Mobile Technology Delivers Next Gen Supply Chain in Healthcare
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Transcript of Mobile Technology Delivers Next Gen Supply Chain in Healthcare
Mobile Technology – An Essential Component
of the Next Generation Healthcare Supply Chain
From Jump Technologies’ White Paper
Published April 2015
1 Confidential. Copyright 2015 Jump Technologies. All rights reserved.
Executive Summary
• Economic pressures, reform and evolving business structures drive hospitals
toward more efficient, coordinated processes
• Supply chain – second largest and fastest growing expense in healthcare – is a
substantial area of focus for reform
• As provider organization structures evolve, they need to track complex
movements throughout diverse systems
• Despite widespread use, ERP systems often fail to meet needs
• Cloud and mobile technologies are driving the next gen healthcare supply chain
• Paired with ERP systems, organizations get the scalability, visibility and flexibility needed
to execute new business processes
• Hospitals must capture information wherever care is delivered
• Meaningful data becomes the cornerstone of solid business decisions
• Data security is a critical deliverable
2 Confidential. Copyright 2015 Jump Technologies. All rights reserved.
“Provider organizations
moving to mobile will
benefit from fast
implementation,
ubiquitous data
capture, low start-up
cost, long-term
affordability, and rapid
user onboarding to
quickly achieve the
ROI they’ve been
looking for in an ERP
system.”
John Freund, CEO
Jump Technologies Inc.
ERP Expectations Versus Results
Confidential. Copyright 2015 Jump Technologies. All rights reserved.3
Current Inventory Management
Results
Nearly every hospital in America has
implemented an Enterprise Resource
Planning (ERP) system, yet hospital
staff members report:• Stock-outs
• Overstocking
• Waste (due to expiring supplies)
• High labor expenses from manual
processes
• Lower-than-expected savings from
supply chain
ERP Results Don’t Meet
Expectations
• ~59% of projects have exceeded
their planned budgets
• 53% of projects have exceeded their
planned durations
• 56% of organizations have received
less than 50% of the measurable
benefits they anticipated from their
ERP software initiatives.
SOURCE: Panorama Consulting Solutions 2014 ERP report
[http://Panorama-Consulting.com/resource-center/2014-erp-report/]
Continuing Challenges in Inventory Management
Creating an inventory management infrastructure is key to addressing rapid growth, increasing complexity and disparate systems.
To ensure success, organizations must consider these challenges:
• Aggregating multiple ERPs• Multiple ERP systems become part of a single organization through growth, mergers, acquisitions, partnerships
• Aggregating information across these systems is difficult; migration to a single system can take years to complete
• Legacy system issues (cost, control, time)
• Legacy systems, including ERP-based supply chain modules and inventory cabinet systems have historically failed to deliver the results hospitals need
• ERP systems frequently take long periods of time to implement, exact huge consulting fees, and take years to deliver ROI (due to high initial investments)
• Hospitals wrestle with typical inventory management problems: stock-outs, overstocking, hoarding, maverick spending and waste due to expiring products
• Disbursement following delivery• Hospitals have successfully worked with distributors and internal distribution centers for timely receipt of the products they need
• Challenges remain related to the disbursement of supplies within the hospital and throughout large and loosely connected organizations
• Department-specific needs• Most inventory management systems support one approach, so hospitals must use a single process such as locked-cabinets or PAR
• Yet processes specific to different areas of practice or care would better meet the needs of clinicians and patients
• Single-Use Devices• One barrier to mobile adoption has been single-use devices; often heavy, bulky units used for scanning in specific systems or for a specific application
• Ongoing difficulties include data entry, the possibility staff members could carry more than one unit throughout their rounds if performing multiple tasks
Confidential. Copyright 2015 Jump Technologies. All rights reserved.4
Setting Goals to Improve Inventory Management
5
• Goals to improve supply management include:
• Create and implement an inventory management process that provides
system-wide connectedness and visibility
• Match processes to department-specific supplies and care in order to
increase nursing / clinical staff satisfaction, time with patient
• Eliminate stock-outs
• Scale down inventory (both on-hand and ongoing) to reduce overall cost
• Reduce labor associated with inventory management
• Eliminate off-contract spending and rush delivery charges
• Reduce waste from expiring product
Confidential. Copyright 2015 Jump Technologies. All rights reserved.
