The Path to Higher Performance (Part 2)

In the last blog we discussed the need for articulate and directed supply chain strategies.  In this blog, we’ll tell you how to structure these strategies.

In the healthcare world, supply chain organizations need to build strategies that encompass three distinct strategic drivers.  Every program to improve performance should include elements of these three drivers.  To help plan your improvement initiatives, we have summarized the leading elements of many successful change programs.


1. Improve Efficiency

  • Reduce Non-standard Product Use through:
    1. Compliance Management
    2. Limited Physician Preference Items
  • Clinical Engagement/VAP
  • Reduce Inappropriate Consumption through:
    1. Clinical protocols that are sensitive to product use
    2. Clinical and administrative staff training
  • Clinical product awareness (digital labelling)
  • Effective Sourcing
    1. Leverage scale
    2. Supplier relationship management

2. Improve Medical Efficacy by Facilitating Innovation

  • New Technology Assessment
  • Facilitation of product innovation

3. Assure System Profitability through Reimbursement

  • Link product use to bundled payment programs
  • Link patient outcomes to product use



Posted by: Jim & Gene