1 / 14

Supply Chain Continuum Presented by Mike Morrelli

Supply Chain Continuum Presented by Mike Morrelli. Owens & Minor. Agenda. Market dynamics and the d eveloping t rends . What is the Supply Chain continuum? How to baseline & the benefits of moving towards best practice. Supply Chain as an Evolving Model. Market Dynamics - Questions.

kaspar
Download Presentation

Supply Chain Continuum Presented by Mike Morrelli

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Supply Chain ContinuumPresented by Mike Morrelli Owens & Minor

  2. Agenda • Market dynamics and the developing trends. • What is the Supply Chain continuum? • How to baseline & the benefits of moving towards best practice. • Supply Chain as an Evolving Model.

  3. Market Dynamics - Questions • Health reform impact on Supply Chain? • Future of Supply Chain? • External ways to increase efficiencies in our organizations? • How to improve quality and reduce costs? • Optimize the different distribution channels? Model of the Future ? Proactive Supply Chains Aggregation

  4. Developing Trends & Topics Market forces are accelerating industry-wide change: • Future driven by Payors and payment structure • Margin pressures increasing significantly across all trading partners • Competitive lines are blurring

  5. Supply Chain Continuum Aggregation Opportunities Med/Surg Devices MRO/Jan-San Common Needs Office Linen Pharm

  6. Supply Chain Continuum Supply Savings Supply Savings • Transportation • Physician Clinics/ Non-Acute Supply Savings Labor Activity Savings • Bill-Only (Implant) Management Labor Activity Savings Labor Activity Savings

  7. Supply Chain Continuum Integrated Service Center ISC

  8. How to Baseline Example

  9. How to Baseline Executive Scorecard - Summary Example

  10. Supply Chain as an Evolving Model

  11. Example: Perioperative Locations Goal Transform from a reactive supply chain to a proactive demand chain • Why • Reduced supply spend • Optimized labor • Elimination of inventory • Improved profitability per procedure Assemble Patient Supply Chain Demand Chain Use Schedule Preference Card Adjust

  12. Traditional Market was Clearly Defined… • Distributor Model • High volume • <$800/unit • Low complexity • Nearly 100% - GPO contracting • Uncomplicated use • Private label • Minimal direct sales • Manufacturer Direct • Low to moderate volume • >$800/unit • High to very high complexity • Direct sales force • High prevalence of local contracting • Complicated use • Mostly sold direct 35% 65% By volume: 75% Distribution / 25% Direct AHA, Gartner Research, 2011 2012 O&M research, estimates

  13. But the Delivery Dynamics are Changing Rapidly… • Distributor Model + Fee for Service • Manufacturers increased reliance on more effective supply chains to service providers • Increase Flexibility • Lower Cost • Improve Visibility • Manufacturer Direct • Downward pressure on revenues /margins forces re-evaluation of SG&A inventory & DSO elements • Address changing customer needs 40% 60% AHA, Gartner Research, 2011 2012 O&M research, estimates

  14. Questions & Answers • Health reform impact on distribution? • Future of distribution? • External ways to increase efficiencies in our organizations? • How to improve quality and reduce costs? • Optimize the different distribution channels? Identify logistics service partners; separate out manufacturers/wholesalers Invest in technology & interfaces to connect schedule, care & replenishment Eliminate ownership as a condition of management; consider novel investments

More Related