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3. Distribution and transportation logistics Supplies are distributed from the CSC to a healthcare system’ s various hospitals, physician offices, surgery centers, clinics, etc. Optimization of delivery routes and schedules and use of Medline’ s fleet of 2,000 + trucks reduce transportation costs and ensure timely delivery of critical supplies.

4. Staffing and labor management In what’ s proven to be a game changer, daily workforce operations are managed by the CSC to ensure staff continuity and optimal productivity.

5. Efficient operations and inventory management Key measures for successful integration include:

• Technology adoption: Warehouse operations can be run on either Medline’ s or the healthcare system’ s ERP( enterprise resource planning systems) or WMS( warehouse management system).

• KPI reporting: Daily and weekly reporting ensures operating efficiency.

• High fill rates: Safety stock management delivers best-inclass fill rates.

What makes this engine run are the consumables— medsurg supplies that a healthcare system needs every single day. These items are low-cost and used repetitively, yet the level

CSCs can reduce supply chain complexity by

of complexity necessary to owning, managing and distributing them is fairly high.

Medline has the infrastructure, the processes, and the expertise to support this type of distribution network. In leveraging all of this, healthcare systems benefit from a more economic model that enables them to do what they do best, which is patient care. It’ s a symbiotic relationship.

Healthcare systems also derive significant value through complementary services a CSC can offer that would otherwise have to be managed by the healthcare system itself or outside vendors. For example:

• A large IT department capable of transporting and repairing costly high-tech capital equipment, such as infusion pumps, imaging units, bedside monitors and robotics equipment.

• A dedicated place for the collection and repair of patient beds and other portable capital equipment.

Having a facility that can centralize and deploy all of this can have a significant positive impact on healthcare system savings— not just in terms of processes but

also true capital expenditure and equipment repair costs.

The key— speed-to-value Before moving forward on a CSC strategy, there are factors a healthcare system has to seriously consider:

1. Initial investment Setting up a CSC requires making an initial investment in infrastructure, technology and staff training.

2. Change management Transitioning to a centralized model involves changes in processes and workflows, as well as ensuring buy-in from all stakeholders.

3. Technology integration Integrating advanced technology systems for inventory management, procurement and data analytics are integral to implementing a CSC.

4. Scalability Accommodating any future growth and the evolving needs of the healthcare system requires focusing on a scalable CSC design.

What healthcare systems are finding makes this all worthwhile

is speed-to-value. Working with the right partner that offers a multitude of skill sets— that’ s more plug and play— is far less overwhelming and costly than trying to accomplish this alone.

Medline has opened seven CSCs since 2010, and five in the last 12 months. Our proven methodology involves:

1. Forming strategic alliances to enhance supply chain efficiency and resilience. These collaborations can lead to shared resources, better negotiation power and improved service levels.

2. Adopting shared services models where multiple providers within a healthcare system use a common CSC to manage their supply chains, helping to reduce costs and optimize resource utilization.

3. Integrating advanced technological systems to ensure seamless operation of CSCs.

4. Offering expertise in supply chain infrastructure and operations to allow a healthcare system to focus on providing excellent care.

Just recently, Medline entered into an agreement with a large cancer hospital. They chose Medline after visiting multiple health systems with CSCs and seeing that those we were involved with were much further along than those that tried doing it on their own. On a smaller scale, some clinics and hopitals are running their supply chains from dedicated space inside a Medline distribution center. They’ re using our capacity rather than incurring a significant capital investment.

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