rob o'byrne & david harrison - logistics bureau group - hospital supply chain challenges...
TRANSCRIPT
1
Hospital Supply Chain Challenges that can be Easily Fixed
Rob O’Byrne & David HarrisonLogistics Bureau
www.LogisticsBureau.com
31,200 + Consulting Projects, 23 Countries, over 17 Years
Logistics Bureau GroupConsulting
Social Enterprise
Education
Watch this space!
Author
9
.6.5
3.1%
2.1%
1.0%
.4
PurchasingInventory Management
Inventory HoldingWarehousing
TransportCustomer Service
7.7%
Hospitals %Sales - lower 20% of Performers
11
Supply Chain Key Drivers
Costs
The SCM Wheel of Fortune
Customer Order Size
Customer Order
Frequency
Supplier Performance
Ranging
The Right Assets
Asset Utilisation
Product Flow
Product Velocity
Appropriate Service
At Appropriate
Cost
13
KPIs – A Sound Approach
Cross functionalStakeholder engagement and review at critical
stages is vital
1Review Strategic Plan
2Review Customer Perceptions
3Identify Strategic Imperatives
4Quantify Current
Performance
5Identify key functions & processes
6Develop KPI Sets & Owners
7Benchmark Performance
& Set Targets
15
Cost v Service Targets WHY BENCHMARK?
% of Gross Sales
<3%
<6%<5%
<6% <6%7%
10%11%
12%10%
12%
<7%
0
2
4
6
8
10
12
Best-in-ClassAverage
Supply Chains that provide a Best In Class serviceoperate at half the Total Supply Chain Cost of their peers
Source: Benchmarking Success, 2015
Half the cost!!!
17
1. The customer is king, but the shareholder is verily the King of Kings.2. Know thine Supply Chain well, how it be formed, how it doth function
and how it may be defined in stories to others 3. Whilst thy flock may number in the thousands, thou must understand the
needs of each and group and care for them, like with like, such as those that bite the hand that feeds them, or those that are timid and must be nurtured.
4. Know thine Supply Chain costs like the back of thine hand.5. Covet thy neighbours customers and woo them with superior offerings.6. Thou shall not make for thine leaders or customers, false images of
thine performance, but be open and honest even if such may incur their wrath.
7. Honour thy customers and suppliers and treat them as thou wouldst be treated, for they put the bread on thine table.
8. Remember the promised delivery date, and keep it thus.9. Know and understand this, that Thou hast more than one Supply Chain,
but not so many as the stars in the sky.10. Keep thine humour at all times, for it will succour thee through adversity.
18
“Good to Great”
• Tips on Procurement
• Develop Key Internal Client Relationships
• Map Staff Capabilities
19
RATE
REDUCTION THRU RATE
Specific Tools Blanket % off
StructureFocus on Middle
line.
KPI triggers.
Suppliers want to see C-Suite
“Industry Average 1/3 leakage or non-compliances to Procurement Contract”Aberdeen Benchmarks
SUPPLIERS VIEW: will reduce if they can see grow of market share or removal of competitors
20
DEMAND MANAGEMENT
REDUCTION THRU DEMAND MANAGEMENT
Simplify specification
“$100 TO $200 million of bottom- line cost reductions. Because demand management affects purchases at their source, savings begin immediately’
SUPPLIERS VIEW: look to your ability to move down the Customers Supply Chain. Eliminate steps and other suppliers in the chain.
21
SCOPE
REDUCTION THRU INNOVATION / SCOPE
Alliance models Leverage the company ethos
Ask the SupplierI NOT P
Promote RFI vs RFPThe “I” will identify
innovation
Bundle multi scopes
SUPPLIERS VIEW: they are looking for “customer of choice” to highlight to future clients
their products and services in action
24
Develop Key Internal Client Relationship
Key to Supplier Relationship Management
Business Alignment Appraisal.
Client –Centered
Engagement.Project
Engagement Mapping