Supply chain agility: How leading systems are harnessing scale to uncover value

As the healthcare ecosystem is expanding rapidly, more care is being delivered at diverse sites through new care models. The result is greater supply chain complexity creating more challenges than ever before.

During a Becker's Healthcare webinar sponsored by MedSpeed, Jake Crampton, chief executive officer of MedSpeed, moderated a discussion with three supply chain experts about how their health systems are using scale to generate value and greater agility:

• Conrad S. Emmerich, chief procurement officer, Advocate Health (Charlotte, NC)
• Sara Henderson, vice president, supply chain, Avera Health (Sioux Falls, ND)
• Mike Hopkins, vice president of supply chain, Northwestern Medicine (Chicago, IL)

Five key takeaways were:

1. Interconnectedness is the key to successful supply chains. Organizations with interconnected supply chains have the visibility required to deliver supplies, pharmaceuticals and labs when and where they are needed. Avera Health has created an integrated logistics network to achieve this level of connectivity. "Sometimes individual hospitals feel like they are isolated on an island," Ms. Henderson said. "You need to share experiences, products and knowledge. Interconnectedness is an organic way for a system to stay aligned."
   
   
2. Standardization improves systemness and integration. The Northwestern Supply Chain Operating System allows all facilities at Northwestern Medicine to operate in the same way, creating a strong foundation for optimal performance. "Our goal is to have standard work for everything with some customization," Mr. Hopkins said. "We operate in the same way 85% to 90% of the time, using identical systems and processes. We are now getting the whole organization to look at things like we do — to work together as a team and eliminate silos."
   
   
3. Technology plays a pivotal role in supply chain integration. "If you can align on technology, it's the ultimate integrator," Mr. Emmerich said. A good first step is to evaluate the organization's supply chain partners and see where it makes sense to combine them. "You can't assume that technology that works in one place will work everywhere," Mr. Emmerich added. "You need to be thoughtful about the next steps and who your partners should be."
   
   
4. Strong partnerships and shared vision can curb supply chain complexity. “The more we can get a partner to be part of our supply chain from the start to the end, the more efficient and effective it is for everyone at the end of the day," Mr. Hopkins said. All parties must envision what they want to accomplish and identify solutions for all involved. For a new integrated supply chain service center, Avera Health has had to create alignment on a shared vision amongst many constituent groups, including internal teams, distributors and logistics providers. "We pulled together 12 different departments in Avera to make this happen," Ms. Henderson said. "We hope to create efficiencies and deliver care models to individual hospitals. Our own logistics team and courier through MedSpeed have been able to deliver in situations when none of our other partners could."
   
   
5. The future of healthcare is changing, and supply chain needs to be agile. “Healthcare is transforming to keeping people healthy rather than treating disease,” Mr. Emmerich said. “How can we take data points created around wearable devices to ensure supply chain can match our caregivers in keeping people healthy? We have to always ask ourselves, how does supply chain align with the future of healthcare?”

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