Three Hidden Risks in Your Supply Chain
We all think our supply chain is humming along with no perceived dangers lurking in our value streams, except this thinking couldn’t be farther from the truth. We are seeing numerous supply chain risks lying beneath most healthcare organizations’ supply chains that can be a danger to your hospital, system or IDN’s financial health.
The first risk is over-standardization of the products, services and technologies you are buying that are costing your hospital, system or IDN thousands of dollars a year in unnecessary and unneeded cost. This is happening because of the misunderstanding that one size fits all customers, when, in fact, customization is the secret to having the lowest total supply cost.
The second risk is bulging inventories that at some hospitals can exceed two million dollars in safety stock that is two years old. As a result of this, damaged, out-of-date and unreliable products end up being used in medical procedures. Consequently, these hospitals are risking multi-million dollar law suits from medical misadventures that are directly caused by these old and outdated products.
The third risk is over-specifications of the products, services and technologies that you buy. I like to call this catalog buying! If you haven’t identified the exact functional specifications for the products, services and technologies that your hospital is buying (and are accepting what your department heads say are their specifications), then you are buying too much feature-rich and over-engineered stuff that you don’t need at all. Wouldn’t it be better to get the specs right the first time!
In a time when healthcare organizations are looking to reduce their cost even further and improve their quality (or they won’t be paid by third parties), the hidden risks in your supply chain need to be eliminated, and purged from your value streams.
To do less is risking the short and long-term financial fitness of your supply chain.
Your Partner In Savings Beyond Price™,
Bob Yokl
Robert T Yokl
Chief Value Strategist
Strategic Value Analysis® In Healthcare
800-220-4274
P.S. We have just announced our fall 3-day Certified Value Analysis Leadership Course that will be held on November 4th to 6th, 2008. Our attendees tell us that if you are looking to start-up, re-invent or re-energize your supply value analysis program this is the course for you. Our early bird special rate ends September 15th, so sign up now to save $200.
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