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PRODUCTS & SERVICES
a steady growth of our freight spend mov- “Freight has [traditionally] been absorbed Florida’s Orlando Health System has also
ing from Rockford Health System paid, to into the cost of goods or prepaid and added partnered with HLS MedFreight and was
TRIOSE-managed, which gives us the ad- to the invoice at the supplier’s rate,” de- able to log significant savings. Randy Hayas,
vantage of their negotiated rates. Once you scribed Wooster. “Most organizations rely on corporate director of materials management,
are able to track and monitor the costs, you the overall vendor community to control commented, “I think one of the problems in
can get on the path of continuous improve- their freight cost and are often not well served some systems is that freight is not consoli-
ment,” added Geiger. by the ‘free freight’ offered by the seller. Just dated. So you don’t know how big the freight
Renown Health, Reno, NV, began work- because the seller includes ‘free freight’, does cost is. One of the things Orlando Health had
ing with TRIOSE in May 2006, and last not mean there is no cost – it’s going to be done a few years earlier was to consolidate
fiscal year realized savings of more than covered somewhere. We’re not just buying inbound freight costs, so we knew how big
$100,000. Sharon McClure, purchasing su- trocars, we’re buying delivered trocars.” it was.” Starting from a spend of $893,000
pervisor, explained, “TRIOSE has the Hospitals should apply the concept of per year, Orlando Health has experienced a
team and ability to provide special report- “Activity Based Costing” where freight savings of about $272,000, or 30 percent to
ing so we can charge the freight expense costs are assigned to the departments that date with HLS MedFreight.
to various departments. We are contacted create them, he suggested. “It’s easier to Explained Paul Vincennie, senior imple-
when an opportunity is found, i.e. exces- manage the cost if it is assigned and visible mentation specialist, Orlando Health, “When
sive next day air charges from a specific during the transaction compared to back- you’re doing freight management by your-
vendor.” tracking at the end of a month. Advantages self you don’t really have any control over
Aurora Health Care (Milwaukee, WI) – of a good 3PL partner go beyond a good what the vendor is going to be doing, how
which encompasses 13 hospitals, 140 freight rate to include accurate and harmo- they’re going to be shipping it to you, what
clinics, 110 regional pharmacies and nized invoicing, automated freight expense discounts they’re appreciating and you’re
Wisconsin’s largest visiting nurse associa- reporting and consistent benchmarking,” not. With the HLS way of doing things, it’s a
tion – was one of HLS MedFreight’s origi- said Wooster, adding, “GPO representa- third-party billing; we tell the supplier, ‘this
nal customers. According to Stuart Wooster, tives and 3PL suppliers can help provide is the number to charge’, and we receive the
manager, corporate purchasing, “Like most any needed education and even provide an benefit of discounted freight costs. So we
health systems, Aurora wasn’t measuring analysis of your situation. They can help have more control over it.” HPN
freight costs as well as we could have. If start the process but it is one that we as sup- For the full story, visit www.hpnonline.com/in-
you don’t measure it, you can’t control it.” ply chain leaders must own.” side/2009-11/0911-PS.html.
The FIRST STEP
in reprocessing a
flexible endoscope.
Open the pack, remove the
Bedside Kits from
hand pad and wipe down
the insertion tube, then
Cygnus Medical
Now available
discard the pad. Suction up
in 500ml pack! the pre-diluted enzymatic
detergent until the pack is
empty and discard the
empty pack.
To learn more about this
and other endoscopic
products, please visit us
CALL
at www.cygnusmedical.com
Cygnus Medical
to order:

800.990.7489
10
extension 1
www.cygnusmedical.com 800.990.7489
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0911-PS-Freight.pmd 57 10/13/2009, 10:54 AM
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