In a healthcare environment where everything has become digital, most medical-surgical product manufacturers have transitioned from manual data entry to electronic, automated processes for customer orders.
Are your customer service reps still physically keying in orders while your competitors and peers have put into place touch-less order processes? Do your customers consider your competitors and peers easier to do business with because their orders flow electronically via EDI? If so, consider this:
Within many healthcare organizations, the supply chain department operates in a silo disengaged from frontline caregivers. In the case of McLeod Health, this led to $3.2 million a year in lost revenue as a result of not capturing product usage at the point of care. To address this issue, McLeod’s senior leadership assembled a multidisciplinary team comprising administration, clinical leaders, finance, information systems and procurement, to analyze supply chain processes, identify points of revenue leakage and put processes and systems in place to address them.
In the olden days (think any time before 2010), the healthcare suppliers getting connected to the GHX exchange were pretty much medical-surgical manufacturers and distributors. And while the supplier community connected to GHX, and the provider community as well, continued to grow, the products that were being purchased electronically through GHX tended to be those we classify as disposables and consumables. Maybe it was just that healthcare needed a starting point to think about where and how to automate purchasing, and the area of a hospital most able to move toward e-procurement was the department formerly known as materials management.
Each year, Supply & Demand Chain Executive announces the winners of its “Pros to Know Awards,” which recognize the industry’s top supply chain professionals. GHX has a long history of having its executives featured on this prestigious list — and this year is no different. Steve Cochran, CTO at GHX, was selected for the 2016 award for his role as the “brains” behind the GHX technology vision and roadmap.
Next week, nominations open for the 2016 GHXcellence Awards. The expanded array of awards reflect the evolving nature of supply chain and the role it plays in improving both costs and quality in healthcare. GHX still honors the Best 50 hospitals and healthcare systems for the work they are doing to automate processes and reduce costly exceptions. The value of automation and accuracy remains foundational and should never be taken for granted. After all, that alone led to GHX and its customers documenting more than $5 billion in savings in less than five years. Today, we continue to document savings, but now we are able to also take into account the addition of more mature supply chain practices, including those recognized in the expanded awards program.
There are three things a market-driven healthcare manufacturer absolutely needs in order to be effective at driving product strategy and growth. It goes without saying that these organizations have such foundational elements as a clearly stated vision, mission and strategy, as well as a healthy corporate culture which embodies collaboration, communication and trust. Once those elements are established, in 2016, the big three are the technology tools, processes, and drumroll, data!
For the last few years, the team at GHX has made yearly predictions for the healthcare supply chain – often anticipating major trends, challenges and opportunities for the industry. And, most times, I’m proud to say we’ve been fairly accurate with those predictions! In 2016, we’re continuing that tradition with the release of our top five trends for the year
At GHX, like many of you, we’ve been engaged in weeks of strategic planning for 2016. The opportunities in front of us and for our customers are significant. But before I get to how I see 2016 evolving for the healthcare supply chain industry, I want to reflect on the past 12 months and the major themes, events and changes that moved the healthcare industry in 2015.