Before You Take the Plunge: Fred Crans explores benefits/risks of Consolidated Services Centers (CSCs) in Healthcare Purchasing News (2 of 2)

May 3, 2017 Topics: Media, News

Pressure to save costs in the supply chain is driving some Integrated Delivery Networks (IDNs) and Regional Purchasing Coalitions (RPCs) in the provider space to consider managing their own distribution of supplies through a consolidated services center (CSC). Although cutting out “the middle man” seems intuitive, Sedlak's Fred Crans notes in a two-part series in Healthcare Purchasing News that there are a multitude of inputs that must be considered before deciding to move forward with a multi-million dollar investment.  

In the May issue, Fred continues an exploration of these inputs with healthcare industry experts who have been involved in these decisions. These include considerations for geography, internal business acumen, expected cost savings, key stakeholder support, and alternate uses for the money that would need to be put into a CSC. Also critical is developing performance metrics.

“Service levels have to be perfect,” says Bob Simpson, president and CEO of LeeSar. “Surround yourself with a senior staff that knows what it is doing.” Is it very unlikely that you can simply “repurpose” existing personnel to the new roles required for a centralized operation. You need expertise, and expertise costs money.

Read the article here:

Read Part 1 of the article here: 

Subscribe For Insights

"*" indicates required fields

By clicking submit below, you consent to allow Sedlak to store and process the personal information submitted above to provide you the content requested. You can unsubscribe from these communications at any time.

Recent Posts
View All

In this episode of the Unboxing Fulfillment podcast, host Harry Drajpuch interviews David Teeple, Director of Client Services at Sedlak Supply Chain Consultants. Sedlak is a comprehensive supply chain and distribution logistics advisory firm that has been in business since 1958.

As a supply chain professional, you need to better understand how current automation movements can impact your business. This video,  which is a recorded session from Sedlak’s 2023 virtual event series, Balancing People, Systems and Automation, looks at which processes are being automated within the supply chain, as well as the importance of data, and […]

If you went to ProMat in Chicago this spring, you saw hundreds of robots performing distribution tasks including storage, retrieval, pick assist and sortation. At Sedlak, we are fortunate to be brought up to speed on these technologies on a regular basis when vendors schedule a lunch hour with us to demonstrate their offerings and […]

It was great to see that ProMat was so well attended this year! After the past few years it was good to reconnect with friends and colleagues.