Owens_MinorLunchKeynote

Supply Chain Management“A Customer’s View”

The Johns Hopkins Health System

Presentation Outline1. Hopkins At-A-Glance

a) Vital Statsb) Hopkins of The Future

2. Operational Goals3. Supply Chain at Hopkins

a) Achieving “best in class” statusb) Performance metrics

4. Partnerships That Work5. Supply Chain Challenges and Opportunities

Hopkins At-A-Glance• Johns Hopkins Health System

– The Johns Hopkins Hospital• Acute Care – 921• Neonatal ICU – 36• Comprehensive Rehab – 14

– Johns Hopkins Bayview Medical Center• Acute Care – 318• Neonatal ICU – 25• Non-Acute Care – 369

– Howard County General Hospital• Acute Care – 200• Neonatal ICU – 18

– Johns Hopkins Community Physicians– Johns Hopkins Home Care Group

Hopkins At-A-GlanceHere’s What We Do Yearly Activity

Discharges 82,523Patient Days 414,144Pieces of Mail 12,000,000Pounds of Trash 12,000,000Miles of Cart Movement 146,000Meals Served 3,200,000Pounds of Linen 4,400,000Cleanable Square Feet 3,000,000

Supporting Our Future

Hopkins 2011

Vice President

Sr. Director Supply Chain

DirectorNutrition Svcs

Director Environmental Svcs

Director Special Services

AdministratorCommunity Health

ExecutiveAssistant

Manager Finance

Asst DirAfter Hours

Dir JHH MM

Dir JHBMC MM

Dir MDC

Dir Corp Purch/Shared Svcs

Asst Dir Inv Control

Products Nurse

Mgr Pat Svcs

Mgr Retail Svcs

Mgr Catering

Mgr Waste

Mgr Salvage

Mgr Mail

Mgr Patient Transport

Reprographics

Mgr Call Center

Vice President General Services (JHH)Vice President Supply Chain Management (JHHS)

Operational Goals

1. Have “our service equal our science”2. Achieve “best in class” status in the

healthcare field3. Fix what’s broken NOW

Supply Chain At HopkinsAchieving “best in class” Status• Consolidation of Procurement Process

$415,943,113JHHS

$270,355,757JHU

$686,298,871Combined

Supply Chain At HopkinsAchieving “best in class” Status• State of the art Receiving Facility

– Complete separation of clean and soiled activity

– Capacity to handle all incoming material – Re-routing of all truck traffic away from the

main buildings

Supply Chain At HopkinsAchieving “best in class” Status

• Facilities Redesign– We went from this……..


• Facilities Redesign– To this


• Distribution Challenges– Receiving center ¼ mile for main building– 2,000 carts or over 400 miles of distance daily– Variations in process

• Timing• Functions

– Supplies, Linen, Food, Trash

• Distribution Technology– AGV’s– Tugs– Towline


• Towline Working as Designed

Supply Chain At HopkinsAchieving “best in class” Status• Open vs. Closed Unit Supply Distribution

– Open wired shelving– Closed “biometric” cabinets

Supply Chain At HopkinsAchieving “best in class” Status• Offsite Distribution

– 50,000 square foot facility– 5 miles from main campus– Management

• In-House• Outsourcing

• Supply Chain Metrics


Johns Hopkins MDC Inventory Values

$0$500,000

$1,000,000$1,500,000$2,000,000$2,500,000$3,000,000$3,500,000$4,000,000

Janu

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Johns Hopkins MDC Valuated Stock

0200,000400,000600,000800,000

1,000,0001,200,0001,400,0001,600,0001,800,000

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Johns Hopkins MDC Issues Vs. Receipts

$0$1,000,000$2,000,000$3,000,000$4,000,000$5,000,000$6,000,000$7,000,000

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Issue ReceiptsJohns Hopkins MDC

IssuesTurn Rates

22.2618.26

17.1117.68

32.46

18.4517.99

19.1016.03

19.11

0.005.00

10.0015.0020.0025.0030.0035.00

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Johns Hopkins MDC Inventory Adjustments

-$1,000,000

-$500,000

$0

$500,000

$1,000,000

$1,500,000

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Year 2007 Year 2008

712 Positive711 Negative

Johns Hopkins MDC % of Items Adjusted

0%20%40%60%80%

100%120%140%

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Johns Hopkins MDC Open Purchase Orders (PO's)

100 2 4 5

17 20

6149

92

0

20

40

60

80

100

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Johns Hopkins MDC Excess Inventory +/-

-$500,000

$0

$500,000

$1,000,000

$1,500,000

$2,000,000Ja

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Year 2007 Year 2008

Target: 18 Turns

Partnerships That Work

• On-site procurement support– Stock/Non-Stock Contracting

• Commodity/Functional Unit support– Product de-casing– Off hours deliveries

• On-site area management– Warehouse management– Low unit of measure distribution

Supply Chain Challenges and Opportunities

• Safety• Standardization

– Value Analysis Process• Supporting underutilized businesses• Staffing and Training

– Replenishing the pipeline

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