Supply Chain Management
Supply Chain Management makes an important contribution to a healthcare provider organization’s overall approach to effectiveness, efficiency and sustainability. It plays a crucial role in supporting the patient’s experience, improving outcomes, reducing risks, furthering individual and team results, and in leveraging the equation “value added versus cost.”
Effective and efficient Supply Chain Management discriminates between those goods, services and relationships that create value for the organization and its patients at every step in the Care Delivery Process and those goods, services and relationships that add no appreciable value and, therefore, can be treated for all practical purposes as costs.
Evaluating Supply Chain Management solely on costs is “costly”. Most quality costs are not detected by accounting practices and wreak havoc on operating margins, health outcomes and the patient experience. Hidden costs are enormous, often as great as an organization’s net profit or operating margin.
Our approach is to analyze systematically how the products, services and relationships managed by the supply chain add value to and through every step in the Care Delivery Value Chain and its support processes We produce an “as is” map, identifying breakdowns that produce different kinds of waste. We then create a “should be” map and determine the value opportunity present in the gap by measuring the qualitative and quantitative magnitudes of value lost or destroyed by traditional approaches to cost which ignore the cost of quality and other hidden costs
From this, we identify key products, services and relationships managed by the Supply Chain and their value added. We then develop, with our clients, the policies, practices, processes and management systems necessary to recover value lost through wasteful, ineffective and inefficient practices; leveraging effectiveness and efficiency throughout the care delivery process to make a significant positive impact on operating margins.
We also analyze the Total Cost of Ownership (TCO) associated with the major steps of supply stream costs from beginning to end, and redesign processes and practices that are not effective and efficient.