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SPANNING THREE DECADES OF VALUE MANAGEMENT LEADERSHIP

March 1, 2002

CREATING THE FUTURE OF SUPPLY CHAIN MANAGEMENT

Robert T. Yokl - President

The HCP Group, Ltd. 

“ Supply (Chain) Management is the identification, acquisition, access, positioning, and management of resources an organization needs or potentially needs in the attainment of its strategic objectives.” 

                                Institute for Supply Management (ISM)

Supply chain management has had many definitions over the years, but I believe the Institute for Supply Management has wordsmithed a definition that has the potential to become the standard in all industries.   ISM’s definition positions us to move from the traditional activities of buying, sourcing and distributing supplies to shaping and influencing the physical, financial, informational and relational aspects of managing materials from acquisition to disposition. It opens up new vistas for MMs to increase revenues or reduce cost in any aspect of the supply side of your organization.

The Four Pillars of Supply Chain Management 

Procurement à Logistics à Value Analysis à Inventory Management 

To become a leader in supply chain management you will need to be strategically positioned in the “Four Pillars of Supply Chain Management” to stay competitive in your marketplace. This will require the streamlining and reinventing of your supply chain’s structure, roles, functions and systems to meet the challenges in today’s fast-paced, ever changing healthcare marketplace. The question is are you ready for this paradigm shift at your healthcare organization? 

No longer is it sufficient to competently manage and control materials at your healthcare organization, when you now have the power to move, alter, expand and enhance everything that moves through your supply chain.  As ISM states, “supply (chain) management has become a strategic requirement for success for organizations throughout the world, and mandates strategic and innovative action by supply management professionals.” 

Strategic Value Analysis™

 The #1 Smart Strategy For Driving Cost Out Of Your Supply Chain 

Of all the strategies that you can employ to streamline and reinvent your supply chain the most powerful is Strategic Value Analysis ™.  It is a strategic, function-oriented, systematic team approach for providing, designing or investigating the right functions (primary, secondary and aesthetic) for the millions of dollars of products, services and technologies that are required to operate your healthcare organization annually.  Although, value studies focus on cost, improvements in quality/performance are also paramount in the value equation.  The value methodology can be applied to any product, service, technology, structure, function, process, procedure, or system in your healthcare organization.  Its goal is to ascertain through value studies those valued characteristics deemed most important by your customers (internal and external) in your supply chain and provide them efficiently and effectively.  The value methodology is a powerful tool for solving problems, increasing revenues or reducing cost, while maintaining or improving the performance and quality of a product, service or technology.  Strategic Value Analysis™ is most successful as a long and short term strategic approach to cost and quality improvements.  Historically, the payback has exceeded 25 to 1 ROI.  If you were to focus on just one pillar of the “Four Pillars of Supply Chain Management”, the value analysis pillar would be a driving force in mastering the other “Three Pillars” by producing strategic and innovative action in procurement, logistics and inventory management that would lead you to the “new frontier” of supply chain management.

 Copyright © 2002 The HCP Group, Ltd.

Robert T. Yokl, President, The HCP Group, Ltd., has over 35 years of experience as a consultant and manager in the field of Supply/Value Chain Management and is one of the country's leading healthcare experts in value analysis, value engineering and materials management. He is the developer and program leader of the award winning Certified Value Analysis Practitioner Training Program™. Mr. Yokl is also the developer of the healthcare industry's leading ValueNetCentral™ Value Analysis Software. Over the past two decades he has trained thousands of healthcare managers in his patented Strategic Value Analysis™ and Team-Based Project Management™ processes and has assisted scores of organizations in developing their own value management programs. He has published six books, videos and audios on supply/value chain management. His latest book being, “ Strategic Value Analysis™: The #1 Smart Strategy for Taking Cost Out of a Healthcare Organizations’ Supply/Value Chain”.