Savings Beyond Price™
Innovative Supply Savings and Quality Solutions That Work
by Strategic Value Analysis® in Healthcare
Did You Know...?
That Value Analysis Was Developed Back In the 1940's After World War II as a Way to Find Lower Cost but Higher Quality Alternative products and methods. This was Due to the Lack of Material Resources At The End of The War.
Savings Beyond Price -Weekly eNewsletter - April 7, 2010
Robert T. Yokl
President & Chief Value Strategist
If it’s Important - It’s Worth Measuring!
Greetings,
Small and large hospitals, systems and IDNs are gradually coming to recognize that if it is important, it’s worth measuring their supply chain performance. Otherwise, how would you know if you are moving ahead or falling behind on your supply chain performance?
The best way to do so is to develop key performance indicators (KPI) to define, measure and then evaluate how successful you are in meeting your supply chain organization’s goals and objectives. Your KPI can be a benchmark, target or time-frame for achieving your goals and objectives.
For example, you could define a KPI to “reduce stockouts by 1% over the next six months”, which is measurable and outcome driven. Then track this KPI on a monthly basis to ensure that you are on target to meet this goal.
I would suggest that you develop two or three KPIs for the following supply chain operational areas to get started on this journey: (i) inventory, (ii) purchasing, (iii) warehouse, (iv) distribution, (v) shipping and receiving, (vi) central sterile supply, (vii) print shop, (viii) transportation, and (ix) value analysis.
To make it easy for you to evaluate your KPIs, I would recommend that you design a simple scorecard to track and trend your KPIs month to month and year over year. This way you can see your progress against your goals and objectives in one centralized and easy to read report.
One of our clients tracks 19 KPIs on his scorecard on a monthly basis, from inventory turns to his customer’s satisfaction and this has become an obsession with him. His reason for doing so is that it gives him a picture in time of what is important and worth measuring in his supply chain performance. Furthermore, he doesn’t need to guess about his supply chain performance, he has the documentation to prove it.
Lastly, once you have established your KPIs, you will need to benchmark your KPIs annually to ensure that you are stretching-the-limits of your goals and objectives. This exercise will deter you from only having effortless goals and objectives that won’t move your supply chain organization forward. That’s what supply chain management in 2010 is all about!
Wouldn’t you agree?
Your Partner In Savings Beyond Price™,
Robert T Yokl
Chief Value Strategist
Strategic Value Analysis® In Healthcare
1-800-220-4274
P.S. We are getting excellent feedback on the launch of our new “Supply Chain ValueNet™” last week. We are hearing from supply chain professionals that it is just what they have been looking for to move their healthcare organization to the next level of supply chain performance. If you haven’t signed up for your demo yet, now is the time to do so before our introductory subscription fee goes up.
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Healthcare Supply Utilization Revolution
Read this book and in a few weeks save more money than you have in years. Sounds unbelievable? Robert T. Yokl and Robert W. Yokl, healthcare’s leading authorities in Supply Utilization Management, have helped hundreds of hospitals, healthcare systems and integrated delivery networks to saved close to a half billion dollars by employing the same utilization management strategies, tactics and techniques that they will teach you in this book.
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