Group 3A Hospital Logistics

8/14/2019 Group 3A Hospital Logistics

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Supply Chain and Logistics Hospitals

Responding efficiently can save lives.

By: Ananta Kanoria| Gagan Vermani| Ravitosh Srivastava| Saurabh Saboo| Sumit Mallik


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Hospital Value Chain


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Information Facility

InventorySourcing

Supply chain

&

Logistics

Transportation

Pricing

Hospital

Facility


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Facility

Facility plays a central role in thefunctioning of the supply chain of hospital.

Leading Factors :

Location density of population, proximity to suppliers

Type of services Specialized or General

Layout size of machines, changes in technology

Flexibility and Expandability

Number of beds size


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Hospital Facility Layout


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Inventory


InventorySourcing

Supply chain

&

Logistics

Transportation

Pricing

Inventory


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Inventory

Inventory averages about 30-35% of the hospitals Supplychain costs

A typical hospital pharmacy has more than 2,000 products

in its inventory

Hospital pharmacists are expert at evaluating the efficacy

of drugs, many haven't looked closely enough at their

inventory management processes

In fact, the typical health system pharmacy does not use

calculated methods for determining product orders.


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Consequences of traditional pharmacy purchase:

Low inventory turns per year

Missed contract compliance

Excess inventory levels

Frequent stock outs and costly emergency deliveries

Workflow interruptions and expensive rework

Increased health system labour requirements

Inventory


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Inventory - Optimizing

Inventory Process Redesign

Technology

B

uye

r

Expe

rience

Change

Managem

ent

Buyer Experience

Velocity Ranking

Technology

Inventory management tools

HIMS

Change Management

Streamlining product

replacement process

Organizational acceptance

of new process


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Inventory - Optimization

Benefits of Optimized Inventory

Increased Inventory Turns

Increased capital availability

Improved Contract Compliance

Improved service due to reduced stock outs

Freeing up of pharmacist time to focus more on

patients rather than inventory.


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Transportation


InventorySourcing

Supply chain

&

Logistics

Transportation

Pricing

Transportation


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Transport - Functions


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Optimized Transport - Benefits


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Sourcing


InventoryInformation

Supply chain

&

Logistics

Transportation

Pricing

Sourcing


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Sourcing non core functions

Major functions outsourced to third party vendors Medical transcription is very big abroad

Canteen

Cleaning/Sanitization

Managing inventory only pharmacy supplies taken

care of by hospitals. Inventory management

outsourced (Nebraska Medical Center outsourcing to

Owens & Minor)

IT AMC, website maintenance, data storage

Help desk


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Sourcing Why or why not!

Advantages Cost saving leads to additional capital for expansion

Specialization achieved by way of focusing on

providing healthcare service to patients Functions outsourced to institutions specializing in the

field so no compromise on quality

Disadvantages

Loss of Vision - third parties not attached to the cause

Third parties may divulge certain data to competitors


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Information

Sourcing Facility

InventorySourcing

Supply chain

&

Logistics

Transportation

Pricing

Information


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Contribution of

Information Technology

Integration Supply chain management system with

Financial Management system, Clinical Management

system.

Electronic Data Interchange Patient data, Invoice

Payment.

Tracking Bar Code scanning, RFID usage.


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Contribution of

Information Technology

Automation Technology

Automated point-of-use data capture that automatically initiate

restocking

Automated integration with patient accounting system

Robots to transport medium-sized items

Pneumatic Tube systems to rapidly transport small items horizontally

and vertically.


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Pricing


InventorySourcing

Supply chain

&

Logistics

Transportation

PricingPricing


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Pricing Driving Factors

Products & Services surgical supplies, radiographic film

laboratory reagents, therapeutic agents. Reduction of

commodity prices, inventory levels and distribution fees by

hospital Group Purchase Organizations (GPO).

Participants & Processes manufacturers, vendors . Right

product to the right user at the right time .

Accountabilities No departmental silos, clinician

choices to be evaluated in context of bottom line.


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Pricing Driving Factors

Departmental initiatives To achieve commodity savings.

Facilitate value analysis process that enables physicians

and line managers to take supply decisions.

Assessment of Savings potential Benchmarking and

process analysis. Handled by Cross functional team.

Focus Initiatives to attack areas where supply cost is a

significant portion of total cost per case. Scope,

Complexity, Risk to be considered.


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Hospital

Sourcing Facility

InventoryInformation

Supply chain

&

Logistics

Transportation

Pricing

Supply chain

&

Logistics


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Thank You

Documents

Group 3A Hospital Logistics