Supply Chain Management: Technology's Role in Achieving Optimum Performance

Healthcare Supply Chain Management:Technology‘s Role in Achieving Optimum Performance

Webinar Presented by:

Jamie C. Kowalski, MBA, FACHE June 9, 2015

Jamie C. Kowalski Consulting, LLC Copyright 2015

WEBINAR FACULTY:

JAMIE KOWALSKICEO

Jamie C. Kowalski Consulting, LLC


TOPICS

Supply Chain Management Defined Supply Chain Objectives Information Challenges and Requirements How Technology Facilitates Optimum Performance

3Jamie C. Kowalski Consulting, LLC Copyright 2015

SUPPLY CHAIN MANAGEMENT; ENTERPRISE-WIDEACTIVITY BASED COST VIEW

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EvaluateSelect

Sourcingand

Contracting

ProcessOrder

ShipProduct

ReceiveandPay

Inventoryand

Store

PickAnd

Deliver

Deliver, Use,

Charge

FillOrder

Provider/Customer

ManufacturerDistributor

ProviderDispose

ReverseLogistics

Process

Comprehensive | Complex | Interdependent


SUPPLY CHAIN MANAGEMENT DEFINED

Total Hospital Operating Expenses

45%Clinical & General Labor, Other

25%

Supply Chain Total Delivered Costs(Activity Based Cost Basis)

Supplies

15%Logistics & Distribution

15%

Other

100%Total

OperatingExpenses

* Figures based on HFMA 2008 estimates. Labor cost includes salaries, wages and benefits based on average of leading hospitals and Others is inclusive of profits to the hospitals. Source: S&P Industry Surveys: Healthcare Facilities; HFMA; industry reporting; Pipal

Research analysis.

Copyright Owens & Minor, Inc. 2008 5

TOTAL ANNUAL SUPPLY CHAIN EXPENSES REACH 50+% OF TOTAL ANNUAL OPERATING EXPENSES

OPPORTUNITIES Spend Management

Budget Accuracy and Accountability

Encumbrance

Visibility

Analytics, Metrics Drill Down From

Aggregate to…

o Cost Center

o Service Line

o Product Category

o Item

Consume Excess Inventory Levels

Value Analysis

o Supplier

o Procedure

o Patient

o Physician6


OPPORTUNITIES

Value Analysis – Meet, Not Exceed, Outcome Requirements;

MD Engagement/ Leadership, Data Driven, Emulate Best Practices, Executive Champions Standardize Process, Product, Price, Supplier


OPPORTUNITIES Sourcing & Contracting

o Value Analysis Driven & Coordinated

o Centralized

o Multi-Source Staff

GPO

Other

Best Value


Group Purchasing Organizations Model Evolving Alternatives Provided by IDNs (CSC Model), Regional

LLCs Collaboratives Forming

o Cleveland Clinic + Dignity

o Hopkins + Allegheny/Highmark

o Barnes/Jewish + St. Luke’s – KC

Insurance Companies Lack of Distinction in Portfolios, Prices? If You Are IN, Be IN

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OPPORTUNITIES


Inventory Management Inventory = CA$H

Visibility

Accountability

Consolidation

Demand Planning

Standardization; Product, Price, Supplier

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OPPORTUNITIES


OPPORTUNITIES Operations

LEAN 6 Sigma

Nurses Doing Supply Chain Tasks vs Supply Chain staff

Operations: Task Necessity; Task Efficiency

Operations: Manual vs Automated (Robotics, Info Tech)

Consolidate, Standardize, Centralize, Schedule


OPPORTUNITIES

Metrics Metrics Define and Track Performance & Value Measure What Matters, Can be Managed Metrics Are NOT Benchmarks; Benchmarks come from

Metrics Develop for Various needs

o Staff Levelo Management Levelo Customer Levelo Executive Value

Produce and Distribute Analyze, Discuss Take Action


CLINICAL VALUE OPPORTUNITIES

Improve Role & Utilization Supply Chain = Point of Origin to Point of Use Nurses Have Role in Value Analysis ONLY

More Time with patients RNs do what Educated and Trained To Do Less ‘chasing’; less ‘burnout’

Paid for desired role and service

Surgery Not an Exception Supply Chain Proves Capability Earns Trust Supply Chain is Welcomed (‘09 Survey’)


CLINICAL VALUE OPPORTUNITIES

Physician Engagement Employed and non-employed

Value Analysis ‘Rules’

Value Analysis Process

Incentives

CEO leads; SCL Supports and Executes


Technology Solutions Many Supply Chain Components

ERPs Provide the Basics; some evolution on the way

Enables Top Performance

Former “Bolt-Ons” are now Essentials; Development is Exploding

Real-Time Visibility to Point of Use

In Depth Analytics

Automation of All Transactions; Forecasting, P2P,

Costs Down, Capabilities Up; ‘Cloud Based’

Invest to Get a Return

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OPPORTUNITIES


Inventory Mgt/DemandForecastTotal Cost Per EncounterQuality Outcome/EMRStandardizationValue AnalysisCharge/Revenue Cycle

SuppliesDrugsEquipmentFoodLinenSterile Items

WasteOrder EntryPoint of UseCross-DockingProductivity

Sterile ReprocessingPrintingLaundryProduction MgtQACase Cart MgtInstrument Mgt & Tracking

ERPItem TrackingP2P Receipt

ERPSourcingBiddingRFP MgtVendor MgtContract MgtReverse Auction

Spot Bulk BuysEDIP2PP CardPrice ComparisonTier AnalysisSpend Analytics

WMS Order EntryRecords Storage & RetrievalTransportation & FreightGen Ledger/ERP

Value AnalysisFunctional EquivalentsOutcomes Matching

Spend AnalyticsCost to Change RatioValue AnalysisMetrics

Supply Chain Management

PlanningEvaluatingSelecting

PurchasingContracting

StoringWarehousing

Processing

DistributeTransport

Using

Expense Management

Enterprise-Wide Supply Chain Management Technology Tools, by Function

ERPData Cleansing /NormalizingUse AnalyticsDemand ForecastingPoint of UsePerpetual

Physical CountRecallsRotationPAR Mgt & AnalysisMobile EquipTracking

VerificationAsset MgtCross Docking

Total Cost of UseSpend AnalyticsStandardizing

Receiving/AccountsPayable

Managing Inventory


Do You Have The Best Possible …?

SC Leadership SC Strategic Plan Exec Engagement; Strategy, Coaching, Enabling, Holding Accountable

Educated Managers, Clinicians, Physicians, Staff

Organization and Processes

Business partners, Relationships Technology

Tools

Performance Metrics and Management

Patient Safety, Service and Satisfaction


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QUESTIONS/DISCUSSION

Please use “Chat” to submit any questions


To improve your inventory management processes, join us for a product education webinar:

Friday, June 12th, 3:30 PM ET / 12:30 PM PT

To improve your receiving and tracking processes, join us for a product education webinar:

Wednesday, June 17th, 11:30 AM ET / 8:30 AM PT

Registration links will be sent today


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LEARN MORE

THANK YOU

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Jamie Kowalski, Kowalski Consulting - http://jamieckowalskiconsultingllc.com/

Jump Technologies, Inc. – www.jumptech.com


Supply Chain Management: Technology's Role in Achieving Optimum Performance

Healthcare

Transcript of Supply Chain Management: Technology's Role in Achieving Optimum Performance