So, Why Go Mobile?
Confidential. Copyright 2015 Jump Technologies. All rights reserved.
Today’s mobile technology delivers numerous benefits. Though use in healthcare is in
early stages, it is rapidly gaining popularity and delivering benefits:
• Multiple applications can reside on a single device
• Mobile devices with cloud-based applications are constantly updated with latest software
• Mobile delivers optimal visibility throughout an organization, for a more connected supply chain
• The Aberdeen Group reports the importance of supply chain visibility is rising
• “Increasing visibility is a critical strategy for enterprises aimed at reducing costs and improving operational
performance in the context of their increasingly complex and multi-tiered global supply-demand networks.”
• Mobile is a highly efficient way to deliver technology; deployment is rapid, user adoption is
immediate, and process efficiencies and ROI are realized quickly
• Meaningful analytics result from improved data aggregation throughout the organization• With a robust infrastructure supporting a mobile-based system, data is constantly fed into smart reporting
• Supply chain leaders will benefit from a more accurate view of their entire organization’s use of supplies.
6
Mobile Technology in Healthcare
The use of mobile applications is growing exponentially:
• Mobile revolutionizing capturing information at the bedside• Data aggregation enables better understanding of treatment and patient outcomes
• Capturing information at point of care improves billing accuracy
• Builds understanding of the total episode of care
• Mobile apps provide continuing clinician education
• Up-to-date information dissemination, ongoing training, product introductions, best-practice sharing and care protocols
• Mobile apps being used to help patients to manage their health, engaging with care teams during episodes of care, receiving and
understanding aftercare instructions, and monitoring ongoing health issues
• Mobile technology will revolutionize the way the hospital enterprises are run
• Organizations gain greater flexibility to design, implement and effectively execute new business processes
• Smart devices make it easier to “see” throughout the organization as hospital systems grow in complexity and reach• Visibility to an entire healthcare delivery organization, specifically supply inventory and use, becoming a requirement
• Supply chain practitioners will leverage inventory reporting tools that provide real-time velocity for every item used within an organization
• Smart devices make staff adoption easier, standardize processes for consistent usage, create greater visibility with more accurate reporting
• Ubiquitous data capture builds intelligent data, creating the cornerstone of solid business decisions
Confidential. Copyright 2015 Jump Technologies. All rights reserved.7
The Next Generation of Supply Chain is Data Driven
As hospital supply chains evolve, they will require considerable
tracking of complex movements throughout a diverse organization.
In a recent article, Daniel Miller, Divisional Head, Finance, at Innovation
Enterprise, examined the “7 Characteristics of the Next-Generation Supply
Chain.” Highlights for healthcare providers include:
• Data Driven
• Data needs to be collected from as many sources as possible to create wide ranging insight with a positive
impact on the supply chain
• Flexible• Next generation supply chains will be agile operations that adapt to changing circumstances
• Proactive• Next generation supply chains realize the importance of continuation of service regardless of conditions
• Optimized Inventory• On-hand inventory must meet demand without being excessive
• Next generation supply chains manage supplies more efficiently, while continuously monitoring stock levels
The other characteristics examined included global, green and fast.
Confidential. Copyright 2015 Jump Technologies. All rights reserved.8
“7 Characteristics of
the Next Generation
Supply Chain”
http://channels.theinnovationenterprise.
com/articles/the-7-characteristics-of-
the-next-gen-supply-chain
What Comes Next?
• Healthcare organizations gain immediate benefits with mobile
• Supports better business processes
• Fast implementation
• Easy staff training
• Rapid adoption
• Pervasiveness of data capture
• Low start-up and ongoing costs; quickly achieve ROI and additional
savings
• Improved data accuracy and better reporting; information needed to
make smart decisions for the hospital business
Confidential. Copyright 2015 Jump Technologies. All rights reserved.9
Thank You!
Confidential. Copyright 2015 Jump Technologies. All rights reserved.10
To read the full white paper, visit:
Mobile Technology - An Essential
Component of the Next Generation
Supply Chain in Healthcare