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Top Trends in Healthcare: Supply Chain in the C-Suite

By CME on Jun 28, 2017 8:00:00 AM

As debate over how to view, and fund, healthcare through governmental reform progresses, it creates more budgetary pressures on healthcare facilities trying to manage an erratic stream of payments from disparate sources. However, things evolve, payment pressures will not abate, which is why having the supply chain involved at the decision-making level makes fiscal sense.

The supply chain represents 40 to 45 percent of hospital or healthcare system operating expense, second only to labor costs. This mix is expected to keep shifting, with the supply chain potentially overtaking labor costs within the next 5 years. Creating successful supply chain strategies requires a top- down approach with knowledgeable stakeholders involved at the highest levels.

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The Added Value of Supply Chain Management

By CME on Jan 16, 2016 3:00:00 PM

With most healthcare organizations spending as much as 38% of their budget on supply chain activities, effective supply chain management is an absolute must in the healthcare industry.  Supply chain activities are the second largest and fastest growing expense for medical facilities, second only to labor costs.  Effective supply chain management is thus an extremely important added value to any healthcare organization's overall operations.

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Best Practices for Supply Chain Management

By CME on Dec 28, 2015 10:30:00 AM

"Industry best."

"Best practices.”

“Best in class.”

Here’s another often-cited quote:  “You can’t argue with success.”  If you want to be a high achiever and successful within your own organization, Bob Engel, C.P.M., says to look to the processes and practices used by the most successful industry leaders.  He says, “In today's economic environment, doing what you've always done—even if you do it very well—is no longer acceptable.  Under pressure to contain costs and produce results despite challenging circumstances, you (and many other supply chain managers) must transform rather than simply improve your operation.”

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A Quick Check-List of Medical Equipment Items for Your Primary Care Practice

By CME on Aug 15, 2015 6:58:00 AM


It does not take much strength to do things,
but it requires a great deal of strength to decide what to do.
- Elbert Hubbard

When you’re about to begin planning a project to develop a primary care facility, you may divide that project into phases.  One of those phases will likely be supplies and equipment provision/acquisition.  If you’re in charge of medical equipment procurement, you already know what the basic minimum equipment should include, and here’s a short – and by no means complete – basic list:

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7 Supply Chain Management Best Practices

By CME on Oct 2, 2014 7:37:11 AM

With the multitude of tasks required in supply chain management, defining processes that are efficient and cost effective is important to ensure that you act in the best interests of both your own organization and that of your customers.  Since materials management and purchasing exist in all fields of business, best practices tend to be germane to all industries, but there are some that are more specific to given industries, including healthcare.  

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Supply Chain Can Reduce Rising Healthcare Costs

By CME on Sep 30, 2014 1:12:59 PM

Healthcare facility supplies and equipment continue to be one of the leading expenses per patient discharge.  Lowering rising expenditures is driving procurement managers and buyers, administrators, and equipment planners/purchasers to utilize supply chain management to reduce rising healthcare costs for their medical organization.

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Healthcare Logistics and Supply Chain Management: How They Go Hand-in-Hand

By CME on Sep 26, 2014 7:00:00 AM

Supply chain management and healthcare logistics can, and must, work hand in hand to keep hospitals and clinics running at optimum performance.  This is even more true when outfitting a new construction or expansion project.  Working with a dedicated capital equipment distributor can streamline the logistics process allowing supply chain management to maintain control over how deliveries, supplies and equipment flow into your facility.

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Why Supply Chain Management Adds Value (for Customers)

By CME on Sep 12, 2014 9:02:00 AM

Healthcare Supply Chain Strategist Lynn Everard, C.P.M., CBM, says the challenges faced by hospital equipment and supplies procurement managers include:

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CME's Purchase Order Tracking Process

By CME on Jul 30, 2014 10:48:23 AM

When working with multiple vendors in supply chain management you are faced with multiple approaches to delivery.  This means that in the case of a large order for a new clinic, clinic renovation or new department, you may be in a position to lose sight of arrivals and even lose equipment and smaller sundry orders with so much tracking required. However, if you take advantage of working with a hospital distribution company you will be dealing with one or two orders coming from one central warehouse making it far easier to schedule your deliveries.

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A Medical Distributor's Role in Supply Chain Management of Equipment

By CME on Jul 18, 2014 11:17:00 AM

When someone talks about Supply Chain Management, what usually comes to mind is the procurement, acquisition, in-house storage and distribution processes for the consumable items that the healthcare facility uses on a daily basis.  This usually involves such things as GPO (group purchasing organization) negotiations, just-in-time (JIT) deliveries by medical distributors, on-site storage, inventory management and distribution to the end-user departments on a recurring basis.  It also may involve an automated electronic ordering system that essentially minimizes the active engagement of the materials management/purchasing department personnel.

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