Quick Background Suture / Endo = (12% + approx.) of total MedSurg Spend Suture / Endo is a PPI ******* Many specialty codes and kits. Large volume of ever changing SKU’s, new products A challenge to manage day to day at the system, account and distributor level. Until 2000 – Enter Suture Express !!

Rapid Conversion #1 Moved from multiple distributors to Suture Express 72 Hospitals and 116 “ship to” locations 2 main manufacturers (Ethicon and Covidien) S.E. focused on: – Inventory Availability – all codes – S.E. – follows manufacturer SKU code – Accurate pricing SKU by SKU – “Complete Orders Tomorrow” – Stock & NonStock – Site by site pricing – Readily available contact – Focus Focus Focus “Like moving a Battle Ship”…………

Rapid Conversion #2 Moved from one Manufacturer to the other Still had -72 Hospitals and 116 “ship to” locations S.E. focused on: – Inventory Availability – all codes – No backorders, drop ships, hassles… – Product returns – no hassle – S.E. follows manufacturer SKU codes – Accurate pricing SKU by SKU – Complete Orders Tomorrow – Stock & Non Stock – Site by site pricing – with pricing notifications – Automatic “pre approved” product subs – Readily available contact for questions – Focus Focus Focus “Like moving a 116 PT Boats”…………

Key Performance Indicators Stock and Non Stock fill ratio’s – “off the chart” Correct and timely pricing notification Correct and timely product confirmations No “shortages” No “phantom back orders” No product minimums No required turn ratio’s Easy return process Knowledgeable customer service reps – LIVE. The effect is HUGE – A.R., MM, OR team & MD’s

Key Performance Indicators 1. Contract Compliance S.E. follows user’s contract pricing 3 way price matching (Ascension + S.E. + GPO) 2. Pricing Compliance Simple cost (+) distribution model Total visibility to manufacture price + distribution fee S.E. lives on top of manufacturer contracts 1 day contract pricing load Immediate customer notification 3. Next day receipt of all items… Simple next day FedEx delivery Reliable and consistent

Benefits to Customer Reduced inventory –Fewer inventory locations –Less stock on hand Daily Shipments if desired Optimized inventory turns –Fast or slow movers identified –Stagnant inventory identified Accurate use history –Excellent operational reports available from Suture Express –Customized reporting if requested

Key Elements necessary to undergo a rapid conversion. Open and Honest Communication High Expectations – with daily measurable results Focus Focus Focus