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Week_8_Supply_Chain_Management-with-audio.pdf
HMGT601 – SUPPLY CHAIN OPERATIONS
G. Blackard
WHY IS SUPPLY CHAIN SO IMPORTANT?
Can represent 40% or more of total costs for many health care organizaOons
Supply chain operaOons directly influences revenue generaOon opportuniOes
Customer expectaOons and experience requires flexibility and supply on demand approach
CURRENT DATA AND TRENDS
Source: KaufmanHall
CURRENT DATA AND TRENDS
Source: McKinsey & Co.
CURRENT DATA AND TRENDS
Source: McKinsey & Co.
COSTS FOCUS
Source: KaufmanHall
SUPPLY CHAIN STRATEGY
Source: UPS – Health Care Supply Chain
SUPPLY CHAIN LEVERAGE POINTS
1. Segmenta*on – The wide variaOon in medical and pharma supplies requires a segmented approach to supply chain strategy. Some supplies can arrive later, while others are criOcal to care quality and outcomes.
2. Agility – Health care organizaOons must be agile in their strategy. Looking at producOon cycles and matching with higher demand cycles leads to less inventory on the shelf and faster replenishment lead Omes
3. Measurement – the best-in-class supply chains (Amazon, Walmart) measure everything for beaer management and improvement opportuniOes. Inventory days on hand, warehousing, obsolescence, labor costs per SKU, etc.
Source: McKinsey & Co.
SUPPLY CHAIN LEVERAGE POINTS
4. Alignment – standardize along the supply chain where possible including alignment with other health care organizaOons and their supply chains. Leveraging partnerships can lead to beaer buying power and faster distribuOon
5. Collabora*on – Are there opportuniOes for profit sharing with supply chain costs savings? Where and with who can your organizaOon collaborate and drive beaer results?
Source: McKinsey & Co.
QUESTIONS
1. What has your organizaOon done around supply chain costs improvement?
2. This area has been a significant focus the last decade. Do you believe health care has done all it can in this area? Why or why not?
3. When looking at the leverage points given by McKinsey & Co., which of the 5 do you feel health care can improve in? Why?
