The Path to Higher Performance (Part 1)

Do we know the path to a high performing Supply Chain?  At HSCX during the past couple of years we have assessed and advised dozens of healthcare supply chain organizations.  All are filled with well-intentioned, hard-working professionals striving to drive value in their organizations.  But most will acknowledge that progress is slower than they would like – and certainly slower than their administrative and clinical organization leaders want and need.  Why is this?  How can we accelerate progress?

Our conclusion from this work is that most supply chain strategies as articulated by supply chain organizations are not sufficiently clear, comprehensive, nor understood by the customers (the buyers) of the supply chain services.  Relatively few clinicians understand the workings within the black box of the supply chain.  They just want the best products easily accessed and, increasingly, within budgetary envelopes.  And surprisingly many administrative owners of supply chain only view supply chain as a necessary cost to be worked down through supplier negotiation.

We know that supply chain is much more than sourcing and negotiation.  And we know that in addition to fiscal management, it has a major impact on clinical efficacy and revenue recognition.  When supply chain managers through awareness of these three drivers build and drive effective and comprehensive strategies towards this end, progress is more likely.  Further, when clinicians and administrators understand and are aware of these drivers, they are much more likely to support and facilitate efforts by the supply chain organization.

In next month’s blog, we’ll tell you how to build supply chain strategies for higher performance.

Posted by: Jim & Gene

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