PEOPLE & OPINIONS


based value develops a decision-making formulary and implementation framework for supplies, services and equipment. Contracting and sourcing: Getting expo- sure to an organization’s contracting and sourcing strategy is a foundational com- ponent of a supply chain rotation. Supply expenses can be as high as 30 percent of an organization’s operating budget. With this procurement volume comes hundreds of vendors and thousands of contracts. Executing this effort internally is incredibly involved and expensive. Because of this, many healthcare systems nationwide use group purchasing organizations (GPOs) for some aspect of their purchasing strategy. For an administrative fellow, under- standing the purpose of a GPO and how your organization leverages their services is essential, especially given the financial implications of the relationship. A GPO has the luxury of negotiating vendor terms on behalf of multiple buyers. Leveraging the collective demand results in contract negotiations that have more favorable pricing, length of term and utilization commitments. After the vendor contracts are established and the products have been sourced, the net steps are to define the item attributes and input the product information. Informatics: The informatics pillar is


another fundamental element of the supply chain rotation. At a macro level, controlling the functionality of the enterprise resource planning software and the integration with the other systems is necessary for clinical worflow. Having a team dedicated to ana- lyzing and implementing system updates will help end users utilize the information strategically. At a more granular level, this pillar is responsible for maintaining a robust and accurate item master. Storing relevant product information enables prod- ucts to be tracked throughout the product life cycle. All of these activities lead to data integrity in the form of an accurate, com- plete and consistent enterprise resource planning system, which can be leveraged by other supply chain associates. Operations and logistics: The final pillar of a supply chain rotation is the operations branch. The primary functions of this group are distribution, inventory management and clinical support services. Takeaways for a fellow in this part of the rotation are internal and external logistics strategies, inventory optimization techniques and the defined aspects of the ordering process. In the clinical logistics setting, the operations’ functions close the loop on the purchasing


Photo credit: md3d | stock.adobe.com


Programs reflect critical pillars of performance improvement


process by defining who does the reorder- ing, at what frequency, what they need to order and how much. Whereas the external logistics of the operations’ activities are an opportunity for healthcare networks to partner with vendors to execute aspects of this function. There are many benefits of outsourcing the distribution from manufacturers to the hospital, such as quicker delivery times, consolidated shipments, lower space uti- lization and lower employee utilization to manage manufacturer relationships. Meeting with the primary distributor account manager helps an administrative fellow to further understand the role and requirements of the hospital-distributor relationship. There are significant costs associated


with this department in the form of labor and supplies; these expenses come with cost savings opportunities. HonorHealth has an Operations Excellence and Solu- tions team that is dedicated to addressing these cost savings opportunities. This team implements initiatives using design thinking, lean six sigma and project man- agement techniques to create value for the clinical and non-clinical staff. A primary example is inventory optimization analy- sis, which helps departments manage and procure supplies based on historical data, as well as forecasted volume. This careful analysis saves time and money for clinical and administrative staff. Once again, col- laborating with the clinical team to create buy-in and sustain comfortability is a key lesson for the fellow.


COVID-19 — a clarion call s the COID- pandemic has high- lighted, the healthcare supply chain is complex and interdependent. For healthcare organizations, a clinically integrated model and strategy is critical when sourcing and distributing supplies. As an administrative fellow, getting exposure to the roles and responsibilities of the various supply chain functions will help build a comprehensive under- standing of operations. I want to than the HonorHealth Supply Chain Shared Services’ associates for accommodating my rotation and teaching me so many valuable lessons. This education is a testament to the culture and leadership of the HonorHealth supply chain orga- nization. HPN


Zachary Tudor is an administrative fellow at Phoenix-based HonorHealth, a finalist for the 2020 Supply Chain Department of the Year by Healthcare Purchas- ing News. Tudor’s profes- sional experience spans medical device marketing to industrial engineering


and software consulting. He holds a Bach- elor’s in Supply Chain Management from Purdue University and a Master’s in Busi- ness Administration from the University of Arizona. His professional mission is to use his cross-functional experience to become an organizational leader that creates value and a culture of collective fulfillment for an organization and its employees


hpnonline.com • HEALTHCARE PURCHASING NEWS • February 2021 61


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70