Transcript Document

Journey from Materials Management to
Supply Chain Management
Supply Chain Management is…
“Supply Chain Management is rapidly becoming
the most important aspect of business success.
Those who manage their supply chain effectively
will flourish and prosper, those who don't may not
be around in a few years.”
Logistics/Supply Chain
Supply Chain Management is…
Priorities
Supply Chain
Director
Value
Analysis
Coordinator
Supply Chain
Manager
Distribution
Conversion
Process
Review
Development
GPO Review
GPO (RFP)
Value Analysis
Implementation
Value
Analysis
Policy
Vendor Policy &
Credentialing
Capitated
Orthopedic
Implant Program
Surgical Suture
and Case Cart
Management
Senior
Leadership
Review Process
Material Support
Manager
Supply Chain
Operations
Manager
Linen
Supervisor
Construction
South Addition
Asset Tracking
Capital
Process
(Dual)
Improve Linen
Quality
Peds ED
Construction
Inventory
Reduction
Contract
Review
Scrub
Dispenser
(↓Users/Usage)
Tier Max
Direct Delivery
Contract
Management
System
EMS Linen
Program
VA
Management
(ongoing)
Office Supply
Conversion
Low $ Items/
Inventory Mgmt
↓ Locally
Negotiated
Contracts
Scrub Locker
System
Premier
ASCEND
Management
Forms Vendor
Conversion
Transportation
Management
Purchasing
Restructure
Linen
Committee
Restructure
Analytical Tool
Implementation
Mobile Inventory
Management
Print Shop Review
Searching for a GPO
A Group Purchasing Organization (GPO) review
was performed to determine if the incumbent
GPO still maintained the overall best value for
St. Anthony’s Medical Center.
With a Value Statement showing a 20% savings
advantage over the nearest competitor, Premier
was chosen over 4 other GPOs.
Searching for a GPO
Comparison consisted of:
 Estimated level administrative fee
 Total administrative fees generated
 Net cash distributions based on share back or equity buildup/stock accounts, or both
 Total cash return
 Value adds
 Market basket savings/cost increases
 Overall best value
Value Analysis Defined…
• Value Analysis is defined as a cross-functional
objective evaluation used to improve and analyze
the value of a product, system or service. The
overriding goal of a Value Analysis program is to
decrease cost while improving performance and/or
quality.
• Value Analysis is effective because it is the analysis
of both function and cost.
VA PROCEDURE
Process Flow
SAMC staff
member requests
new product
Return from trial
flow chart
Refer to trial flow
chart
SAMC Director
submits Initiator &
Vendor forms to
VA Coordinator
YES
NO
Trial
necessary
?
NO
NO
Coordinat
or finds
forms
complete?
VAC
approves
request?
YES
YES
VA Coordinator
submits forms to
Director SCM for
review
Assigned to
appropriate Team for
review, investigation,
trial, or termination
NO
NO
Director SCM
assigns request
to appropriate VA
Team.
Item specific to
1 dept and = or
less than
current
expense
YES
VAC
approv
es
request
?
YES
Item added to PMM and
tracked for 1 year!
Value Analysis
FY2008 Summary of Initiatives
Initiating Dept
Identified Annual Cost
Savings
Identified Annual Cost
(Increase)
Estimated Annual
Cost Avoidance
Breast Center Total
$
1,120.00
$
-
$
-
Cath Total
$
4088.00
$
(175.50)
$
-
CCU Total
$
-
$
(4,280.00)
$
-
CCU/SICU Total
$
-
$
(94,397.84)
$
-
Central Supply Total
$
2,650.42
$
-
$
-
Dietary Total
$
6,958.64
$
-
$
-
Endoscopy Total
$
-
$
-
$
-
Health Info Mgmt Total
$
164,130.37
$
-
$
-
Infection Control Total
$
-
$
(24,063.10)
$
-
Interventional Radiology Total
$
35,548.50
$
(45,525.00)
$
-
L&D Total
$
-
$
-
$
-
Labor & Delivery Total
$
-
$
(1,259.28)
$
-
Materials Mgmt Total
$
1,376,052.33
$
-
OR Total
$
2,128,399.04
$
(189,042.92)
$
-
Respiratory Therapy Total
$
5,443.08
$
(2,056.88)
$
-
SWAT Total
$
6072.98
$
(1,278.80)
$
-
Wound Care Ctr Total
$
22,616.73
$
(180.90)
$
-
Grand Total
$
3,753,080.09
$
(362,260.22)
FY08 NET SAVINGS/(IMPACT) Year to Date
$
3,390,819.87
$ 114,116.65
$ 114,116.65
Vendor Credentialing
Purpose
To provide vendors with St. Anthony’s Medical
Center (SAMC) guidelines that define appropriate
methods for access to SAMC and expectations of
conduct. Through our Vendor Guidelines SAMC
will seek to engage vendors in a partnership that
provides the highest quality products at
competitive cost effective levels.
Vendor Credentialing
Guidelines
 Patient care, patient privacy, and clinical staff activity is not
interrupted or compromised.
 Appropriate communication is established between clinical
staff and supply chain staff regarding Vendor
Representative interaction.
 Vendor Representatives and Hospital staff make
productive use of time while on campus.
 Hospital privacy, operations and financial policies are
respected.
 Patient, associate, medical staff and representative safety
are not compromised
Vendor Policy/Credentialing
Vendor Category
# of Vendors
Sales Rep with access to OR/Invasive Labs Count
618
Sales Rep with access to Patient Care Areas Count
238
Pharmaceutical Rep/Manager with access to Hospital Count
158
Sales Rep with access to Laboratories Count
103
Service Technician with access to OR/Invasive Labs/Patient Care Areas Count
97
Service Technician with access to General Hospital Grounds Count
97
Sales Rep with access to Administration Offices/IT Count
188
Distributor Rep with access to OR/Invasive Labs/Patient Care Areas Count
63
Delivery Person with access to General Hospital Grounds Count
23
Distributor Rep/Consultant/GPO with access to Administration Offices/IT Count
49
Facilities Management with access to General Hospital Grounds Count
33
Tissue/Bone Representative with access to OR/Invasive Labs Count
2
Total Reps Registered in REPtrax
1669