With the variety of challenges facing the healthcare system today (including tight budgets, staffing shortages, consolidations, and more) it is key that providers use logistics management best practices to help alleviate some of the stress put on them.
The recent Becker’s Healthcare podcast with Emily Gallo, Senior Vice President and General Manager at Cardinal Health™ OptiFreight® Logistics, walks through what these foundational logistics management best practices are and how providers can take advantage of them. Below are 4 key takeaways you can use to improve your Ambulatory Surgical Center (ASC).
1. Logistics management best practices to maximize savings include supplier connections and compliance, mode optimization, user compliance, and large freight shipments.
All the listed best practices are key to make the greatest impact on a provider’s supply chain. Gallo provided the following insights on each:
- Supplier connections and compliance – “…first, (individual facilities must establish) a connection with all their suppliers. Then, they… need to educate the suppliers on their program and why it’s important to participate. Then, they have to actually get the suppliers to participate and monitor them to ensure they’re adhering to the current contract and charging appropriately for shipping. But if a healthcare provider is using a logistics management provider, they can do all those things on the healthcare provider’s behalf and significant lift can be taken off the supply chain team.”
- Mode optimization – “Mode optimization is determining which service level is the most cost-effective way to ship packages and ensure they still get to their destination on time. For inbound shipments, what’s the best shipping mode for each supplier, based on proximity to the delivery address? For example, ground service may deliver the next day without overnight charges.
- User compliance – “Think about how many packages ship out every year from a healthcare provider – and from how many different departments. Are employees shipping the most efficient and cost-effective way… Do they understand the impact their actions could have on savings? Do they need further training or education on shipping best practices? There is often a lot of opportunity to drive positive change from within.”
- Large freight shipments – “Supply chain teams should also insert themselves in the pre-construction phase of a capital improvement project to plan for large freight shipments. Are they working with the best, most cost-effective carrier? Have they received multiple quotes to compare price and service?”
2. A logistics management provider can act as an extension of a healthcare provider’s team, saving time and allowing them to focus on patient care.
While these best practices are all very important, it does take time and resources to implement them. The responsibility to identify opportunities and then drive change through the organization would fall solely on the healthcare provider if they are not using a logistics management provider.
Gallo states in the podcast however that, “a logistics management provider can work on behalf of healthcare providers to implement best practices… Through their analytics, tools and insights, they can help drive user compliance by identifying those employees who aren’t shipping through the program (meaning missed savings) and work with the supply chain team to educate those folks. Logistics management providers can also continuously mine data and look for new opportunities to drive efficiency and maximize savings.”
3. A logistics management provider acts as an extension of a supply chain team in more ways than one.
All the best practices mentioned above are not the only things logistics management providers give to their users. Gallo highlights in the podcast other areas that might be overlooked when it comes to logistics management provider services.
“Back office support is key. This includes billing and invoicing activities such as PO matching, comprehensive audits, and G/L cost center allocation as well as claims support. Program management is another important piece. This extends beyond making smart shipping decisions. It means staying close to the healthcare provider team to understand goals and any upcoming projects for the year where logistics management could play an important role. Or, even bringing ideas to the table that were successful for other healthcare providers of a similar size with similar needs.”
With this extra support, a logistics management provider can offer even more value to the healthcare provider in the long run.
4. “There’s not a one one-size-fits-all approach to logistics management.”
Overall, using the best practices mentioned above along with a logistics management provider will allow healthcare providers to make the proper investments to their facility, leading to growth while also making room for innovation in the future. But most importantly, there is no universal logistics management plan for all facilities.
“At OptiFreight® Logistics, we believe there’s not a one-size-fits-all approach to logistics management. We are passionate about building a strong foundation for our customers, and we do that by helping customers gain greater control through our team of committed experts, tailored solutions and continuous innovation and insights. With greater control comes greater confidence to meet the critical goals of optimizing shipping costs and improving efficiencies within a healthcare organization — today and in the future.”
Click here to listen to the full podcast or click here to learn more about OptiFreight® Logistics.