A New Kind of Supply Chain Perspective
The supply chain is made up of thousands of moving parts that need to be artfully and scientifically managed and controlled to form a unified supply chain system. The supply chain is not about purchasing, receiving, distribution or warehousing functions, but is all about linking these entities together with your supplier networks so that you can provide your customers with the highest level of service excellence at the lowest possible cost.
A new kind of perspective! With the advent of supply chain regional service centers (one-stop supply chain shared services) popping up around the nation to reduce a free-standing hospital or system’s purchasing, inventory and operating cost, I believe that a new supply chain model is emerging that will set the stage for reinventing how your hospitals and system’s supply chain management is organized in the future.
It’s not just about cost! One of the benefits of the SCRSC beyond price savings is the efficiency that can be brought about by controlling more of your supply chain than ever before. For instance, one of our SCRSC clients has a custom pack manufacturing center which not only can dramatically lower custom pack cost and lower inventory, but can make changes to these packs almost overnight. Now, it takes about three months to make the same change through one of your pack manufacturers. This is a significant supply chain improvement over yesteryears supply chain models.
More control, more savings! Another important aspect of the SCRSC model is that hospitals can now venture into new supply chain areas (e.g., cook-and-chill food preparation, records management, drug repackaging, instrument repair, etc.) than ever before. This will give your hospital even more control and cost savings than ever before, since you will now be combining your volume with 5, 7, or even 12 hospitals that are owners of the SCRSC.
The times are changing! With the advent of even more cost controls over the next few years by the federal government (i.e. $500 billion Medicare reductions), new and better ways to manage and control your supply chain operating cost must be identified by supply chain managers to ensure your hospital’s viability in this decade and beyond.
The good news is that SCRSC’s are one big answer to this challenge in my opinion. If you don’t have a SCRSC already in operation in your region of the country that you can join, may I suggest that you start one with your colleagues so that you too can gain a new supply chain perspective that will open the door to millions of dollars of new savings and operational improvement for your hospital. It is the wave of the future!
Filed Under: savingsblog • Supply Chain
