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Undergoing rapid expansion of services and physical space, this large midwestern integrated health delivery system found its supply chain service under extreme stress.

Background

To ensure sustainable growth, our client realized they must focus today on supply chain vulnerabilities­—starting with a clear understanding of the cultural, strategic, and technological issues.

Our Approach

Bringing thought leadership, industry best practices, and deep expertise, we created senior-level partnerships that enabled our client to look at their challenge in new ways. The result: a strategic and tactical roadmap that will enable our client to transform their supply chain and achieve an improved, sustainable service model.

Assessing cultural factors: Understanding how the lack of a strong supply chain culture affects customer service and discourages risk-sharing will enable the team to envision their desired culture.

Ensuring tools are in place: Learning about new technology and tools will help our client identify how they could make the most of their current systems and what upgrades they will need to achieve their desired future state.

Strengthening strategic partnerships: Renewing their GPO partnership will result in new opportunities for participation and cost-savings.

Engaging senior leadership: Garnering C-suite support and department-wide buy-in will develop a cohesive supply chain culture.

Results

Our client was receptive to the assessment findings and moved forward aggressively with an improvement action plan. Following the recent acquisition of a large acute care facility, our client sees the opportunity to pilot recommended supply chain improvement initiatives at this hospital site.

  • Reduce Inventory VarianceIdentified steps to reduce inventory variance <5%
  • Reduce Current Distribution Costs by 30%Identified opportunity to achieve industry best practice
  • Improve Inventory Turns
    Recommended steps to improve inventory turns for expensive oncology drugs 34%

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