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by Strategic Value Analysis® in Healthcare
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Savings Beyond Price -Weekly eNewsletter - Feburary 22, 2011
Robert T. Yokl
President & Chief Value Strategist
Chief Supply Chain Officer: Is this a Trend?
I’m seeing a few hospitals and systems’ MMs using the title of Chief Supply Chain Officer (CSCO) to designate their elevated role in their healthcare organization. Is this a trend or a one-off for only a few hospitals, systems and IDNs?
The term CSCO is borrowed from industry, where the Chief Supply Chain Officer’s role provides a way for supply chain to earn a place in the boardroom and to assist in driving strategic decision making. The CSCO has emerged as a key stakeholder in companies to make supply chain transformation happen. The principle role of this individual centers around planning.
What industry has discovered is that supply chain managers are good at what they do operationally (keeping the train running on time) which is called LEVEL I, but what has been lacking is the “vision thing”: Looking beyond day-to-day supply chain operations to focus on planning (LEVEL II) – setting goals, devising strategies, outlining tasks and schedules to accomplish their preset goals.
I can’t disagree with this analysis! If healthcare supply chain professionals want a seat at their senior management table they too will need to look beyond their day-to-day operations (LEVEL I) and move to LEVEL II - planning to create a supply chain vision for their healthcare organizations.
No longer can we let our hospital, system or IDN senior management do this planning work for us, if we are to elevate our own positions in our healthcare organization. I remember, when I was a MM I did my own planning; no hospital executive told me what my vision would be. I told them what strategic direction my organization should be going with supply chain management. It works much better that way!
Clearly, healthcare organizations should be considering the new position of CSCO at their hospital, system or IDN because it can give your healthcare organization a strategic advantage. Even if you are at a small hospital, you should consider yourself a CSCO or you will be pushed and pulled in the wrong direction by your senior management. You are your hospital’s supply chain expert, so don’t give up your rightful seat at the table when decisions are being made about the future of your supply chain department. It is mission critical for you to do so!
Warmest Regards,Robert T. Yokl
Chief Value Strategist
Strategic Value Analysis® In Healthcare
Bobpres@strategicva.com
1-800-220-4274Your Partner In Savings Beyond Price™,
P.S. If you would like to know more about this topic, you might want to review what a strategic planning process looks like to get you off to a fast start on your own supply chain planning process. It is mission critical that you do so!
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