Amerinet Executive Briefing Offers Insight on Finding Supply Chain Efficiencies

ST. LOUIS--(BUSINESS WIRE)--According to a new executive briefing recently published by leading group purchasing organization, Amerinet, managing the supply chain will take on increased importance as current challenges will give rise to new opportunities for innovation and partnerships.

“Targeting supply chain improvement is the single most effective way to improve profitability, address cash on hand and ensure reliability of product and service delivery”

The report, developed from an education session by Vicki Smith-Daniels, Ph.D., professor of supply chain management at the W.P. Carey School of Business at Arizona State University, focused on understanding the severity of challenges affecting the supply chain, identifying actionable strategies for immediate implementation and exploring new strategies for engaging trading partners, physicians and clinicians in supply chain improvement.

“Targeting supply chain improvement is the single most effective way to improve profitability, address cash on hand and ensure reliability of product and service delivery,” said Smith-Daniels. She cited reasons including:

• A dollar saved in the supply chain goes right to the bottom line, making a bigger impact than a dollar gained in revenue.
• In most healthcare facilities, supply chain is the second largest cost – in some cases even surpassing care delivery.
• The supply chain affects numerous key performance areas, including logistics, distribution, safety, product integrity and a number of healthcare standards initiatives.

According to the report, while the challenges are large, healthcare organizations have a number of levers available to help balance the factors of financials, shortages and services. Providers who start now may even be able to make the current markets work to their advantage.

Strategies and areas of concentration identified include:

• Cost-containment on existing purchases
• Multi-product, multi-source contracts
• Managing cash on hand
• Integrating the supply chain
• Supply chain staffing
• Data-driven negotiations
• Engaging trading partners, physicians and clinicians

“The key is to stop viewing the supply chain only within the constraints of the facility’s walls and start looking at all the upstream and downstream relationships to find new ways to maximize value. The winners will turn the economic downturn into an opportunity to better manage their supply chains and increase profitability,” said Smith-Daniels.

The briefing was part of the Amerinet Economic Solutions education series. A free copy is available at www.amerinet-gpo.com.

About Amerinet

As a leading national healthcare group purchasing organization, Amerinet strategically partners with acute and alternate care providers to reduce costs and improve quality through its performance solutions. Built on a foundation of data, savings and trust, and supported by a team of clinical and supply chain experts, Amerinet enriches healthcare delivery for its members and the communities they serve. To learn more about the Amerinet difference, visit www.amerinet-gpo.com.