dsc2006 hospital supply chain project slides

Annabel SeahIntroduction

TrendsSignificance

Nurul Sahhidah

asEan Xiang’s

Boss

Teo Shu Lingas

HR Manager

Annabel Seahas

Performance Appraiser

Tan Vanessaas

Safety and Health Auditor

What is supply chain in hospitals?

Introduction Trends Overview

of Articles

Improve Within Scope

Improve Beyond Scope

Manage rising costs

Conclusion

With the aid of technology

Smooth running of hospital

Achieve a competitive edgeOptimise patient

satisfaction

IMPORTANCE?• Contribute to efficiency of hospital

• Ensure inventory levels kept up to date

• Provide quality healthcare service to

patients

• Especially important in the healthcare

industryIntroductio

n Trends Overview of Articles

Improve Within Scope

Improve Beyond Scope

Manage rising costs

Conclusion

Trends?

Introduction Trends Overview

of Articles

Improve Within Scope

Improve Beyond Scope

Manage rising costs

Conclusion

Increasing Costs

25-30% of hospital expense

Introduction Trends Overview

of Articles

Improve Within Scope

Improve Beyond Scope

Manage rising costs

Conclusion

Demand Order

Supplier Logistics

Inventory

Articles

What hospitals can do within

their scope

What hospitals can do beyond

their scope

• RFID Technology• Improve

Inventory Management

• Point-of-Use Hybrid Policy

• Collaborations• Group Purchase

Orders

How to manage

rising costs with

improved SCM

• Transformation Model

• Knowledge Management

Introduction Trends Overview

of Articles

Improve Within Scope

Improve Beyond Scope

Manage rising costs

Conclusion

What Hospitals Can Do Within

their scopeIntroductio

n Trends Overview of Articles

Improve Within Scope

Improve Beyond Scope

Manage rising costs

Conclusion

RFID Technology

Inventory Management

Point-of-Use Hybrid Policy

RFID Technology

Adopting RFID

How

Benefits

Limitations

Inventory Management Policy (Internal)Policies 1 2 3 4

Description Reorders made based on demand during lead time period

Similar to Policy 1 but considers criticality of drug

Considers whether to replenish based on criticality, expiration window and availability

Similar to Policy 3 but considers inventory level in pharmacy

Results - Better than Policy 1 and 2- Considers criticality, expiration window and availability in deciding whether to replenish stock

- Policy 4 better than 3 as it considers inventory level of main pharmacy

- Led to few local stockouts but greater global stockouts

Meet DOSIS, the ADM!

ADM

How

Benefits

Limitations

What Hospitals Can Do Beyond

their scopeIntroductio

n Trends Overview of Articles

Improve Within Scope

Improve Beyond Scope

Manage rising costs

Conclusion

Collaboration

Group Purchase Orders

Introduction Trends Overview

of Articles

Improve Within Scope

Improve Beyond Scope

Manage rising costs

Conclusion

Collaboration

Introduction Trends Overview

of Articles

Improve Within Scope

Improve Beyond Scope

Manage rising costs

Conclusion

Background:• Healthcare supply chains are more complex than other

industries• Physicians who procure medication have limited OM

knowledge

Aim of Paper:• Better understand nature of collaborations for inventory

management • Implement effective SCM practices

Paper does a review of:• Virtual hospital pharmacy• Outsource non-critical medical supplies• Hybrid stockless method• VMI

Introduction Trends Overview

of Articles

Improve Within Scope

Improve Beyond Scope

Manage rising costs

Conclusion

Limitations• Impact of government

regulatory agencies and GPOs is not clear

• Highly fragmented pharmaceutical hospital supply chain

• Improvements• Accelerate adoption of

strategies like VMI• Future research should explore

how supply chain leaders can emerge

Improvements

• Accelerate adoption of

strategies like VMI

• Future research should

explore how supply chain

leaders can emerge

Introduction Trends Overview

of Articles

Improve Within Scope

Improve Beyond Scope

Manage rising costs

Conclusion

Group Purchase Orders

Introduction Trends Overview

of Articles

Improve Within Scope

Improve Beyond Scope

Manage rising costs

Conclusion

Background:• increasing healthcare expenditures

Aim of paper: • minimise shared supply chain cost, improve efficiency

Approach: • Form GPOs to order in bulk • Determine best number, size, composition of GPOs

Limitation: • Hospitals disagree on coordination costs and

proportions of benefit received• no solution to problems such as determining the

optimal size of purchasing groups under the various different circumstances

• Choice of changing size of GPOs when needed

• Ensure transparency of financial costs• consolidating purchasing cooperation

without having mandatory compliance from hospitals

• recommended strategy would be to adopt the best hospital structure among the GPO that minimises total cost to enhance SCM

Improvement

• Consider elasticity

• Optimal size of GPOsFuture

Research

How to manage rising costs with improved SCM

Introduction Trends Overview

of Articles

Improve Within Scope

Improve Beyond Scope

Manage rising costs

Conclusion

Transformative Model

Foundation

Optimisation

Transformation

Transformative Model

Issue

Limitations

Suggestions

Suppliers Hospitals

Enhancing hospital-supplier knowledge management

Introduction Trends Overview

of Articles

Improve Within Scope

Improve Beyond Scope

Manage rising costs

Conclusion

Improve supplier-hospital

relationship

Issue

Limitations

Suggestions

In Summary…

Annabel

Structured Recruitment Process

Equal Opportunities

Selective Employees

Multi-faceted Training

Good Pay Decisions & Benefits

Comprehensive Compensation

Performance Appraisal & Feedback

Health & Safety Management

Complying with Labour Laws

Study a successful organization and identify the human resource management practices that contribute to its

success.