To Achieve Superior Supply/Value Chain Performance You Need To “Think Differently” And “Do Differently”

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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 E-Zine- December 20, 2006

Robert T. Yokl

President & Chief Value Strategist

Greetings!

Gearing Up for Big Things Next Year!

Well it is that time again that we are at the end of another year in the healthcare supply chain world and hopefully putting all the key components in place for a very successful supply chain savings performance for you and your organization for the new calendar year. As a way to help you through you supply chain success planning for 2007, I would like to give you a download (F*R*E*E) of our “Targeted Blueprint for Supply Chain Management Success."

Download your copy of the Targeted Blueprint Here!

This planning guide will allow you to ask yourself all the right questions you need to have answered in order for you and your supply chain organization to be successful for 2007. It is definitely a way to take a step back and “Get Organized to Save,” as the famous (many have said it) quote says, “Every Professional Goes Back to Basics at Least Once a Year (Baseball=Spring Training – Football=Training Camp).” Why not highly skilled supply chain professionals too?

I would like to wish all of our loyal e-newsletter subscribers and your families a very happy and safe holiday season.

Your Partner in Supply Chain Savings,

Robert T. Yokl

President & Chief Value Strategist

P.S. If you are looking to fast track your savings opportunities for next year as opposed to trying to reinvent the savings wheel, why not take advantage of our F*R*E*E Supply Chain Savings Scorecard to help you identify where and how much savings you still can attain in your supply chain?

To Achieve Superior Supply/Value Chain Performance You Need To “Think Differently” And “Do Differently”

“If You Are Doing The Same Things And Are Expecting Different Results, It’s Time For A Reality Check”

With the introduction of the supply/value chain management concept a few years ago, healthcare organizations thought all they had to do to reduce their supply/value chain cost was to put together a committee or a few teams, with the goal of saving money. They thought the savings would just flow as a matter of course! What really happened is that commitment soon “waned” and when resistance to change raised its ugly head, these initiatives fizzled, stalled or hit the wall on savings altogether.

To reverse the negative effects of this flawed thinking “progressive” healthcare organizations need to: (i) change their culture, (ii) re-organize to save, (iii) change their focus from “price” thinking to function, customer and quality thinking, and (iv) adopt new innovative and revolutionary strategies, tactics, tools and techniques to create new positive behaviors and outcomes. This can only happen if and when healthcare organizations decide to change their strategic direction.

The Need To “Think Differently” and “Do Differently”

It’s no secret that “if you are doing the same things related to your supply/value chain performance and are expecting different results”, it’s time for a reality check! Healthcare organizations that have reached the level “superior” performance with their supply/value chain performance, “think differently” and “do differently”, than healthcare organizations that have “average” performance. In fact, they do four things differently.

First, they adopt new functional models for the evaluation and selection of the millions of dollars in products, services, and technology purchases that they commit to annually. New functional models provide a standardized value-based process that will remove the time and cost of your employees’ “Winging It”. This will inaugurate a new process, which will have department heads and managers redefine and reinvent all of the products, services and technology they are buying, thus create a new, innovative way for them to think about their buying process.

Second, they create new organizational architectures and new rules that are Team-based. This enables them to engage all of their department heads and managers in making savings happen, since they are the individuals who actually manage and control their budgets.

Third, they change their culture from “Price” thinking to function, customer and quality thinking. This streamlines and reinvents their product, service and technology evaluation/selection process evermore. Cultural change is necessary so that sustainable supply/value chain savings can flow easily and consistently without turf battles and wars being fought over moving a paper clip from one desk to another.

By changing this paradigm (from “price” thinking to function, customer and quality thinking), their clinicians become willing partners in their supply/value chain initiatives due to the fact that they won’t be pushed and pulled in the wrong direction by traditional products evaluation techniques and tactics.

Fourth, they employ the latest technologies so that their department heads and managers can, plan, organize, analyze, track, and document their value studies. At the same time they utilize the new technology to guide them in the search for lower cost alternatives for all of the products, services and technologies that they are now purchasing.

Above all, these “superior” performance supply/value chain organizations optimize their supply/value chain successes through a never-ending search for enhancements and improvements in their supply/value chain. Success to them is not just a destination, but a never-ending journey!

Supply/Value Chain Success: A Never-Ending Journey

As I mentioned, when these “superior” performers talk about their supply/value chain successes, they talk of it in terms such as “superior performance isn’t a sometime thing, or one time thing, but a never-ending journey” In fact, they never expect to reach perfection with supply/value chain management, because they are always on an inexhaustible “quest” to enhance and improve it.

My inescapable message to you is, if you are to move from “average” to “superior” supply/value chain performance you too will need to “think differently” and “do differently”, like those few, but “elite” healthcare organizations that get it, live it and are very proud to be called “leaders” in supply/value chain management.

DID YOU KNOW…

Value Analysis is also know as Value Engineering in the manufacturing and construction industries and is utilized in programs like Lean, TQM and business process reengineering.

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