NDC’s rebranding initiative reinforces its big view of supply chain
NDC’s rebranding initiative is more than a new look…though it is, indeed, that. And it’s more than a new name (“NDC” rather than “National Distribution & Contracting”), though it is that, too.
The real key to NDC’s initiative – launched this summer – lies in its new tagline: “Delivering Efficiency to Healthcare.” That’s because “efficiency” is a necessity in today’s healthcare environment, says NDC President and CEO Mark Seitz. NDC intends to provide that efficiency not only to its traditional distributor members, but to all key constituencies in healthcare today – distributors, manufacturers, GPOs, and by extension, healthcare providers.
“We recognized that the forces in the industry that are driving changes on all levels are impacting NDC,” says Seitz. “We decided as an organization that we wanted to have a hand on the tiller of our own destiny, as opposed to just reacting to changes. Like many in the industry, we struggled to identify the scope of these changes and to understand how significantly they would impact NDC and independent distribution. In late 2012, we concluded the best way to protect NDC and our responsibility to distribution was to start from the ground up with a new strategic plan.”
“An integral part of that strategic plan was NDC’s rebranding initiative,” adds Natalie Martin, NDC’s in-house creative services manager, who played a key role in the strategic planning process. “We needed a new look to convey our renewed commitment to our independent distributors and our expanded supply chain solutions to the industry.”
Says Seitz, “When we made the decision to rebrand, I knew we had to keep it inside the organization to achieve the desired result of a new, clean look for the company and a tagline that spoke to our value as a supply chain partner. Natalie and her team were responsible for taking this new vision for the company and translating it into a complete rebranding of our organization.”
“We wanted to speak in the language of today’s healthcare environment, specifically, of healthcare reform.” Martin says. “We believe that our tagline does that, and that our logo suggests the sophistication of our supply chain abilities – carrying forward a portion of our legacy globe to pay tribute to our rich heritage. This initiative cornerstones a new brand platform that will allow us to better communicate our value proposition.”
Redefining ‘customer’
As part of its repositioning, NDC has added manufacturers and GPOs to “customer” status. And it’s not a superficial change, according to Seitz and Martin. NDC is transforming itself from a master distributor – providing downstream services for distributors – to a healthcare supply chain company providing customized solutions to all players in the supply chain.
“Historically, distributors were our customers,” says Seitz. “Nothing has changed there. We’ve added resources and rededicated ourselves to serving independent distribution.” For example, on the day that Seitz spoke with Repertoire, he was helping one member in support of a bid for the incontinence business of a larger payer.
“We support any distributor who asks us,” he says. And that support can be influential. “Think how compelling it is for a distributor with a distribution center in, say, Detroit, to respond in an RFP, ‘If anything were to happen to our distribution center, we have additional centers in Sparks, Nevada, and La Vergne, Tennessee, to ensure that our supply chain is secure,” he says.
“We concluded that our responsibility was to stay relevant to the supply chain. To continue to deliver value to distribution, you have to maintain a certain size and scope. Minimizing our relationships with manufacturers and GPOs would cripple the full value we can deliver to our distributor partners.”
Big view of supply chain
Taking a big view of supply chain isn’t totally new to NDC. For example, the company has operated as a third-party-logistics provider for manufacturers for years, says Seitz. “But that’s only one facet of what we do. Every 3PL provider offers supply chain solutions. But we are comfortable in the healthcare supply chain, which has unique considerations, such as cleanliness and timeliness. And we have a group of loyal customers, many of which have been our business partners for over 60 years. As a manufacturer, we can help you grow sales if you use NDC as a conduit. We have 312 members and we ship to over 1,400 different distribution centers.”
NDC’s capability to provide “any product, any unit of measure, anywhere, anytime” on behalf of a manufacturer speaks to its competency as a supply chain partner, Seitz continues. “We ship full-container-loads every day, as well as boxes containing product in low-unit-of-measure directly to a doctor’s office with our distributor’s name on the label and their marketing material inside.”
Similarly, NDC has plenty to offer GPOs, and is stepping up its offerings as it has with manufacturers. NDC’s traditional GPO strategy – spearheaded by Vice President of Business Development Dave Rose – has been to make GPO contracting available to independent distributors that otherwise could not obtain it. “That strategy continues, but it is expanding, and it is vital to our success,” says Seitz.
GPOs recognize that NDC provides a valuable platform in the alternate site market, he says. At press time, NDC was close to launching an affiliate GPO exclusively for independent distributors. “There are unique relationships between NDC and our GPO partners, the purpose of which is to protect the competitive position of our distribution customers at the account level,” he says.
“We are finally aggregating the volume of independent distributors and trying to gain the same competitive edge that any GPO provides,” he says. “Independents need it. We are the logical ones to develop it.
“So we are embracing our GPO partnerships and piloting a variety of unique initiatives. As a result, we will protect the position of all independent distributors – especially those that aren’t large enough to garner this kind of support from the GPOs on their own.”
Responding to challenging environment
“This is a challenging environment,” says Seitz. As small businesses and employers, many NDC customers are adjusting to the provisions of the Affordable Care Act. What’s more, they are adjusting their business strategies to help their customers navigate changes in reimbursement, such as outcomes-based reimbursement and patient satisfaction.
“There was a bit of a siege mentality we all shared for a couple of years, but together we have come out of that,” he says. “Much like NDC, our members are diversifying their markets and delivery models, and embracing their business partners. They are allowing us to partner with them to provide warehousing, to provide emergency supplies, and to provide security to their piece of the supply chain.
“We don’t have our head in the sand,” Seitz continues. “That’s not what’s going on here. Challenges exist in the marketplace. Some – such as consolidation at the provider level – are irreversible. But what is consistent is the way independent distributors have responded. Our distribution customers are adapting, surviving and growing.” Recent successes among the NDC network reflect the continuing good health of its members.
“Independents with strength in leadership are really doing well. We beat the ‘doom and gloom’ drum for awhile. But that’s not where the NDC distributor is today. Now they’re asking, ‘What other changes do we need to make in order to succeed?’” And they are making those changes. For example, some NDC members have brought on RNs to work with customers on value analysis. Others are acting as general contractors, providing turnkey services for customers opening up surgery centers and other alternate site facilities.
“Our primary responsibility has been and will always be to the independent distributor,” says Martin. “NDC will continue to build its peer-to-peer initiative, encouraging members to share strategies and successes with other members. That’s one of the benefits of partnering in the NDC supply chain.”
“There is no doubt that the challenges for all are substantial,” says Seitz. “Consolidation with inevitable fallout continues. But we have seen alumni from some of the national players spin off their own companies. Metaphorically, these acorns are rapidly growing into oak trees.
“It’s easy to conclude that all is lost; that there’s no hope. You can develop a pretty compelling case for that if you want. But you don’t have to choose that fate. NDC’s network of distributors has reinforced that there is tremendous, tremendous opportunity — if you’re willing to work hard and provide thoughtful leadership.
“There is a lot that is new about NDC; but the legacy of providing help to independent distribution when needed most remains. These changes are designed to ensure that legacy continues.”