Strategic
Value Analysis®
in Healthcare
A Firm You Know and Trust with Over 20 Years of Quality Results in the Healthcare Supply Chain
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- May 2, 2007
Robert T. Yokl
President & Chief Value Strategist
Greetings!
Contracts Need To Be Benchmarked Too!
We frequently receive contracts to review for purchase services (e.g. telecommunications, landscaping, IT, laundry or HIVA services). We are always very diligent in assessing the legal aspects of the contract.
But how about adding a benchmarking clause too?
Benchmarking clauses enable you to: (1) set standards for performance, (2) readjust fees if the market changes, and (3) have automatic stop losses if service levels drop below a certain level.
For example, a laundry service contract could have benchmarks for rips, tears and soiled linens, price adjustments if energy costs drop by 3%, and reimbursement for linen losses beyond .12 cents a pound.
This then will enable you to have on-going performance benchmarks that should be reported to you by your contractor monthly, quarterly and annually, so you can be in control of your contracts – not them.
Your Partner in Supply Chain Savings,
Robert T. Yokl
President & Chief Value Strategist
P.S. If you need assistance in defining your contract benchmarks, I will be happy to share my insights and experience with you, just e-mail me at bobpres@strategicvalueanalysis.com.
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Does Better Information Matter?
“Better Information = Better Results!”
By definition information is knowledge. It gives you facts and meaningful data that leads you to better focus, decision making and results. For instance, if you have information that tells you that your total cost is 10x more on your Oxisensors than your peers, wouldn’t you want to know why this is happening? Or, if your data is showing that your laundry cost is 28% higher than your regional average, wouldn’t that peak your interest?
Better Information = Better Results!
Ever since I have been in the supply chain consulting business I have been fascinated with information and data that has enabled me to pinpoint, with uncanny accuracy new savings opportunities for my clients.
This search for better information and better results started when I was a consultant for a hospital management company and I was responsible for four owned and five managed hospitals’ supply chain operations. Since it was impossible for me to be on-site at these hospitals daily, I decided to develop informational systems to manage and control their operations.
To do so I employed metrics, benchmarks and monthly, quarterly and annual reports to measure and manage all of the critical supply chain operations at these hospitals. With the result, that our hospitals had the lowest supply chain cost compared to any regional or national yardstick.
Does Better Information Matter?
Yes through trial and error, I have found that better information does matter if you want to dramatically improve your supply chain operation. And it takes less time and is less difficult than you would think.
All you need to do is build or buy databases that will uncover your hidden savings opportunities and identify your operational weakness continuously. This way you can proactively be on top of all of your supply chain challenges without breaking into a sweat.
I’ve done it and I know you can do it too!
Are new strategies, tactics, tools, and techniques required to dig deeper and broader for supply chain savings?
Supply
Six
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