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CREDIBILITY – Does Your Supply Chain Have It?. SEPAC of AHRMM Tuesday, September 21 st 2010. PRESENTER. William Stitt, CHL CRCST CMRP FAHRMM Vice President, Materials Management Robert Wood Johnson University Hospital New Brunswick, NJ Phone: 732-937-8572

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credibility does your supply chain have it

CREDIBILITY – Does Your Supply Chain Have It?

SEPAC of AHRMM

Tuesday, September 21st 2010

presenter
PRESENTER
  • William Stitt, CHL CRCST CMRP FAHRMM

Vice President, Materials Management

Robert Wood Johnson University Hospital

New Brunswick, NJ

Phone: 732-937-8572

Email: william.stitt@rwjuh.edu

agenda
AGENDA
  • Defining credibility within the healthcare supply chain:
    • Why is it important?
    • How do we use it?
  • How we build credibility
  • Credibility in Action
  • Relationships
  • Questions and Answers/Discussion
credibility
CREDIBILITY

The quality, capability, or power to elicit belief.

The degree to which a communicator or communication is believed by the recipient. The credibility of such a message will be increased if delivered by a communicator who is expert, trustworthy, and appealing.

supply chain impact
SUPPLY CHAIN IMPACT
  • Maintaining credibility is paramount to a sustainable and successful supply chain when interacting with:
    • Administration
    • Customers
    • Staff
    • Physicians
    • Vendors
why is this important
WHY IS THIS IMPORTANT?

The ethicaldebate

Creating and fostering an environment of trust

Ongoing support and “buy in”

Career advancement

credibility in action
CREDIBILITY IN ACTION
  • Contracting/Negotiation/Sourcing
  • Strategic and operational planning
  • Management of day-to-day operations
  • Value analysis activities
  • Building a strong internal team
  • Engaging physicians/clinicians in cost reduction efforts
  • Designing and implementing process change
  • Reporting and analytics
credibility with administration
CREDIBILITY WITH ADMINISTRATION

Setting reasonable goals and objectives

Data driven decisions

Provable results

Communicating challenges and barriers

Bring solutions along with the issues

Take and create ownership

Embrace an ROI/cost benefit methodology

Meeting timelines and deadlines

credibility with administration10
CREDIBILITY WITH ADMINISTRATION

Scenario:You have to report cost savings results to your Administrative Team. To make it easy, you compare total February expenses against March expenses (which are less) and report the difference as savings.

Does this activity help your credibility? Why or Why Not?

credibility with customers
CREDIBILITY WITH CUSTOMERS

Attention to their needs

Explain why

Communicate the “big picture”

Be flexible

Do not take the easy way out

Communicate what you can do – and what you cannot

Do not shift responsibility

credibility with customers12
CREDIBILITY WITH CUSTOMERS

Scenario:Your organization decides to implement a point of use system for supplies. To gain buy in, you tell them if they use the system, they will never run out of product for their patients.

Is this a good way to use your credibility? Why or Why Not?

credibility with staff
CREDIBILITY WITH STAFF

Set clear expectations

Be consistent

Focus on the facts

Explain the methodology and the reason

Visibility

Empowerment

Collaborative problem solving

credibility with staff14
CREDIBILITY WITH STAFF

Scenario:As part of an organizational redesign, you determine that the work flow and schedule in Distribution needs changed. Since you know what needs to happen, you make the changes and post them in the department one week prior to the “go live” date.

Is this an appropriate strategy when building credibility with your staff?

credibility with physicians clinicians
CREDIBILITY WITH PHYSICIANS/CLINICIANS
  • Patient/Outcome focused
    • Balancing clinical and financial factors
  • Practice product decision “neutrality”
    • Embrace the value proposition
  • Data driven discussions
    • Alternatives
    • Reimbursement
  • Be well informed
credibility with physicians clinicans
CREDIBILITY WITH PHYSICIANS/CLINICANS

Scenario:Your organization has standardized to a particular type of Trocar. A physician requests an alternate product from another vendor. You send a memo stating your denial of this request due to the internal standardization initiative.

How has this helped/or hurt your credibility with the physician?

credibility with vendors
CREDIBILITY WITH VENDORS

Clear communications

State your intended outcome

Start and end meetings on time

Avoid “posturing”

Demonstrate operational knowledge

Know the marketplace

Negotiate in good faith

Honor your commitments

Be conscious of PRECEDENT

credibility with vendors18
CREDIBILITY WITH VENDORS

Scenario:Your department has rolled out a capitated matrix for orthopedic implant purchases. Although you have adopted a one price for all approach, a primary vendor with a strong physician relationship refuses to participate. They offer a price within 5 % of the matrix as their final offer. All other vendors have met the price and will participate.

What is the best way to handle this to preserve your credibility? What are the ramifications?

relationships
RELATIONSHIPS

Demonstrating credibility fosters long-term relationships

Relationships rooted in credibility have the potential to challenge the norm and set new standards

Allow you to focus on the facts and the outcome, rather than personalities or secondary issues

Develop relationships that enhance your strategic position outside of traditional supply chain activities (revenue cycle, nursing, support services)

Adopt a resource or consulting approach in relationship building!

data integrity
DATA INTEGRITY

Be able to explain the results/outcome and how they were achieved

Teach the methodology

Utilize consistent processes for data capture and reporting

Reference past performance as well as current achievements (trending)

key points
KEY POINTS

Initial credibility can be assumed, ongoing credibility must be earned

Be conscious of dynamics that can undermine your credibility

Decisions set precedence

Credibility extends not only to actions, but to documentation and reporting

questions and discussion
QUESTIONS AND DISCUSSION

What are some other ways we can create credibility within the supply chain?