Supply Chain Management (SCM) comprises one of the most diverse set of functions in an organization. Consequently, it is not surprising that in healthcare organizations, supply chain decisions, more than most other hospital processes, impact almost every other function in a hospital, influencing clinical outcomes and financial performance. With such breadth and responsibility, layered on top of multiple conflicting objectives specifically in healthcare, managing the supply chain can be challenging and overwhelming. For leaders keeping their eyes on a multitude of initiatives, functions in a highly dynamic environment requires knowledge, agility, and expertise.
In our consulting, strategy and operational work at HSCX (www.hscxi.com) we have observed 12 specific keys to leadership in supply chain management. By developing these capabilities, managers can assure themselves that they are addressing the right priorities while keeping their eye on the right ball.
- Highly committed executive leadership teams which understand and appreciate the value achievable from supply chain management
- Physicians and other clinicians actively engaged in supply chain management decision making together with open and trusting collaborative relationships between clinicians and SCM staff
- Supply chain processes designed from Procure to Pay
- Category Management focus in sourcing
- Effective and pervasive use of analytics to support decision-making
- Large majority of spend under contract (both GPO and hospital negotiated)
- High compliance of purchases to contracts
- Greater utilization of standardized products
- Effective and well-organized value analysis team process
- Product identification through GS1 standards and UDI
- Optimized distribution networks and capabilities
- Targeted performance management
HSCX works with hospital administrative and clinical groups focusing on these priorities and to help develop organizations to ably leverage them.