Supply Chain Data and MetricsPresenter:

Vincent Matozzo, Senior Director, Strategic Sourcing,

NYU Langone Health System

Tom Stewart, Director SCM Performance Consulting,

Mayo Clinic

Tony Ybarra, Senior Vice President CHC Supply Trust,

Community Hospital Corporation

LEARNING OBJECTIVES

1. Outline best practices for identifying key metrics for measuring supply chain performance beyond cost reduction.

2. Explain the importance of transparent data and how new technology is improving the opportunities for obtaining it.

3. Identify the organizational structures and actions that stimulate a data-driven decision making culture.

Leveraging Analytics to Deliver

Greater Value to the PracticePresenter:

Tom Stewart

Director SCM Performance Consulting

Mayo Clinic

- Value creation is getting more complex

- The future is a digital supply chain

- Clinically integrated supply chain

Key Messages

Logistics Business Solutions

Card

iolo

gy

Gastr

oente

rolo

gy

Labora

tory

Pharm

acy

Radio

logy

Surg

eryCategory Management

Inventory Management

Procure to Pay

Operations

Supply Chain Work Units

Vert

ical In

tegra

tion

Horizontal Alignment

Practice Leadership Teams – Specialty Councils

Center of Excellence – Practice Intelligence & Analytics

Clinically Integrated

Supply Chain

MATURITY

VA

LU

E

Where We’ve Been Where We’re Headed

- Sit with customer and

establish relationships

- SCM single point of contact

- Supply & service financial

dashboards and KPIs

- Focus on ‘where is the money’

- Evaluate Price, Volume,

New Technology

Integration- Utilization management

based on formularies &

clinical protocols

- Procedure cost analysis

benchmarks across clinicians

- Reduced supply variation

- Managing to reimbursement

- Supply & technology teams

Utilization

Total Cost

of Care- Focus on total cost of care

- Link supply utilization to

patient outcomes

- Review product variation for

patient need vs. clinician

preference

- Define and execute SCM

digital strategy

- Deliver predictive and

prescriptive analytics

Financial Performance Track: Panel: Supply Chain Data and Metrics

Vin Matozzo

Senior Director Strategic Sourcing & Value Analysis,NYU Langone Health

Clearing the Smoke and breaking mirrors (Myth-busting your data)

Don't assume that a single multi enterprise solution can provide end-to-end visibility across all

supply chain domains

Yes, suppliers will be as bold to claim it ….

One size doesn’t fit all

Select a solution that supports your business strategy and use case, and then create as evaluation criteria

Focus on: critical capabilities and weighting criteria.

Move Beyond “an ERP Only Mentality”

“Linking Systems” is often far more effective than trying to find end to end, out of the box

Keep a laser focus on business goals, and align the PROs and CONs of IDN solutions

with them

Develop a Laser Focus

Move Beyond an “ERP only mentality”

02

03

01Build a case

01

Define the goals and gain

alignment

02Operational assessment

03

The goal is to gain executive commitment, alignment and direction for the journey and key talent. Mapping key stakeholders is effective in limiting organizational pushback.

Operational assessment• What are burning issues, challenges and missions the system

needs to evolve? • What are the primary barriers? • Which requirements are critical to build a business case on?

Develop a Laser Focus on your Final Product and Business Outcomes

Building a solid case for best in class visibility requires the proper blend of "science" (actual fact-based data) and "art" (emotional and political). The proper blend of science and art significantly improves the odds of project success because it addresses the strategic, operational, technical and organizational aspects of an initiative — not just the financial impact.

• Savings

• Match Exceptions

• Contract

Management

• Monitoring

• Monthly Purchasing

Operational Reports

• Daily Supply Chain

Operational Reports

• Inventory Management

Reporting

• Data Visualization

• Spend Analytics

• Clinical Utilization Analytics

• Financial Impact Analysis

• Inventory Analytics

• Trend Analytics

• Scenario Analytics

• Analytical

Infrastructure

• ETL (Extract

Transform Load)

• Data Enrichment

• Item Add/Maintenance

Process

• Item Categorization

• Item Request User Training

• Closed Loop process on

contract Management

• Contract Upload Audit

• Manage Contract Master• EDI interfaces & APIs

• Contract databases

• Online catalogues

“Un-packing” Supply Chain Analytical and Data Inputs

Contract Management

Item Master Management

Process Improvement

Data Architecture

Analytics

Operational Reporting

1Descriptive Analytics

Descriptive analytics aggregates raw data

from multiple data sources to give valuable

insights into the past. These findings simply

signal that something is wrong or right,

without explaining why.

2 Diagnostic AnalyticsHistorical data can be measured against

other data to answer the question of why

something happened. Thanks to diagnostic

analytics, there is a possibility to drill down,

to find out dependencies and to identify

patterns.

3Predictive AnalyticsThe use of findings from descriptive and

diagnostic analytics to detect tendencies,

clusters and exceptions, and to predict

future trends. This is a valuable tool for

forecasting (highly dependent on data

quality).

4 Prescriptive AnalyticsPrescribe what action to take to eliminate a

future problem or take full advantage of a

promising trend

The ROI and business case

Data transparency increases and enables collaboration that generates benefits and efficiencies:

• Return on Investment — Reduced days of stock on hand through throughout the value chain, providing the confidence to reduce physical inventory; optimized inventory across the value chain to minimize unproductive capital tied up in excess stock.

• Hard Savings —Collaboration and real-time data insights improves speed to react to market, preventing stock-outs Minimizing constraints allowing time to investigate strategies like bulk buys & modeling scenarios with Suppliers

• Efficiencies — Lower inventory holding, near real time views of aggregate demand across suppliers and the system increase productivity by reducing human error and utilization of inefficient spreadsheets and minimizes a culture of emails.

Supply Chain Data and MetricsPresenter:

Tony Ybarra, Senior Vice President CHC Supply Trust,

Community Hospital Corporation

• Understand the functional requirements necessary to achieve scalable data integrity

• Understand the data analytics necessary for collaboration with all sourcing stakeholders, from conception to execution

• Learn the process to monitor contract compliance and realized savings