For the last few years, hospital systems have been shifting from the distributor model towards a direct approach with manufacturers, while using their storage and distribution channels. With the everchanging health insurance landscape changing, health systems and physician groups have sought out a need to lower costs. Health systems have been finding success in targeting their internal supply chain efficiencies. Outside of the pure cost-benefit that a Consolidated Distribution Center provides, keeping supply and equipment logistics in-house can drastically reduce wait-time and produce a more lean and efficient inventory system.