Implementation of Responsible Supply Chain Management within the Healthcare Sector

Post on 17-May-2015

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Presentation that focuses on how to implement Responsible Supply Chain Management within the Corporate Social Responsibility Context in the Healthcare Sector. The presentation showed how Dr. Soliman Hospital in Jeddah implemented CSR and responsibility concept within its supply chain.

Transcript of Implementation of Responsible Supply Chain Management within the Healthcare Sector

Dr. Sherif Tehemar BDS/DDS, MSC, PhD, FACOMS, CSSGB

CSR Committee Chairman/ Dental Consultant & Director

Ethical Business

Environment

Community

Rights

Customers

Employee

Equitable and practicable balance between the commercial imperative of continuing doing business and the ethical demands.

Focus on sustainability and CSR, and the company needs to decide where its efforts are best employed.

Supplies are the second leading cost to hospitals after labor in providing patient care.

35% - 45% of a hospital’s total operating expenses are for supplies, drugs, and consumables (McKone-Sweet, et al., 2005).

The healthcare supply chain is composed of two major players at various stages:

Producers Pharmaceutical companies, medical/surgical products companies,

device manufacturing/ IT products

Purchasers Pharmaceutical wholesalers, medical/surgical distributors,

independent contracted distributors, and product representatives from manufacturers

Quality

Price

Delivery time

Healthcare Standards

1. Preparation of a Supplier Code of Conduct

2. Overview and priority of suppliers

3. Communicate and educate

4. Rank

5. Measures towards suppliers

6. Act

It is your company’s response to and recognition of your responsibility in the supply chain, and a guideline to your suppliers on what is expected of them.

Zero-Tolerance Policy Slave/child labor

Unsafe working condition

Inhumane treatment

Gross environmental pollution

CSR in Contracts/Policies/Manuals/Tender

A way of starting the priority process is to divide the suppliers into groups based on two criteria:

The company’s relationship with the supplier, and

The degree to which the supplier is empowered by the company

Local Suppliers

Communicate and engage with them to ensure that they are well informed about the consequences of not adopting CSR best practices within their companies.

Communication

Group meeting

One-on-One

Supplier committee.

Self-Assessment

Quality

Environment, Health & Safety

Transparency & Accountability

Labor Management & ethical conduct

Contribution to local economy & Community Investment

Depending on the supplier’s strategic importance, different measures can be applied.

The level of cooperation,

Audits,

Reporting,

Questionnaires

Violates one of the zero-tolerance issues

Is unwilling to engage either through refusing to respond or by denying access.

Is not inclined or able to improve its performance even after being helped.

Policies/Laws & Regulations

Assistance & information

Empowerment

Sector Group

Network

Chamber of Commerce

Immediate Termination is not a solution

A better CSR effort would be to encourage and persuade by maintaining contact and thereby raising the performance of the supplier.

Will it be a voluntary act in the future?

We live by ethics & we grow by

knowledge