Strategic Sourcing and Evidence at the MSS Product Fair

Posted by Ryan Chopra on August 3, 2017
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RunawayTrain_800.jpgThe Mid-America Service Solutions (MSS) Product Fair is being held on August 3rd at the Overland Park Convention Center, Overland Park, KS. This year, Hayes is fortunate enough to be invited to speak. I’m honored to be presenting “Strategic Sourcing: What Role Should Evidence Play?”

“Inventory management for many providers is a ‘runaway train,’ with thousands of SKUs, inadequate product standardization, and waste. Evidence has a role in changing that.”

Lack of transparency in costs associated with product creation and distribution makes accurate evaluation and/or the comparison of product pricing difficult. Additionally, the incentives and goals of manufacturers and suppliers are usually at odds with those of the providers. As a result, inventory management for many providers is a “runaway train,” with thousands of SKUs, inadequate product standardization, and waste. Evidence has a role in changing that.

Also, significant variation in patient outcomes, spurred by a lack of health technology standardization, along with spiraling healthcare costs are a barrier to achieving the Triple Aim. Traditional solutions like volume-based price negotiations and reverse auctions have limitations. Evidence-based decision making is key to the high-performance strategic sourcing that can overcome these limitations.

During our presentation we will discuss:

  • Exploring the principles, methods, and resources necessary for successful strategic sourcing
  • Discussing the contribution of evidence-based value analysis to strategic sourcing
  • Exploring the potential gains and risks associated with manufacturer and supplier partnerships as a key strategy in strategic sourcing
  • Discussing case studies that exemplify best practices in strategic sourcing

“Additionally, strategic sourcing employs software tools and information sources to bring data mining, analytics, metric measurement, and decision support to clinicians, managers, and leaders efficiently and comprehensively.”

Strategic sourcing evaluates the capabilities and reliability of manufacturers and suppliers, limiting partnerships to vendors that add value and are aligned with health system goals and are trustworthy. It aligns supply chain strategic sourcing goals with the health system’s goals and strategic initiatives and prioritizes and organizes efforts within categories of health technologies and other sourcing opportunities such as:

  • Purchased services
  • Facility maintenance
  • Capital equipment
  • Construction

Additionally, strategic sourcing employs software tools and information sources to bring data mining, analytics, metric measurement, and decision support to clinicians, managers, and leaders efficiently and comprehensively.