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Strategic Healthcare Partners In pursuit of World-Class Supply Chain Solutions. Jeff Bruno Cardinal Health Integrated Provider Solutions Supply Solutions Executive. World class supply chain. First Characteristic

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slide1

Strategic Healthcare Partners

In pursuit of World-Class Supply Chain Solutions

Jeff Bruno

Cardinal Health

Integrated Provider Solutions

Supply Solutions Executive

world class supply chain
World class supply chain

First Characteristic

“At the heart of every ‘best practice’ supply chain is a powerful, comprehensive information and control infrastructure that spans the entire enterprise, as well as the extended supply chain, from point of sale to vendor planning and product replenishment…”Jonathan L.S. Byrnes, DBA, MIT

traditional healthcare supply chain

Product Flow

Demand Flow

Hospital Dock

Point-of-Use

Manufacturer

Distributor

Cost of Ownership

Ends

Begins

Traditional Healthcare supply chain
traditional healthcare supply chain1

INEFFICIENCIES

  • Contracting and Pricing
  • Credits / Returns Billing
  • Proof of Delivery
  • Receiving
  • Stocking
  • Picking
  • Transportation
  • Materials Management
  • Inventory Cashflow
  • Carrying Costs
  • Handling / # of touches
  • Buildings and Maintenance
  • Systems, Equipment and Maintenance

Hospital Dock

Point-of-Use

HAVING CRITICAL IMPACT ON

  • Patient Care
  • Cost Effective Operations
  • Optimal Reimbursement
  • Effective Management

Ends

Begins

Traditional Healthcare supply chain

Cost of Ownership

world class supply chain1
World class supply chain

Second Characteristic

“…Wal-Mart, Dell Computer Corporation, and the Procter & Gamble Company…can have world-class supply chains because of their scale and focus.” –

Jonathan L.S. Byrnes, DBA, MIT

leading industry trend

Cost

Of

Ownership

Reduced Supply Chain Inefficiencies

Driven by focus and scale

Hospital Dock

Point-of-Use

Return

on

Investment

Leading Industry Trend

within a controlled supply chain environment

utilizing comprehensive consumption data

dynamic supply chain

Product Flow

Hospital Dock

Manufacturer

Distributor

Distributor

Purchasing

Point-of-Use

Demand Flow

Dynamic supply chain
integrating the supply chain environment
Integrating the Supply Chain Environment

Integrated Point-of-Use Data Capture creates control infrastructure for product and data management and utilization

Integrated Resources and Performance Metrics creates scale and focus for effective patient-care service

Integrated Distribution Infrastructure establishes distribution infrastructure for efficient patient-care service

infrastructure scale and focus
Infrastructure Scale and Focus
  • Integrated Procurement Contracts and Processes
    • Contract Optimization
    • Item Master – Standardization
    • Integrated Value Analysis Teams
  • Integrated Systems
    • Common Enterprise Systems and Integration
    • Scalable – Expandable Network
  • Integrated Supply Chain
    • Standard Performance Reporting and Measurements
    • Inventories
    • Item Unit of Measure Rationalization
    • Operating Expenses
    • Buildings – Space Management
    • Cashflow
    • Resource Management
comprehensive information and control infrastructure

Reduce number of stock out occurrences

  • Lower total cost of product distribution
  • Lower “net patient-use” distributed cost

Supply Chain Efficiencies

Data Capture & Management

Customer Satisfaction

  • Improve departmental product availability
  • Reduce clinical handling of supplies
Comprehensive information and control infrastructure

Cost Containment

  • Reduced operational expenses
  • Reduced inventory investment
healthcare world class key benefits
Healthcare World Class Key Benefits
  • Alignment of objectives & processes
    • Lean six-sigma approach to reduce or eliminate non value-added activities across the supply network continuum
      • Reduction of invoices & invoicing errors
      • Improved pricing methodology
      • Reduction/elimination of credits/return billing
      • Streamlined receiving, proof of delivery, and stocking
      • Reduction in direct manufacture transportation expenses
      • Fewer touch points in supply network
      • Standardization of processes across all facilities
      • Reduction in overall inventory
  • Real-time or near real-time decision support information
  • Reduction in total cost of ownership
  • Fill rates measured at point of use instead of the loading dock
    • 99+% fill rate
  • Cash flow timeline improvements between supply expenses & revenue
  • Ability to focus on patient needs, versus availability & location of supplies, resulting in improved clinician satisfaction and patient care
does this vision align with yours
“Best healthcare focused supply chain organization in the world”

System-wide processes

Leverage technology

Implement “total cost of ownership”

Retain, recruit, hire, & train the best

Better manage decisions

Operational Excellence

Continuously tune the process through Lean Six Sigma

Work across the system

Find new ways of doing business

Does this Vision align with yours?

World Class Supply Network

does this approach match yours

99.85%

Point of Order

Vendor

80-85%

99.85%

Point of Use

Does this approach match yours?

Creating visibility of demand at the point of use to help to stabilize patient-care service without inefficient loss

world class supply chain2
World class supply chain

Thank You !

Questions?