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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

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