Supply items add up.
It is estimated that the supply chain can make up 30-50% of a hospital’s
expenses. In 2020 medical
supplies will surpass labor as the biggest expense for hospitals and health
systems. These are some big stats. Much of the time the focus has been on cost cutting ,but that isn't always the best answer.
Quality is still a concern. Supplies need to perform and drive successful
patient outcomes. Suppliers who can
provide high quality while offering lower costs will win the game. Here are some tips for strategic supply chain
management.
Cost Analysis
This is the given but the old adage of what gets measured gets done is true. Take the time to re-evaluate your product lines. This can be quarterly, annually or
beyond. Have a system and analyze if you are still using the right supplier or it is time to make a change. Negotiate costs based on your volume increase, raw materials data, or
buying in larger quantities at a time.
The key is to not be complacent.
Continue to fight for the bigger, better deal.
Automation
Look for ways to increase efficiencies. There are endless technologies from software,
apps, or complete ERP systems that can improve your processes. If you save time doing administrative or
repetitive items, you can spend more time doing what you do best. Look for ways to automate to conserve your
biggest resource – time.
Take time to forge relationships with your vendors. Know what makes them tick. Learn about their
lives beyond their product or service. Set up
a calendar for touch base contacts such as phone calls, emails, or written
letters. Move beyond just the digital
world. This helps you negotiate more effectively and builds a partnership mindset to drive the win-win agreements.
Cross Reference
Determine the value proposition. Most of want to know
what is in it for me to move business or convert to a new line. Request a cross reference from your
vendors to show the savings and value they can provide. A value analysis is a priceless tool that
provides hard data to prove savings and the value of a move.
It is more important than ever to create a supply chain
strategy. Have other tips to help your
peers? Please leave suggestions in the
comment section below.
