04October
Optimizing Supply Chain process for a large Hospital Chain (with over 30 hospitals) 0 Comments | By admin
Business problem:
A large Healthcare group with more than 30 hospitals with over 10,000 beds has a decentralized supply chain with cost inefficiency. Same type of material procured for different prices by different units
High inventory levels resulting in frequent material expiry and inventory write off.
Inadequate controls resulting in pilferage and excess use by end users.
High procurement cycle time and more than 30% of purchase being emergency purchases.
Solution Approach:
Analyze the current operations against key impacting factors for operational excellence
Extensive data mining across the group and applying advanced analytics to develop predictive models.
Setting up centralized protocols and policies to streamline supply chain process, building a shared service center to service all hospitals in the group.
Inventory optimization, purchase process standardization, common guideline price, vendor list standardization, predictive models for demand prediction.
Key Outcome and benefits:
Procurement cost reduction of 7% across the group, with annualized saving of $ 2 million.
Enhanced controls and accurate inventory valuation.
Improved supply chain reliability and compliance to JCI standards.
