How do you Compare to your Peers?

We just had two of our Utilizer® Dashboard clients ask us to provide them with a scorecard on their supply utilization management, over the last two years, so that they could discover where they had gaps in their performance.  I thought this was a great idea and I was anxious to see the results.   

Yet, until I actually reviewed the results of the exercise I didn’t realize how important a scorecard could be in identifying and then targeting where a healthcare supply chain organization needs to focus their supply utilization management efforts to get better than just good.

Here are the eight areas of our scorecard rated that we believe are the most important supply utilization indicators to be tracked for success:

Moreover, our methodology for this rating system was to compare these measurements against all of our clients in the same categories based on a statistical scale of 100 being the best in class.  It was a pleasant surprise to find that the two clients who requested our supply utilization management scorecard didn’t fall below the 75^th percentile in any category that we measure.  In most categories, these clients were at the 90^th or 95^th percentile which was the motivation for them signing on to our Utilizer® Dashboard subscription service in the first place: To Improve their utilization management in all areas of their supply chain expense operations.

We also provided these same two clients with specific utilization supplies and purchase service categories (Custom OR Packs, Urologicals, IV sets, freight, postage, pacemakers, etc.) where they were “best in class” vs. their cohort group, which gave them even more particulars on how they stacked up against their peers. 

Overall, I thought this exercise met its intended goal of shedding light on what was working or not working in our client’s supply utilization management program, thereby, providing these clients with specific targeted savings opportunities for this current fiscal year.    

Now that you understand this rating system, how do you compare to your peers?  If you know the answer to this question then you don’t need to read further. However, if you aren’t currently comparing yourself in all areas of your supply chain operations to your own cohort group then you are flying blind. To put it bluntly, you will never reach the level of “best in class” in any supply chain category you choose to excel in without first investing the time, money and resources to do so.  You can’t win the game without first knowing the score!

Filed Under: savingsblog • Supply Chain • Utilization Management

Tags: Scorecard • Supply Utilization Management • Utilizer Dashboard