COMPANIES PRODUCE THE
EXACT SAME LITTLE WITH THAT.
BUT THESE ARE HARD TO FIND
BECAUSE YOU HAVE LANGUAGE
BARRIERS FOR ONE AND 2 EVEN
WITHIN THE SAME LANGUAGE WE
HAVE DIFFERENT WAYS OF
DESCRIBING PARTS DIFFERENT
NUMBERING SYSTEMS. SO A TREND
THAT WE'RE ALREADY SEEN WE'RE
GOING TO SEE A LOT MORE OF IS
THE ADOPTION OF A.
I BASED HARTMAN TO TECHNOLOGY.
SO IF YOU CAN SEARCH FOR PART
WITH A PART FOR INSTANCE, THE
LANGUAGE BARRIER NO LONGER
EXISTS AND YOU CAN FIND ALL THE
COMPANIES THAT CAN SUPPLY THAT
PART AND TO PENA.
>> WHAT'S THE PERHAPS
MOST NOTEWORTHY WAY THAT THIS
WOULD SHOW UP FOR THE CONSUMER
EXPERIENCE THAT US EVERYDAY
PEOPLE. WE REALIZE THIS CHANGE
IF IT WAS PUT INTO ACTION.
>> YOU WOULD SEE COST SAVINGS
AND YOU WOULD SEE A RATE
INCREASE IN THE SPEED OF
INNOVATION. AND THOSE ARE 2
THINGS I THINK ABOUT ALL OF US
LOWERING THE COST OF HEALTH
CARE AND
HAVING WATCHED.
>> AND FOR THE CONSOLIDATION
THAT WE'VE SEEN WITHIN THE
BROADER HEALTH CARE SPACE
WEATHER THAT THE ON THE PM'S IN
THE PHARMACY BUSINESS OR
PHARMACY BENEFITS MANAGER AND
ALONG WITH SOME OF THE
INSURANCE COMPANIES. HOW DOES
THAT EITHER ACCELERATE OR SLOW
DOWN SOME OF THIS FOR THE FULL
INTEGRATION.
>> WELL A LOT OF THEM ARE
USING VERTICAL INTEGRATION
BECAUSE THERE ARE ADVANTAGES
FOR THESE COMPANIES AT THE END
OF THE DAY FOR THE
CLINIC CREATIONS ARE MORE
HELPFUL TO THE COMPANY THAT
THEY ARE NECESSARILY THE
CONSUMER THAT COMPANY IS ABLE
TO
PROFIT MORE IF THEY HAVE A
LITTLE MORE CONTROL OVER THE
DIFFERENT COMPONENTS OF THEIR
SERVICES CAN BE HELPFUL TO THE
PATIENT OR
THE CONSUMER. IF THE COMPANY AS
EFFECTIVE IN DOING SO SO THAT
WE'RE ABLE TO LOWER COSTS AS A
RESULT
OF THAT IT TOOK TO MAKE THE
EXPERIENCE MORE STREAMLINED
THAN IT CAN BE HELPFUL BUT IT'S
NOT NECESSARILY ALWAYS A DIRECT
HELP TO THE CONSUMER. CERTAINLY
OKAY WELL.
>> PAUL JOINING US FROM BEAR
CAT NATION OUT THERE IN
CINCINNATI OHIO, THANKS SO MUCH
FOR TAKING THE TIME YOU'RE ON
THE DAY APPRECIATE
IT PAUL FOUNDER AND CEO OF FIZZ
NOW THIS MORNING WITH US
APPRECIATE IT.
ALL RIGHT GUYS AND ATNT
BUSINESS IS HELPING BUSINESSES