Healthcare Value Analysis Hospital Consulting and Benchmarking for Supply Chain Savings

If you separate the facts from the fads in healthcare supply chain management you will quickly discover the “must-have” supply chain practices that truly produce superior results. What does really work, you might be surprised to hear, is that you need to go back to basics before you can go forward to big savings results in the future.

From my experience, here are the four primary supply chain best practices that really work and have past the test of time:

I can’t think of a healthcare organization that doesn’t belong to one, two or even three GPOs, but very few hospitals that I have observed have jumped on their GPOs committed volume contracts. That’s where the deep deep savings can be achieved for your healthcare organization, because all vendors sharpen their pencils when they know that they will get all of your business, not just some of it. That’s why regional GPOs are becoming a big factor in saving money for their members; they are all steadfastly focused on committed volume purchasing.

Value analysis in all its flavors, as a MM characterized it to me the other day, can save you money. However, if you were to employ the classic (back-to-basics) tenets of value analysis as espoused by Larry Miles, the Father of value analysis, you will save a lot more money and have better and faster results.

LEAN management has a 28-year history of leaning supply chains of waste and inefficiencies in all industries, including healthcare, by making use of Toyota’s 14 principles of management. LEAN is not only a best proven practice, but a “must-have” approach to supply chain management that will eliminate the huge costs of your hidden waste. The healthcare organizations that we have worked with over the years that religiously applied Toyota’s 14 principles have saved seven to 15% on supply chain expenses – almost overnight.

In the 80s Bill McFaul, the co-founder of McFaul and Lyons consulting firm, coined the phase “consumption management” to focus his clients on savings beyond price™ where the greatest savings can be achieved. We now call this discipline Supply Utilization Management because this art and science encompasses more than just consumption analysis of the products, services and technology you buy, but also targets the value mismatches in supply chains that are bloating hospital’s budgets. This is an old concept whose time has arrived again to be put into practice, since your price savings are slowly on the decline and your low hanging fruit have been picked.

You might want to consider these four best practices as “what’s old is new again” since the right strategies, tactics and techniques never really grow old, but somehow just get lost in the passage of time as we move on to new but not necessarily better best practices. I hope you will revisit these four primary supply chain best practices to produce even more superior results in the future for your healthcare organization.

P..S. If you want to read more about “what’s old is new again” ideas you might want to check my special report “Building a Savings Factory” that will give you even more best practices that have passed the test of time.

Are You Ready to Open Up a Whole New World of Supply Chain Savings That You Never Imagined Would Be Possible Before?

Do you need to pinpoint where your supply utilization savings are hiding?

The term radar (radio detection and ranging) was coined in 1941, to describe a new technology that detected the altitude, direction and speed of fixed and movable objects, such as airplanes, ships, motor vehicles, weather and terrain.

Radar worked so well in WWII that it is credited as one of the reasons the Allies won the war.

What makes radar so powerful is that it can pinpoint the exact location of something even when other search methods have failed.

Now, take the radar analogy and apply it to your healthcare organization. The bottom line is that price is no longer king, and we’re in turbulent economic times. You NEED something to help you pinpoint where your savings are hiding if you’re to meet your benchmarks and savings goals.

That’s where our Utilizer™ Dashboard comes to the rescue!

You’ve got to attack unnecessary spending!

Just the other day, a material manager (MM) told me that she oversees 26,000 products, services and technologies, but has no way of knowing which are out of cost control at any given time. As a supply chain professional, you know what that’s like. You must hold your total supply cost to the absolute minimum—and doing this requires vigilance.

There’s no better way to be on the lookout for savings opportunities than with your own supply chain radar! The Utilizer™ Dashboard is exactly that! It will help you detect the waste, inefficiencies, misuse, misapplication and value mismatches in your supply chain before they inflict serious damage to your bottom line. Some of these misuses and mismatches are costing your healthcare organization anywhere from four to 11 percent in lost savings opportunities every month, quarter and year you continue to fly blind.

This savings computes to 1 or 2 million dollars per 100 occupied beds. So if you have 180-occupied beds, this could mean 1.8 million to 2.8 million going right to your bottom line—which isn’t small change when you consider that your price savings are disappearing every day.

Utilizer™ Dashboard is Fast, Easy, Efficient Radar—We Do the Heavy Lifting!

Because supply chain professionals have such limited time, it’s critical that when value analysis tools are employed, they provide a high ROI and require very little time and effort to be deployed by supply chain managers. To our delight, that’s exactly how our new Utilizer™ works. We do ALL the heavy lifting, and you reap all the savings.

You Get More with the Utlizer™ Dashboard, Including Training in an

Award-Winning Value Analysis Program

When you use the Utilizer™ Dashboard, you aren’t just getting a software program and a “Best of luck,” from us. We want you to succeed and see the value in this revolutionary program, so included in your purchase of the Utlizer™ Dashboard is a FREE Advisory Service that guides you through the implementation process to quickly and easily make your savings happen!

As a bonus, we will also train your value analysis team in our award-winning advanced value analysis training program to smooth the road to change for you. You’ve got nothing to lose and everything to gain, so give us a call today and start seeing immediate savings opportunities with the Utilizer™ Dashboard.

What People Are Saying about the Utilizer™ Dashboard

“I thought the Utilizer™ Dashboard would require more time—that I didn’t have—to manage it. To my surprise SVAH, as promised, did all the heavy lifting and showed me where my savings were hidden, which actually saved me time. ”

“I believe that the Utilizer™ Dashboard is the right product at the right time at the right cost to drive out all of my supply chain waste.”

Quickly Schedule Your “Test Drive” Today!

Yes, call me to schedule my “Test Drive” today so I can see for myself the UTILIZER™ Dashboard in action and find out how I can take my supply chain to the next level of savings performance.