Develop a Data-Driven Approach to Supply Management
It's important to understand the relationship between total supply chain cost and total operating revenue—known as “supply chain ratio”—which usually ranges from 12 to 25 percent. Do you know your current supply chain ratio?
Rising health care costs are a growing burden on many providers, making improved supply chain management an essential area for cost reduction. An effective supply chain should reduce cost without affecting the quality of care. There are many ways your institution can improve supply chain cost, including careful planning with data analytics, physician/provider lead, diligent processes, effective resource management, transparency and proper advisory services.
Executing a supply cost improvement initiative is critical, but complicated. BKD’s trusted advisors can help your organization:
- Establish a supply chain ratio and trend
- Assess supply chain costs and processes
- Benchmark specific supply cost items
- Evaluate departments, procedures or providers that are increasingly varied in supply spend
- Assess preference/procedural cards
- Develop a value analysis program
- Assess contract compliance and consignment processes
BKD can perform an on-site assessment of your supply chain processes and current data and help benchmark specific supply items across national spend data. After compiling and analyzing the data, we can help identify improvement opportunities for supply chain spend and processes for your institution.