Enterprise Resource Management

1. Lawson Healthcare SolutionsOptimization of Key ResourcesForms a Foundation forExcellent Patient Care

2. Enterprise Resource Management • Offers solutions to the 3 critical areas of Resource Management: • Workforce: Lawson Human Capital Management • Supplies: Lawson Supply Chain Management • Capital: Lawson Financials

3. Background: Materials Management • Materials Managementis the branch of logistics that deals with the tangible components of a supply chain. Specifically, this covers the acquisition of spare parts and replacements, quality control of purchasing and ordering such parts, and the standards involved in ordering, shipping, and warehousing the said parts. Wikipedia

4. Supply Chain

5. Traditional/ Legacy Model • Large Inventory of Items maintained in hospital warehouse and storage areas in hospital. • Large staff maintains inventory and searches for items as they are requested by units • ESI/ NOVA software utilized to place orders, manage stock

6. Process

7. Users needs→→ Requesting Items • Tasks • Catalog of items • Multiple names and item numbers for a given item • Outdated paper catalogs • Purchase Orders • Paper • Time-consuming • Lost orders/tracking • Approval process • Purchasing authority • Lawson Solution= Materials Management Inventory System (MMIS) • On-line, searchable database of available items • Detailed descriptions of products from supplier • Each item contains all necessary fields to ensure order accuracy • Every item has an associated vendor contract to ensure pricing accuracy

8. Requesting Items Challenges Lawson Solutions = Requisition Self-Service (RSS) Any employee can be trained and authorized to access the MMIS and place orders directly Accuracy and cost control enhanced by associated product details and vendor contracts At UAB, over 2000 employees have been trained and approximately 500 are regular users • Disconnect between user of items and supply technicians • Error prone • slow

9. Requesting Items- Par Inventory • Tasks • Establish and adjust par inventory goals for units and storage areas • Determine items used on a routine basis • Place orders to replenish items, i.e. maintain par levels • Lawson Solution • Maintains electronic database of par levels • Adjustable • Generates reports to flag insufficient levels • Supports hand held scanners used by counters who scan remaining items on units • Scanners sync results to main system and generate automated orders to replenish items

10. Placing Orders Tasks Lawson Solutions RSS and MMIS support Electronic Data Interchange (EDI) and GHX standards Enhances productivity and shortens order/receipt turnaround with GLN universal address identifier Electronic trail of orders Allows future use of GS1 standards Lawson Electronic Fax Integrator Converts fax orders to EDI • Purchase orders faxed to suppliers • Slow • Potential for lost orders • Minimal tracking

11. Shipping & Receiving Tasks Lawson solutions MMIS allows efficient matching of orders and deliveries by supply technicians in receiving center Maintains preset palate unloading of cardinal deliveries by final destination MMIS interfaces with UAB Finance’s Oracle enterprise • Cross reference items with orders to confirm accurate fulfillment and maintain quality assurance • Receipt of items from Cardinal, other distributors and delivery providers (Fed-Ex, UPS, USPS) • Update Accounts Receivable to close order/receipt/payment loop

12. Distribution Tasks Lawson Solutions MMIS includes final destination information on all orders to allow for efficient distribution by hospital personnel Any item’s MMIS identifier can be used to determine where it should be delivered Facilitates locating recalled and expired items • Deliver items to floors, units, OR and supply rooms • Track location of items ordered but not distributed • Respond to recalls to remove items • Monitor expirations of items

13. Lawson Solutions-Overview • Provides the latest inventory management tools to the health care system • Integrated MMIS allows all users to access system • Clinical staff and unit managers to place orders • Supply Staff to receive and distribute orders • Managers to track orders and costs • Suppliers to utilize EDI purchases

14. Lawson Solutions-Overview • Upstream MMIS is fed data from suppliers of equipment and downstream it interfaces with UAB’s Oracle systems and Crystal Reports to serve the needs of the Finance, Accounting, Accounts Payable and Administration. • Data is entered into a master file for each product which contains multiple identifiers and links to a vendor agreement which specifies processing

15. Lawson Solutions-Overview • Leader in industry with 4,000 customers in 40 countries, including 100 health care providers • Competitors include IBM/Cognos, McKesson and Oracle • Compatible with United Nations Standard Products and Services Code® (UNSPSC®), currently used at UAB and GS1, the standard currently advocated by AHRMM to promote safe and efficient supply chain management

16. LAWSON MATERIALS MANAGEMENT