Savings Beyond Price™
Innovative Supply Savings and Quality Solutions That Work
by Strategic Value Analysis® in Healthcare
Did You Know...?
That Value Analysis Was Developed Back In the 1940's After World War II as a Way to Find Lower Cost but Higher Quality Alternative products and methods. This was Due to the Lack of Material Resources At The End of The War.
Savings Beyond Price -Weekly eNewsletter - Feb. 19, 2008
Robert T. Yokl
President & Chief Value Strategist
Greetings!
It’s About Quality Too!
Sometimes I think that Supply Chain Professionals don’t realize the impact they have on their healthcare organization’s quality, because I never hear them talk about quality outcomes anytime, anywhere or anyhow.
Now that Medicare is upping their standards on quality this October in order for your hospital to get paid for their treatments and procedures, don’t you think it’s about time we all clearly understand that supply chain management is about quality too.
For instance, one hospital we worked with found that they had two million dollars in inventory in their operating room that had never been used --- not even once -- in two years. What do you think the impact on this hospital’s quality would be if any of this outdated stock would have been used for an open heart surgery or a hip implant procedure?
I could cite other examples, but I think you get the picture I’m trying to paint, that the supply chain is an important “critical to quality” link at your healthcare organization. That’s why you and your supply chain team now need to become quality inspectors, as well as, cost managers in this new era of cost and quality management.
With this said, you should circle October 1, 2008 on your calendar. This is date Supply Chain Professionals will most certainly need to aggressively attack their errors and defects in their supply chain too!
Your Partner In Savings Beyond Price!
Robert T. Yokl
President & Chief Value Strategist
P.S. We have decided to give away a one year subscription to our new, not to be found anywhere else, www.valueanalysisuniversity.com money-saving and educational on-line resource ($359 value) to all of the attendees at our March 11-13 Certified Value Analysis Leadership Program. Why? Because we want these attendees to not only receive the best value analysis training in our industry, but to also have an on going resource they can use day-in and day-out to meet their cost and quality management challenges. So if you were thinking about coming to this powerful training program, now you have an even better reason to claim your seat before we close the door on new registrants!
Note: We won’t be making this one-time only offering ever again, so don’t miss out on this big opportunity to have this on-line toolbox of our little known savings and quality secrets and educational materials at your finger tips when you need them now -- and down the road!
Dynamic Contract Management Is A Lot More Than Just Bidding Your Purchase Service Contracts
“5% to 8% More Can Be Saved If You Vet Your Suppliers Before You Bid”
I was just reading an article in the “Global Logistics & Supply Chain Strategies” (this is an industrial supply chain magazine we all should be reading to acquire new ideas that won’t be found in healthcare circles) which talked about how Sun Microsystems is managing their purchase service contracts.
If you don’t know who Sun is, they are the Silicon Valley powerhouse who sells $15.8 billion dollars a year in software and workstations to Fortune 500 companies and other mega corporations around the world. Their supply spend alone is $4 billion dollars a year which makes them one of the biggest purchasers of commodities in the world.
The first thing that jumped off the page at me is how Sun is always looking for new suppliers for their contracts as opposed to sticking to their incumbents that have had their contracts for years. It is Sun’s view that “one of the big advantages to bringing in a new supplier was that their new, objective view of our operations resulted in a lot of process improvements” and “the transition process forced a rigorous review of our processes”. This was my attitude too when I was contracting for new or existing purchase services since I found that I never received new cost savings ideas from my incumbents, but I always did from new suppliers that were seeking my business.
The second thing that interested me in this article is that Sun always started their contracting process with a “Request for Information” vs. a “Request for Quotation” to vet even their incumbents before they bid new contracts. Even with your incumbents’ organizations things can change and people can change (finances, capabilities, key people have left, etc.), that you need to know about before you expend time and energy inviting suppliers to bid.
Lastly, Sun has found that they can achieve higher levels of what they called “base” services (or the things you would normally expect in your contracts) which Sun would normally pay for if they were to just re-negotiate their contracts with their incumbents vs. bidding.
These three tactics (plus employing reverse actions) have enabled Sun to save 5% to 8% on their purchase service contracts by vetting their suppliers before they bid and challenging the perception that more savings couldn’t be found in their purchase services contracts.
I think we can all learn a lesson from Sun that dynamic contract management is a lot more than just bidding our purchase service contracts in the “old ways” as we have been doing for years.
Healthcare Lean Value AnalysisTM
March 19, 2008 - 1:00pm to 2:00pm EST
Energize and grow your value analysis programs while increasing your savings yields and dramatically improving your quality.
What You Will Learn:
Learn the difference between Lean Value Analysis and traditional value analysis and product evaluation techniques.
Learn the new skills that are required to be successful with Lean Value AnalysisTM in the years to come.
How to step up your quality processes inside your value analysis program while saving more in the long run.
How Lean and Six Sigma are perfect tools for the value analysis and supply chain practitioners to gain faster and better results.
How to develop your Lean Value Analysis ToolboxTM to pack more power into your value analysis teams and methods.
How to gain your managements' buy-in to the new Lean Value AnalysisTM concepts and practices to insure long term savings and quality improvement success.
March 19, 2008 - 1:00pm to 2:00pm EST
Webinar Leader - Robert T. Yokl, President/Chief Value Strategist Strategic Value Analysis in Healthcare
Sign Up Here click here
Remember...The Webinar May Be FREE But The Information is Priceless
3-Days to Achieve the Highest Level of Supply Savings and Value Analysis Leadership and Performance!
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Sign Up for Our FREE Weekly Savings Beyond Price eNewsletter to Receive Exclusive Content Not Found Anywhere Else
PLUS as an added Bonus, we'll also send you our SPECIAL REPORT "Your Targeted Blueprint for Supply Savings Success!"
Subscribe Today!
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