PEOPLE & OPINIONS


threats to clinical care, revenue, opera- tions, clinical quality, patient and staff experience, etc. The items in the “high volume, high risk” top right box are the highest priority and should command focus in the next 3 stages.


• Supplier Organizations: Gain insight into your customer’s critical products and priorities.


Stage 2 – Speaking a common language across the industry • Purpose: Enables data synchronization, aggregation, and communication across the industry. Demand data from a single customer is not enough to provide direc- tion for suppliers; they need data from a critical mass of the marketplace to respond effectively.


• Provider Organizations: While item masters today may assign unique local or proprietary product codes, it is imper- ative to transact data on products using identifiers that are common across the industry. SMI recommends use of the GS1 global trade item number (GTIN), although use of any of the industry stan- dard codes that are compliant with the .. Ds unique device identification rule will suffice, i.e., the TI, ICC- IC or the ICC IT-12. • Supplier Organizations: Assist your customer by helping them gain access to the GTINs for your products.


Stage 3 – Understanding inventory and consumption in real time • Purpose: Line of sight into inventory levels and consumption rates directly translates into understanding how much you need to order and provides critical information for manufacturing produc- tion schedules.


• Provider Organizations: Create real- time visibility into your inventory. Inventory should be digital, and con- sumption should be real time. This may be a significant shift for some organia- tions, so focus efforts on your top prior- ity products defined in tage 1.


• Supplier Organizations: Prepare to receive data from provider organiza- tions and set up systems and processes to review and react to the data.


Stage 4 – Sharing information using data and metrics • Purpose: Data shared between trading partners will allow demands signals to be identified and used to enable busi-


ness continuity for both providers and suppliers.


• Provider Organizations: Share data on inventory and consumption via elec- tronic channels with your suppliers on a regular and continuous basis. • Supplier Organizations: As you aggre- gate and interpret demand signals across your customer base, provide feedback to the providers regarding your efforts and ability to meet their demand.


Demand shapers eyond addressing the fundamental steps above, we recognize that multiple factors exist that shape demand. While these factors cannot stand alone, they can improve the precision of the demand sig- nals generated by provider organizations. As we consider, as an industry, how to best incorporate these into our demand planning rubric, we should also build capabilities for trading partners to share this information.


Internal data sources • Service Line Planning & Projections • Anticipated or budgeted volume • Anticipated consumables associated with capital equipment purchase • Physician recruitment or departure • Strategic decisions – what’s being marketed


 Clinical useClinician behavior  Clinical volume - inpatient census and outpatient clinic volume


 Clinical protocols that dictate how product is being used • Staff behavior relating to use • Procedural schedule • Workforce data


External data sources • School schedules  Payerbenefits trends • Population-level claims data • Search engine data  easonal variation u, weather, pollen count, etc.


• Population growth or shrinkage by age group


• Shared inventory at the state and national levels


To accomplish this important change, providers must take positive control of consumption data and forecasts, and then establish methods to communicate infor- mation to suppliers for use in improving production schedules and inventory in


channel. To do this, we must all speak a common language by utilizing data standards that support aggregation of information to provide critical mass sufficient to support meaningful action by supplier in production planning and channel partners for inventory visibility. This work will start small but needs to advance to scale into advance planning systems that are capable of managing thousands of SKUs. These advance plan- ning systems will provide data for skilled inventorydemand planners to use in managing the end-to-end supply chain with distribution and manufacturing supply chains. HPN


Authors Team Leads • Karen Conway, Global Healthcare Exchange (GHX)


• Tom Harvieux, BJC HealthCare


Project Consultant • Li Ern Chen, MD, Li Ern Chen, MD, LLC


Contributors • Jeffrey Bennish, McKesson Corp. • Peter Brereton, TECSYS • Eric Cummings, Syft • Michael DeLuca, Prodigo Solutions Inc. • Sean Farley, Virginia Mason Medical Center • Elizabeth Hilla, HIDA • Jack Koczela, Froedtert Health • Keith Lohkamp, Workday • Vicky Lyle, Owens & Minor, Inc. • Eric McGlade, VPL • Lori Pilla, Mercy Health System • Maggie Sartori, Allina Health • Bill Selles, Spectrum Health System • Lee Smith, Syft • Ruben Taborda, J&J Hospital / Distributor SC Solutions


• Nathan Turnipseed, Veteran’s Health Admin- istration • Donna Van Vlerah, Parkview Health • Mark Zacur, Owens & Minor, Inc. • Nancy Anderson, SMI • Carolyn Huntington, SMI


SMI® All rights reserved. This publication is available at no charge. Contents of this publication may be reused or reproduced, in part or in whole, only with the specific written acknowledgement of the Strategic Marketplace Initiative as the original author, referencing the website www.smisupplychain.com.


hpnonline.com • HEALTHCARE PURCHASING NEWS • January 2021 49


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