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 - March 2, 2011
Robert T. Yokl
President & Chief Value Strategist
How to Reduce Waste and Save Millions
It still amazes me, even after 10 years of positive supportable proof, how much waste there is in healthcare organizations’ supply streams. Even in hospitals with less than 100-beds we are uncovering a million dollars or more in savings tied to waste and inefficiencies in their supply chain.
The reason for this happening is that our focus has been on price and not our products, service and technology in-use cost or utilization. This is where the rubber hits the road. It doesn’t matter if you are obtaining the lowest price for everything you buy, if your cost per case, procedure, test, service, etc., is higher than that of your peers -- you lose.
If you are motivated to reduce waste and save millions you will need to change your “mindset” from price to utilization by:
1. Determining where to remove excess supply chain waste
The most effect way I know of to quickly identify waste is through Value Analysis Analytics*. Nonetheless, if you aren’t employing this powerful technique you can start by trending and tracking your supply spend by commodity group (case mix adjusted) as a first step. This data will show you the spikes in your supply utilization that need to be removed.
2. Prioritize how to remove waste to improve bottom line
Since you can’t remove all of the waste that you will discover in step one all at one time, you will need to prioritize by return-on-investment the valued-few utilization misalignments that will be achievable with your current resources. This will take the pressure off you and your supply chain team to get all waste removed a one time, and will also give you the best savings opportunities to attack first, second and third to keep your VA process orderly.
3. Show actionable dollars to be removed to gain support
One of the most important attributes of this exercise is that you can, with certainty, show actionable dollars to be removed from your supply streams to gain support from your senior management and VA team(s) to take action.
In brief, in the new healthcare economy you just can’t depend on price savings to right your boat, you will also need to dig down deeper and broader into your supply streams to remove all of the waste and inefficiencies that have crept into it over the decades. By doing so, you can reduce waste and save millions that you never thought possible. Just like me, you will be amazed at the positive million-dollar results that will come your way!
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 Value Analysis Analytics* you will find useful information in chapter seven of our FREE book “Healthcare Supply Utilization Revolution” that is yours for the asking.
JUST ANNOUNCED -
Breakthrough Game Changing Book is Yours for FREE!
Healthcare Supply Utilization Revolution
Read this book and in a few weeks save more money than you have in years. Sounds unbelievable? Robert T. Yokl and Robert W. Yokl, healthcare’s leading authorities in Supply Utilization Management, have helped hundreds of hospitals, healthcare systems and integrated delivery networks to saved close to a half billion dollars by employing the same utilization management strategies, tactics and techniques that they will teach you in this book.
The Savings Beyond Price Blog Is Back and Better than ever!
Supply Chain ValueNet
Proven Strategies, Resources and Tools You Can Count On!
- Benchmarking
- Best Practices
- Resources
- And More...!
|
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! |
© 2008 - The Strategic Value Analysis in Healthcare, P.O. Box 939, 3887 Skippack, Pike, Skippack, PA 1-800-220-4271
About SVAH - Blog - Press Releases - Technology Value Analysis - Clinical Value Analysis - Events & Speaking Engagements - Case Studies and Success Stories - General Hospital Consulting and Supply Chain Management - Value Analysis Bookstore -Value Analysis University Supply Best Price Analysis - Supply Chain Scorecard and Dashboard - Supply Six Sigma - Strategic Supply Chain Management Planning - Value Analysis Software - Value Analysis Services - Healthcare Supply Expense Reduction and Analysis - Value Analysis Team Training Programs - Supply Chain Best Practice Series TeleSeminars Savings Beyond Price Newsletter - Strategic Value Analysis in Healthcare White Papers - Supply Chain Benchmarking - FREE Savings Beyond Price Weekly Newsletter - Archived Weekly Value Analysis Articles -Hospital Consulting Clients - Contact Us