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Controlling Costs / Improving Delivery PowerPoint PPT Presentation

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HHS SUPPLY SERVICE CENTER. Controlling Costs / Improving Delivery. HHS Supply Service Center. Our Goal... The Perfect Order. Has the right amount of the right products Is damage free Arrives on-time Arrives at the correct location Is filled completely on the first call

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Controlling Costs / Improving Delivery

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Controlling costs improving delivery


Controlling Costs / Improving Delivery

Hhs supply service center

HHS Supply Service Center

Our Goal... The Perfect Order

  • Has the right amount of the right products

  • Is damage free

  • Arrives on-time

  • Arrives at the correct location

  • Is filled completely on the first call

  • Is entered correctly

  • Is communicated via a customer-specified medium

  • Has no invoicing/collection errors

Hhs supply service center1

HHS Supply Service Center

Communication is THE Key

Pacific Islands

  • Order from Pre-defined Formulary

  • Develop Comfortable Safety Stock Levels

  • Routine Orders

  • Prompt Payment

Hhs supply service center2

HHS Supply Service Center

Formulary Development


  • Issues of Safety, Effectiveness, and overall Value

    - SSC has staff pharmacist on staff for help

  • Product Availability

  • Cost Savings

  • Supply Chain Speed

    Problems with Non-Stock Items

  • Sometimes Difficult to Procure

  • Dating Issues

  • Require Multiple Small Shipments

    • - high transportation costs

Formulary advantages

Formulary Advantages

Cost Issues

No Price Changes

Minimize Pricing

- Quantity Discounts

- Repackaged Items

Optimization of Transportation Costs

- Maximization of Ocean Freight

- Minimization of Air Freight

- Minimize Minimum Charges (Customs Fees, Hazard Fees)

Minimize Labor Required to Correct Issues

Hhs supply service center3

HHS Supply Service Center

Satellite Warehouse


  • Gain Shipping Efficiencies

    - Negotiate favorable tenders

    - Minimize emergency shipments

  • Emergency Product Availability

  • Decrease Response Time

  • Cost Savings (buy larger quantities)


  • Formulary

  • Minimize Non-Stock Items Requirements

  • Utilize SSC Information Systems

  • PIHOA Endorsement is a Critical First Step

Product Pricing is Important – Transportation Optimization MORE Important!!!

Hhs supply service center4

HHS Supply Service Center

Satellite Warehouse

Can a satellite warehouse support itself?

  • Most shipments now go Air Freight

  • Ocean freight is an appropriate response

  • What cost savings can be achieved?

  • Can these cost savings cover potential 3PL expenses?

Variables to Address

  • Formulary Volumetrics and Velocity

  • 3PL Storage and Transaction Costs

Hhs supply service center5

HHS Supply Service Center


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