Presentation PDF - IDN Summit and Reverse Expo
Strategic Management Track Supply Chain Optimization Strategies Moderator: JoAnne Levy, ROi Panelists: Michelle Bush, Franciscan Missionaries of our Lady Health System Kelle Laws, ROi Mark Richardson, ROi FACULTY DISCLOSURE The faculty reported the following financial relaAonships or relaAonships to products or devices they or their spouse/life partner have with commercial interests related to the content of this CE acAvity: Michelle Bush, Franciscan Missionaries of our Lady Health System Kelle Laws, ROi Mark Richardson, ROi – No financial interest/relaAonship relaAng to the topic of this acAvity Tool Ini$alize Perform Clinical, OperaAonal, Financial Tool ROi Contract Process Implement Tool Analyze Tool Select Clinical, OperaAonal, Financial Contract Tool FMOL HS & Procured Health White Paper Available at ROi/FMOL HS Expo Booth ROi & Procured Health White Paper Please visit this link to submit your contact informaAon: www.surveymonkey.com/r/roipaper Strategic Management Track Supply Chain Optimization Presenter: Dennis P. Orthman Sr. Director Strategic Marketplace Initiative (SMI) FACULTY DISCLOSURE The faculty reported the following financial relaAonships or relaAonships to products or devices they or their spouse/life partner have with commercial interests related to the content of this CE acAvity: Dennis P. Orthman, Sr. Director, Strategic Marketplace IniAaAve (SMI) – No financial interest/relaAonship relaAng to the topic of this acAvity Presenter Background Dennis P, Orthman, Senior Director Strategic Marketplace IniAaAve Email: [email protected] Web: www.smisupplychain.com l 30+ years in healthcare supply chain, as provider and consultant l Organize mulAple SMI teams of industry thought-‐leaders To shape the future of the healthcare supply chain • Not for profit SMI’s Mission: • All execuAve level members • All tools and resources are free at www.smisupplychain.com Some SMI Tools and Resources 2014 Link Between Supply Chain and Revenue Vendor Managed Inventory Toolkit Perfect Department Index Servicing The Non-‐Acute Market Supply Chain Technology Maturity Model Perfect Order SMI ExecuAve Briefings Measuring EffecAve RelaAonships Accountable Care OrganizaAons (ACOs) Resources Contract SynchronizaAon Supply and Labor Cost Calculator Value Alignment 810 TransacAon Toolkit Vendor Access Guidelines Today’s Session • Supply Chain OpAmizaAon (SCO) – The building blocks of SCO – An overview of the SCO Tool • Ask Lots of QuesAons – AnyAme! Building Blocks Leading Up To Supply Chain Op$miza$on Perfect Order Perfect Department Index Supply Chain Op$miza$on What is Supply Chain Op$miza$on? Supply Chain Op$miza$on is: • An improvement process pathway • Designed for use by 2 trading partners • A metrics based method to: – idenAfy transacAonal inefficiencies – monitor performance improvements Why should I use SCO? • To lower overall costs by correcAng/avoiding transacAonal errors • To develop stronger business relaAonships based on an afained deeper collaboraAve understanding about integrated processes. The End Game of SCO Supply Chain Op$miza$on “Organized” • The SCO process is organized around six “pillars” or business processes. • Each pillar represents a criAcal component for operaAng an efficient supply chain transacAon stream. • Each pillar is based on a set of acAonable metrics, operaAonal best pracAces, and recommended “how to” processes. The Six Pillars of SCO Price SCO Metrics Percent of purchase order lines associated to an item master Percent of items in the item master linked to a current contract Percent of items updated through an 832 Percent of lines confirmed with an 855 transacAon Percent of lines with an item number discrepancy Percent of lines with a price discrepancy Percent of lines with unit of measure discrepancy © 2014 Strategic Marketplace Initiative ®. All rights reserved. 17 Purchase SCO Metrics Percent of purchase order lines sent through EDI 850 Percent of purchase order lines confirmed through EDI 855 Percent of purchase orders sent with a GLN Percent of purchase order lines sent with a GTIN Percent of lines confirmed with an 855 transac<on Percent of lines with an item number discrepancy Percent of lines with a price discrepancy Percent of lines with unit of measure discrepancy Percent of purchase requisiAons created electronically © 2014 Strategic Marketplace Initiative ®. All rights reserved. 18 SCO Metrics Fill Percent of line fill rates by order % Line Fill rates by product % of order lines with a back order Number of returns for mis-‐picks © 2014 Strategic Marketplace Initiative ®. All rights reserved. 19 SCO Metrics Receive Percent of purchase order lines received to stock through the EDI 856 Percent of purchase order lines with an EDI 856 Percent of purchase order lines where the EDI 856 is inaccurate Percent of purchase order lines delivered on the requested date Percent/Number of purchase order lines received undamaged Percent/Number of returns for any Damage reason code Percent/Number of purchase order lines received with incorrect paperwork Percent/Number of purchase order lines received with incorrect quanAty Percent of purchase orders received that contain a GLN Percent of purchase order lines received that contain a GTIN © 2014 Strategic Marketplace Initiative ®. All rights reserved. 20 SCO Metrics Percent of invoices sent through EDI 810 Pay Percent of invoice lines linked to a current GTIN Percent of invoice lines linked to a current GLN Percent of invoice lines matched first Ame Number of lines received, not invoiced Number of lines invoiced, not received Percent of add-‐on costs matched first Ame Percent of invoices paid on <me Days sales outstanding Percent of payments made through EDI 820/ACH Number of direct invoices (no purchase order) © 2014 Strategic Marketplace Initiative ®. All rights reserved. 21 Supply Chain Op$miza$on A Transforma$onal Pathway The SCO Pathway is a pdf document that features a variety of links that allow a user to navigate through the document or through secAons of the document. Visit www.smisupplychain.com © 2014 Strategic Marketplace IniAaAve. rights reserved. To dAll ownload This publicaAon is available at no charge. Contents of this publicaAon may be reused or reproduced, in part or in whole, only with the specific wrifen acknowledgement of the Strategic Marketplace IniAaAve as the original author, referencing the web site www.smisupplychain.com. 22
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