Healthcare Coalition Launches Phase Two of Industry Product Data Synchronization Initiative.

Business/Technology Editors

WEST SPRINGFIELD, Mass.--(BUSINESS WIRE)--Jan. 8, 2002

Pilot program Involving 3M, Defense Supply Center Philadelphia, Owens & Minor and Allegiance Validates Need for Industry-Wide Product

Data Management; Profile Systems Selected As Content Management

Provider; SAIC Provides Project Coordination

The second phase of the Health Care EDI Coalition's Collaborative Supply Chain Automation Project (COStCAP) for the medical/surgical industry has been launched, after a successful "data synchronization" pilot program involving the Defense Supply Center Philadelphia (DSCP), 3M, Owens & Minor and Allegiance. Technology and services from Science Applications International Corporation (SAIC) and Profile Systems were utilized to facilitate the pilot.

With an estimated $14 billion spent annually correcting data disparities within the health care industry supply chain, the goals of COStCAP are to synchronize electronic product data throughout the industry's supply chain, from each manufacturer through to the hospital bed side.

"Product data disparity is a systemic problem within the health care supply chain that significantly drives up costs and can often directly impact patient care when the right products don't get to where they need to be," says Garren Hagemeier, HEDIC's Executive Director. "With our military now in an active combat situation, we all understand just how critical it is to solve this problem quickly."

At the heart of COStCAP is the establishment of an industry-wide product data utility that will synchronize product and packaging information based on a standardized Product Data Synchronization Template. The template is a tool that defines how data is to be presented and shared, including trading partner information, product data components and attributes (e.g. item numbers, classification codes, units of measure and usage, product descriptions, etc.).

The completed first phase of COStCAP was a pilot program coordinated and managed by SAIC that involved the analysis and synchronization of 3M product data with the DSCP, and key suppliers, Owens & Minor and Allegiance. The next "benchmarking" phase will involve additional product manufacturers, distributors and Group Purchasing Organizations (GPO's) with whom the DSCP does business. The end goal is a single federal/commercial repository of medical-surgical item product data - which will improve patient care and streamline efficiencies throughout the medical/surgical supply chain resulting in billions of dollars of savings.

Data validation, matching and synchronization tools and services are being provided by Profile Systems, a West Springfield, MA-based provider of B2B ecommerce software and solutions. The company's MasterDepot(R) web-based product data management solution will serve as the COStCAP product data utility database. Companies participating in the project will follow a multi-step synchronization process, involving data evaluation in conformance with established standards, product ID matching, UPN and UN/SPSC Coding, and Pack Level Data Field Analysis.

"Providing supply chain participants with access to universal, standardized electronic product information must be the foundation upon which electronic commerce is built," says John Clarke, Vice President, Supply Chain Solutions at SAIC. "The federal government has the opportunity to save over $1 billion annually simply by having a clearer understanding of what medical/surgical products it is purchasing and leveraging its purchasing volume. Indeed, the benefits to all supply chain participants are clear, including improved order management, accurate contracting, invoicing and PO's, asset visibility and consumption tracking."

The benchmarking phase of COStCAP is expected to be completed by April, 2002. For more information about COStCAP, contact HEDIC at www.hedic.org or by calling 1-800-905-4583.

About Health Care EDI Coalition (HEDIC)

The Healthcare EDI Coalition is an industry-wide association of electronic trading partners who work together to expand and improve the electronic data infrastructure across the healthcare marketplace. HEDIC was organized in 1991 by 33 major provider groups to facilitate collaborative implementation of electronic standards across the industry. For more information, visit www.hedic.org or call 1-800-905-4583.

About Defense Supply Center Philadelphia (DSCP)

The Defense Supply Center Philadelphia is an Inventory Control Point within the Defense Logistics Agency. DSCP annually provides over $5.46 billion worth of food, clothing, textiles, medicines, medical equipment, general and industrial supplies and services to America's warfighters, their eligible dependents and other non-Defense Department customers worldwide. For more information visit, http://www.dscp.dla.mil

About Science Applications International Corporation (SAIC)

SAIC is a Fortune 500 company and the nation's largest employee-owned research and engineering firm. We provide information technology, systems integration and eBusiness products and services to commercial and government customers. SAIC engineers and scientists work to solve complex technical problems in telecommunications, national security, health care, transportation, energy, the environment and financial services. More information about SAIC and its subsidiaries can be found at www.saic.com.

About Profile Systems

Based in West Springfield, Massachusetts, Profile Systems is a privately held developer of product data and supply chain management solutions for business-to-business electronic commerce. Founded in 1994, the company's products include MasterDepot(R) product data management and synchronization solution and ProSAIM(R) Supplier Assisted Inventory Management software for automating replenishment. The company's customers include Johnson Controls, Dana Automotive, Osram-Sylvania, Hubbell Incorporated and The Stanley Works among others. For more information, visit the Profile Systems web site - www.profilesystems.com or call 413-737-2000