What does the healthcare supply chain have in common with Elvis? | GHX

Karen Conway

Executive Director, Industry Relations
Wednesday, April 20, 2011

What does the healthcare supply chain have in common with Elvis?

Like Elvis, it’s left the building, or if not, it should be heading for the door. That according to Vance Moore, president of Resource Optimization & Innovation (ROi), the supply chain division for Sisters of Mercy Health System. Vance says the supply chain can no longer function within the four walls of a hospital or healthcare system, but needs to move out to where care will be increasingly delivered – in the home, in retail clinics, in ambulatory surgery centers, all places that are often more convenient and certainly less expensive than the acute care setting.

Moore was speaking during the closing session of the GHX Healthcare Supply Chain Summit along with the leaders of the other two organizations ranked in the top three of Gartner’s ”Healthcare Supply Chain Top 25 for 2010”: Owens & Minor and Johnson & Johnson Healthcare Systems.

The following are some of the points made by each of the speakers at the session:

Craig Smith, CEO, Owens & Minor (O&M)

Value in the healthcare supply chain used to be defined by product cost; today, it is more about the level and kinds of services offered.

O&M is looking to collaborate with manufacturers and hospitals to shift the focus from product and unit cost to efficiency and productivity.

Michelle DeJonge, Vice President, Global Supply Chain, Medical Device & Diagnostics (MD&D) , Johnson & Johnson 

MD&D is learning from the supply chain best practices in place at Johnson & Johnson's consumer and pharmaceutical businesses.

MD&D is following Walmart’s example and creating sales and supply chain teams that focus on what the customers want, not what J&J thinks the customer wants.

 

Vance Moore, President & CEO, Resource Optimization & Innovation (ROi), a division of the Sisters of Mercy Health System.

SG&A costs are much higher for healthcare manufacturers than those in other industries, and hospitals and other healthcare providers have an obligation to help manufacturers by becoming lower cost customers to serve.

Healthcare organizations need to pursue the use of supply chain standards, not for standards sake, but rather to facilitate better business processes, such as achieving the perfect order.

Check out the “Live from the Summit” site to learn more about this year’s event. And make plans now to join GHX in Orlando, May 7-9 for the 2012 summit. 

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