Question: You may want to first evaluate the costs of the current distribution systems and a direct-to hospital supply chain in the following areas: storage; fulfillment; customer service; transportation and warehouse handling; Besides costs what other factors should be taken into consideration as part of the analysis?

1. What value do VARs provide in the healthcare supply chain?

2. Does it make sense for 3M to eliminate VARs and increase its logistics organization?

3. Why are hopsitals pressuring 3M to adopt a direct distribution model?

4. Should 3M hire a third party logistics provider (3PL) to handle its distribution.

5. How does 3M's distribution network help position the company against competition?