Having a clear direction is one of the most important, and sometimes challenging, duties of a new supply chain leader, writes Luis Martinez, director of member services at Dallas-based MD Buyline.
He offers five best practices for supply chain leaders, new and old, to help steer organizations in the right direction.
1. Increase efficiency maximization and inventory optimization. Supply chain leaders should order materials to match the volume used without compromising patient safety, Mr. Martinez writes. At the same time, the materials department should work to minimize excess inventory, which can directly impact the bottom line. Effective leaders will know what is going on in this department, and if not, he or she will partner with someone on the materials team to get a rundown of what is happening and make decisions for change from there.
2. Look at purchasing controls and automation. "If your hospital(s) are still using Excel to create purchase orders, you need to immediately implement an electronic system for orders," according to Mr. Martinez. Such automated systems help with inventory management and provide electronic data interchanges, allowing hospitals to electronically track orders, confirmations and deliveries. Mr. Martinez says automated systems also set hospitals up for future success in building a clean Item Master file.
3. Create an approach for strategic sourcing. The realm of purchasing responsibilities for supply chain leaders is growing, moving from capital and consumables to managing the purchases of IT, purchased services and service contracts. A supply chain leader should identify and define the role their group purchasing organization should play in the supply chain and any desired flexibility regarding GPO compliance, Mr. Martinez suggests.
4. Work with, and gain buy-in from, clinical teams and senior leadership. By involving clinicians in decision-making, they are more likely to understand the goals and strategies of the materials management team, writes Mr. Martinez. As the supply chain team oversees materials that are used in almost every department throughout the hospital, certain projects require a collaborative effort from multiple departments and senior leadership. Such projects and initiatives should be integrated into an organization's strategic plan, according to Mr. Martinez.
5. Gather data. Data shows trends and opportunities in a department, providing the foundation for understanding savings opportunities, according to Mr. Martinez. Additionally, providing data to senior leadership and other departments demonstrates the work and progress made in the supply chain department. Capturing and analyzing data helps supply chain leaders track improvement and identify areas for growth to help meet departmental objectives.
"By putting these best practices in play early or re-establishing them during your tenure as a supply chain leader, you are building a foundation for which you can take your department to the next level of supply chain optimization while creating and executing your department's vision," concludes Mr. Martinez.
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