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Female healthcare professional posing for picture in clinicTransformation is a disruptive undertaking, but the risks and opportunities within the IDN Supply Chain warrant a closer look into a health system’s nextgen supply chain readiness.

 

Over the past few decades, a perfect storm has been brewing in healthcare. As M&A activity continues, consolidated healthcare systems are serving larger communities, managing bigger spends, and coordinating more complex business operations. It’s more essential than ever to render efficient health services while maintaining—or improving—patient outcomes.

 

One part of this ongoing complexity is exponential growth in the number of SKUs hospitals must manage. In fact, the number of individual supply items has mushroomed from a few thousand to upwards of 60,000—and that number grows every day.

 

The problem is that physical hospital space was never set up to handle this volume of product. In addition, clinicians do not typically receive training or education in supply chain best practice, and the negative ramifications on clinician efficiency, patient care, and cost control are becoming increasingly evident.


Determine your organizations’ readiness for supply chain transformation with the IDN Supply Chain Readiness tool.


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Effective inventory management is always a delicate dance between the cost associated with carrying too much inventory and the risk of not carrying enough to fulfill a customer order at the right moment. With ongoing pressure to ship orders within compressed timeframes, there’s no room for error, and competitors are always on your heels. It’s critical to unearth new ways to generate savings and efficiency at every turn. Cross-docking often leads the opportunity list with its ability to minimize material handling costs and get inbound products prepped for shipment at lightning speed.

 

Forklift cross-docking as it carries pallets of stock from warehouse into delivery truck

 

Although the practice of cross-docking has been around for quite a while, many organizations shy away from implementing it because they think it’s more work than it actually is. In doing this, they forfeit cost and efficiency benefits that can help them better meet customer demands, particularly for specialty items.


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Warehouse worker using warehouse management systems to scan and organize inventoryA new era of buyers has arrived, and they are focused on the customer experience. It’s not enough to simply deliver a product into a buyer’s hands. No matter the industry, today’s savvy consumers expect a seamless, superior experience that delivers on a company’s brand promise. They want faster service, higher value, and 100% fulfillment. They want to feel good during the buying process. And they want this across all channels wherever they touch the brand.

 

With that in mind, everything a company does from its messaging to the sales process to what occurs after the sale is part of the customer experience. If a company has deficiencies in any area, it could result in a customer having unmet expectations and a poor experience. If they are left unsatisfied, the company – and brand – could suffer detrimental effects.


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