Owens & Minor
), leading supplier of healthcare products, recently announced
the offering of GHX WebDirect2 web-to-electronic data interchange
(EDI) solution to its small- to mid-sized healthcare suppliers.
This underlines the company's concerted efforts to enhance
efficiency and reduce costs in the domestic healthcare supply
The GHX WebDirect2 portal is a cost effective solution
comparable to manual ordering procedures. It aims to assist
smaller suppliers to extend their trading network without any
major investment in equipment, technology and support staff. The
GHX Exchange platform of the WebDirect2 portal allows suppliers
to engage in electronic transactions. Even suppliers with limited
or no e-commerce competency can gain as the portal offers an
accurate and streamlined procure-to-pay process. Owens &
Minor is thereby scheduled to improve its EDI order volume.
The portal should enhance the scale and scope of the company's
business with small to mid-sized suppliers. As medical device
makers cope with margin pressure due to sustained pricing
headwinds, the cost effective solution offered by Owens &
Minor should reduce higher processing expenses of manual orders
towards the achievement of greater order accuracy. Also,
substantial goodwill enhancement seems to be on the cards for
Owens & Minor with this venture amongst smaller
Headquartered in Richmond, Virginia, Owens & Minor is a
Fortune 500 company which administers healthcare supply-chain
management solutions. We currently have a long-term 'Neutral'
recommendation on the stock which carries a short-term Zacks #3
The company continues to offer differentiated solutions and
expand its core business processes to meet the needs of the
healthcare industry. With the Movianto buyout, the company has
found a feasible route to European market entry. Tuck-in
acquisitions along with innovative solutions should fuel growth
in the years ahead.
However, Owens & Minor continues to rely on select
customers for a major share of its revenues. It also depends on
group purchasing organizations to seek significant contracts.
Additionally, the company faces a tough competitive landscape
with peers like
CARDINAL HEALTH (CAH): Free Stock Analysis
MCKESSON CORP (MCK): Free Stock Analysis
OWENS & MINOR (OMI): Free Stock Analysis
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