Did you know......?
Each year the staff of the Materials Management Departments at our nation’s healthcare facilities handles many billions of pieces - some of them 2-3 times! While the average hospital logistics center handles a huge dollar volume of stock supplies the average cost per piece is actually somewhat, make that very, low. It is the incredible piece count that primarily accounts for the high dollar values. A piece is anything that has to be handled one at a time: an each, a box, a case, etc. Some pieces weight grams; some weight 100's of pounds.
Every weekday millions of overnight-rush-gotta-have-it-right-now-most-important-in-the-world packages arrive requiring special processing and delivering. Talk about rapid response techniques! Today many, if not most, suppliers of high unit cost medical devices have placed warehouses as close as possible to FedEx's main hub in Tennessee. Use of overnight delivery, once a novelty, is now routine, resulting in massive reductions in supply chain inventory investments. This increases freight expense, but reduces total overall costs in the supply chain. As more freight carriers develop dependable overnight services prices continue to decline, and the practice more common. Proximity to good highways, once the key factor in locating a warehouse, is giving way to proximity to good airports: preferably an overnight carrier’s main hub.
World-class logistics is a generic term applied to companies that fill 97% or more of their customers’ requests the first time. Few suppliers to the medical industry meet this test (regardless of claims to the contrary). Yet many healthcare organizations have achieved consistent fill rates to their internal customers that exceed 98%: very world class and better than their best supplier! Many organizations generate daily status reports that communicate to their users any problems or unusual occurences with products. This innovation saves users many thousands of telephone calls while documenting service levels in an every day report card.
Today we should salutes the staff and vendor personnel who routinely count, order, track and handle the many tons of supplies, one piece at a time, which we use to treat our patients each and every day. They're not only good; they're real busy and good! Let's never forget that each and every life ever saved at our hospitals involved the sweat of someone in logistics. Be proud of that. Together we really do make a difference.
Tomorrow: “Give Thanks”
Each year the staff of the Materials Management Departments at our nation’s healthcare facilities handles many billions of pieces - some of them 2-3 times! While the average hospital logistics center handles a huge dollar volume of stock supplies the average cost per piece is actually somewhat, make that very, low. It is the incredible piece count that primarily accounts for the high dollar values. A piece is anything that has to be handled one at a time: an each, a box, a case, etc. Some pieces weight grams; some weight 100's of pounds.
Every weekday millions of overnight-rush-gotta-have-it-right-now-most-important-in-the-world packages arrive requiring special processing and delivering. Talk about rapid response techniques! Today many, if not most, suppliers of high unit cost medical devices have placed warehouses as close as possible to FedEx's main hub in Tennessee. Use of overnight delivery, once a novelty, is now routine, resulting in massive reductions in supply chain inventory investments. This increases freight expense, but reduces total overall costs in the supply chain. As more freight carriers develop dependable overnight services prices continue to decline, and the practice more common. Proximity to good highways, once the key factor in locating a warehouse, is giving way to proximity to good airports: preferably an overnight carrier’s main hub.
World-class logistics is a generic term applied to companies that fill 97% or more of their customers’ requests the first time. Few suppliers to the medical industry meet this test (regardless of claims to the contrary). Yet many healthcare organizations have achieved consistent fill rates to their internal customers that exceed 98%: very world class and better than their best supplier! Many organizations generate daily status reports that communicate to their users any problems or unusual occurences with products. This innovation saves users many thousands of telephone calls while documenting service levels in an every day report card.
Today we should salutes the staff and vendor personnel who routinely count, order, track and handle the many tons of supplies, one piece at a time, which we use to treat our patients each and every day. They're not only good; they're real busy and good! Let's never forget that each and every life ever saved at our hospitals involved the sweat of someone in logistics. Be proud of that. Together we really do make a difference.
Tomorrow: “Give Thanks”
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