AMERICAN

HOSPITAL SUPPLY
CORPORATION:
THE ASAP SYSTEM
Group: 8

Value derived from ASAP to AHSC over

time
ASAP
Stage
ASAP

Value
Addition

Features

1. Checking of item number ordered

against its availability
2. Recommendation for substitutes incase
of unavailability of item

ASAP 2

1. Electronic Inter-Communication between

between AHSC, sales representatives
and customers

ASAP 3
and 3+

1. Hospitals own internal stock number

were linked, allowing customer orders
using them
2. Incorporation of bar-code scanning

Centralization of
data and
processes

Reduction in
order processing
time

Improved order
accuracy,
Faster
processing,
Effective
Material
Management
Elimination
of
Manual Steps,
more manpower
for Sales

ASAP 4

1. Computer to computer order system

2. Approved orders transmitted over phone
connection

ASAP 5

1. Menu added with Help option

2. Tutorial to guide the customer

More Customer
friendly

Implementation Challenges faced

by AHSC
The customer didnt get a
printed response for the
order he placed
One way communication in
both ASAP and Tel-American

Adoption of the Bell 43

terminal as a standard input
& output device

ASAP 3 didnt actually

manage the hospitals
inventory
Hospitals had to be
technologically sophisticated
for ASAP 4 to be useful for
them
ASAP 4 was not designed for
emergency orders

ASAP 3 Plus incorporated

bar code scanning to
facilitate order entry

ASAP 5 needed to work on

IBM PC

ASAP 2 allowed message to be

transmitted among AHSC, sales
reps and customers

AHSCs
RESPON
SE

It was assumed that this

issue would be resolved by
itself with time
ASAP 5 sought to resolve
this issue for AHSC
A program to convert ASAP
to IBM Hardware was being

Sustainability of the competitive advantage from ASAP

ASAP had the following edge over its competitors:

Head-start of 2 years over its competitors
Difficult initial response by competitors
Requires computerizing their inventories
Feedback Oriented System
The System Review board met 4-6 times
annually with key users
High switching cost for existing customers
Tough to shift existing inventory database

Sustainability of the competitive

advantage from ASAP (contd.)
However,
Dynamic external environment- implies level playing field
demand to increase slowly than the past
customers to exert more choice
emergence of alternate care sites- less dependence on
such systems
Competitors were becoming increasingly responsive
Customers could easily switch to a system with lower cost
Therefore, AHSC needs to take measures to stay ahead
of the competition