Rather than being viewed as a middleman , Medline is seen by Sutter Health supply chain leaders as a mediator that helps hospitals and health systems optimize their supply distribution channels .
Supply Chain Results From start to finish , this project took four months to complete . In the five months since the project was rolled out , Sutter Health has seen promising results .
“ We ’ re now able to funnel close to $ 40 million worth of product through a Medline distribution center ,” Ayers says . “ We moved 1,112 SKUs to Medline from 103 other vendors . Our receivers on the dock have everything consolidated for the most part in the morning and less reliance on all these other trucks coming in later in the day . It just created a huge benefit for us on the back end — plus it lowers our carbon footprint .”
Per Ayers , they have reduced the number of trucks delivering supplies , decreased the number of supply POs and invoices , and increased staff efficiency . In addition , Sutter Health has saved $ 400,000 to $ 500,000 .
Patient Benefits Why is the Sutter Health supply chain team happy with the resulting efficiencies and cost savings ? Supply chain optimization contributes to improved patient care — and access to care for the communities Sutter Health serves . How ?
• The right products are delivered at the right time in the right quantities , contributing to resilience and uninterrupted care
• Caregivers have the
Organization Sutter Health is a not-for-profit healthcare system dedicated to providing comprehensive care throughout California . Committed to health equity , community partnerships , and innovative , high-quality patient care , Sutter Health is pursuing a bold new plan to reach more people and make excellent healthcare more connected and accessible . Currently serving nearly 3.5 million patients , thanks to its dedicated team of more than 57,000 employees and clinicians , and 12,000 + affiliated physicians , with a unified focus on expanding care to serve more patients .
Sutter Health delivers exceptional and affordable care through its hospitals , medical groups , ambulatory surgery centers , urgent care clinics , telehealth , home health and hospice services . Dedicated to transforming health care , at Sutter Health , getting better never stops .
Challenges Sutter Health removed some vendors from its distribution channel to buy direct during the COVID-19 pandemic to ensure supply chain continuity . They were experiencing trucks with supplies arriving at receiving all day , costly freight fees and a high number of invoices and open purchase orders ( POs ).
In 2023 , when it was time to return the vendors to the distribution channel , they didn ’ t know the best way to do it .
devices , supplies and medications they need to provide high-quality care with fewer delays
• Cost efficiencies for patients and communities make services more accessible
• Caregivers can focus on patient care rather than wrestling with logistical challenges
• A reduced carbon footprint and focus on sustainability is good for everyone
Ayers and Hoare want to explore how to optimize other Sutter Health supply portfolios to benefit patients . Ayers says , “ We ’ re about to
Actions
• Sutter sent their master item file to Medline so the team could look at where they could shift items to Medline as their distributor
• The Medline team identified 1,200 items that could be shifted .
Medline ’ s implementation team worked with Sutter ’ s Stock Control team to carry out the process .
Supply Chain Results Since the project was rolled out in mid-March 2024 , Sutter has :
• Reduced freight fees and the number of trucks delivering supplies
• Decreased the number of POs and invoices
• Increased staff efficiency
• Moved 1,112 SKUs to Medline distribution from 103 other vendors
• Saved $ 400,000 to $ 500,000
Patient Benefits Supply chain optimization contributes to improved patient care — and access to care for the communities Sutter Health serves .
• Caregivers have the devices , supplies and medications they need to provide high-quality care with fewer delays
• More accessibility for communities due to cost efficiencies
• Caregivers can focus on patient care rather than wrestling with logistical challenges
• A reduced carbon footprint and focus on sustainability is good for everyone
embark on lab distribution and EVS . I would say this is the first phase of a continuing journey .” Sutter Health supply chain leaders are taking steps to become more transparent , resilient and sustainable , from creating a distribution control tower to moving toward an integrated supply distribution channel 2 and striking a balance between just-in-time inventory management and just-in-case . 1 ◼
References 1 . Rana , K . ( 2024 , January 13 ). The Balancing Act : JIT vs . JIC in Inventory Control . Logistics Insider . https :// www . logisticsinsider . in / the-balancing-act-jit-vs-jic-in-inventory-management / 2 . Harapko , Sean . ( 2023 , January 6 ). How COVID-19 impacted supply chains and what comes next . Ernst & Young LLP . https :// www . ey . com / en _ us / insights / supply-chain / how-covid-19-impacted-supply-chains-and-what-comes-next 3 . Goldschmidt , K . ( 2022 , April 18 ). The downstream effects of the COVID-19 pandemic : The supply chain failure , a wicked problem . Journal of Pediatric Nursing . https :// www . ncbi . nlm . nih . gov / pmc / articles / PMC9014739 /# bb0010
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