Purchasing and supply chain professionals in hospitals, nursing homes and physician offices are being pressed hard to do more with less. In figuring out how to accomplish this, make sure you're bringing your vendors into the conversation — in particular your distributors, since it's their job to make your supply chain more efficient. Ask:
1. Can you help me analyze data to improve inventory levels and reduce costs? Your goal is to set inventory levels so that you always meet demand without the cost of excess inventory. Ask your distributor to help you make sense of your usage data to align inventory and service schedules with your organization's utilization patterns. Go further and have them compare the benefits and risks of traditional and "low unit of measure" models.
2. How can you help my organization increase product standardization? Press your vendors to work on your behalf in making sure your users stick to your product formulary. Many distributors have customized ordering services and other solutions that allow you to control what products can be selected.
3. Where can I get help with value analysis? Supply chain professionals know there are enormous savings available by selecting and standardizing purchases of high-cost physician preference items — but those savings often can't be realized without a thoughtful and time-consuming value analysis process. Some distributors offer consulting services in this area, allowing you to take advantage of their experiences with many other healthcare organizations.
4. How do we go "green" without spending more? Sure, some "green" products are more expensive, but your vendors can show you what environmentally friendly practices and services can actually save you money. For example, some organizations have slashed waste disposal costs by tasking their distributor with managing recycling.
5. How do I know I'm getting the right price? Ask your supplier what services they offer to make sure you're on the best price tier that your organization qualifies for.
Elizabeth Hilla is executive director of the HIDA Educational Foundation, an affiliate of the Health Industry Distributors Association. The Foundation is devoted to education and research that increases efficiency and effectiveness within the healthcare supply channel. She also serves as a senior vice president at HIDA.
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