Journey from Materials Management toSupply Chain Management

Supply Chain Management is…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 Director

Value Analysis

Coordinator

Supply Chain Manager

Material Support Manager

Supply Chain Operations

Manager

Linen Supervisor

Distribution Conversion

Process Review

Development

Construction South Addition

Asset TrackingCapital Process (Dual)

Improve Linen Quality

GPO Review GPO (RFP)Peds ED

ConstructionInventory Reduction

Contract Review

Scrub Dispenser

(↓Users/Usage)

Value Analysis Implementation

Value Analysis

PolicyTier Max Direct Delivery

Contract Management

System

 EMS Linen Program

Vendor Policy & Credentialing

VA Management

(ongoing)

Office Supply Conversion

Low $ Items/ Inventory Mgmt

↓ Locally Negotiated Contracts

 Scrub Locker System

Capitated Orthopedic

Implant Program

Premier ASCEND

Management

Forms Vendor Conversion

Transportation Management

Purchasing Restructure

Linen Committee Restructure 

Surgical Suture and Case Cart Management

Analytical Tool Implementation 

Mobile Inventory Management 

   

Senior Leadership

Review ProcessPrint Shop Review

Supply Chain Management is…Supply Chain Management is…PrioritiesPriorities

Searching for a GPOSearching 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 GPOSearching for a GPO

Comparison consisted of: Estimated level administrative fee Total administrative fees generated Net cash distributions based on share back or equity build-

up/stock accounts, or both Total cash return Value adds Market basket savings/cost increases Overall best value

Value Analysis Defined…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.

SAMC staff member requests

new product

SAMC Director submits Initiator &

Vendor forms to VA Coordinator

Director SCM assigns request

to appropriate VA

Team.

Item specific to 1 dept and = or

less than current

expense

Assigned to appropriate Team for review, investigation, trial, or termination

Coordinator finds forms

complete?

Item added to PMM and tracked for 1 year!

YES

NO

YES

NO

NO

YES

Refer to trial flow chart

Trial necessary

?

VA Coordinator submits forms to Director SCM for

review

VAC approv

es request

?

VAC approves request?

NO

YES

Return from trial flow chart

YES

NO

VA PROCEDUREProcess Flow

Value AnalysisValue AnalysisFY2008 Summary of InitiativesSummary of Initiatives

Initiating DeptIdentified Annual Cost

SavingsIdentified 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 $ - $ 114,116.65

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) $ 114,116.65

FY08 NET SAVINGS/(IMPACT) Year to Date $ 3,390,819.87    

Vendor CredentialingVendor CredentialingPurposePurpose

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 CredentialingVendor Credentialing GuidelinesGuidelines

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/CredentialingVendor 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