Regional Healthcare System
Client is a comprehensive regional healthcare system servicing communities in the Northeast United States.
Client faced several issues in its supply chain operation:
- Point of Use Supply Management and Replenishment was not controlled universally through the organization
- Inventories were not managed optimally
- Key data files required scrubbing and the existing Material Management Information System was underutilized
Management sought an independent assessment of its supply chain operation in order to optimize materials management, achieve economies of scale, reduce duplication of effort, and improve patient satisfaction.
What Sedlak Did
Placed a team consisting of Inventory Management, Process Flow and Healthcare Supply Chain Operations experts on site for a week of intense interviews.
Used observational tours, personal interviews and analysis of requested data sets to identify process improvement opportunities and hard dollar savings.
Delivered a detailed Game Plan to address specific opportunities related to:
- Inventory management and cash flow optimization
- Point of Use replenishment improvement
- Inventory Reduction
- FTE optimization
- MMIS cleanup
Game Plan recommendations were expected to achieve:
- $120K One-time Cash Flow improvement and $50K annual savings from implementation of Logical Unit of Measure (LUM) programs
- Implementation of two-bin replenishment in nursing areas and other departments reduced labor and waste
- Storeroom inventory reduction of 3-5%
- Ongoing FTE labor cost reductions of $30-$50K per year
- MMIS Operational improvements of >$100K per year based on error reduction, elimination of multiple supply chain interventions, minimization of annual inventory variances and write-offs