Kaiser Permanente Supply Chain




Prepared for the
California State University
East Bay


Skip Skivington
Interim Vice Pr...
Today’s Discussion

  Kaiser Permanente “At A Glance”
  Kaiser Permanente Supply Chain Overview

  Careers in Supply Ch...
Kaiser Permanente At A Glance

  Large Integrated Healthcare Delivery
   System
  $34B Revenue
  Would be ~ 60 on Fortu...
Kaiser Permanente At A Glance (continued)

  26 New or Expanded Hospitals Planned
  > 430 Medical Offices
  > 13,000 Ph...
Kaiser Permanente Supply Chain:
Large, Fragmented and Complex
1,200              Multiple Parallel     54 Systems    1,000...
Supply Chain –
Scope of Responsibility
 Provide assurance of supply and cost savings through
 the efficient operation of i...
Current Goals




                                              Sarbanes-
                                  Process &
    ...
Supply Chain – Opportunities

  California Supply Cost Savings ~ $30M
  Reduce Contract Courier Spend
  Contribute to “...
Supply Chain
Operational Results
   Supply Cost Savings - $32M
   Product Support – 98.5% contract compliance
   Docume...
Northern California
(Livermore)
  2,600 SKU’s
  2M Lines Picked – 99.8% pick accuracy
  .5M miles driven
  5K Pallets ...
Product Support Services
The Product Support Team enhances the delivery of
high quality, cost effective healthcare by assi...
Mission Critical Support

    Workplace    Committe      Quality      Service                          Secure     Regulato...
Careers in Supply Chain at
Kaiser Permanente
Supply Chain Manager
 Description: Reviews existing procedures and examines o...
Leadership Qualities

    Be passionate!!!
    Be inquisitive in all areas of work and life
    Be serious, but don’t t...
Thank You & Continue to Thrive




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Skip Skivington Presents the Kaiser Permanente Supply Chain

  1. 1. Kaiser Permanente Supply Chain Prepared for the California State University East Bay Skip Skivington Interim Vice President of Supply Chain March 8, 2007
  2. 2. Today’s Discussion  Kaiser Permanente “At A Glance”  Kaiser Permanente Supply Chain Overview  Careers in Supply Chain at Kaiser Permanente  Supply Chain Leadership Qualities The Supply Chain “. . . has evolved into a profession that values strategic thinking, analytical skills, and the use of technology -based tools. Those capabilities are gender and race independent. This field is fertile ground for talented individuals.” - Nancy Haslip, Past President, Council of Logistics Management 2
  3. 3. Kaiser Permanente At A Glance  Large Integrated Healthcare Delivery System  $34B Revenue  Would be ~ 60 on Fortune 500  Labor Management Partnership with 33 Participating Unions  9 States & the District of Columbia  8.6 Million Members  37 Medical Centers 3
  4. 4. Kaiser Permanente At A Glance (continued)  26 New or Expanded Hospitals Planned  > 430 Medical Offices  > 13,000 Physicians  > 156,000 Employees  > 450,000 Surgeries/Yr  > 85,000 Deliveries/Yr  > 109 Million Prescriptions/Yr  > 34.6 Million Doctor Office Visits 4
  5. 5. Kaiser Permanente Supply Chain: Large, Fragmented and Complex 1,200 Multiple Parallel 54 Systems 1,000+ Medical Centers and National Contracts (Competing) Vehicles Medical Offices Distribution Channels – Pharmacy, IT, Records, Pathology, Linen, Food, Supplies 210,000+ Approximately 2 Primary Suppliers 184,000 Stock 8 Secondary Approximately 1,500 Keeping Units Warehouses Supply Chain Employees 1000’s Store Rooms Insight: Kaiser Permanente supply chain closely resembles retail/FMCG 5
  6. 6. Supply Chain – Scope of Responsibility Provide assurance of supply and cost savings through the efficient operation of its various departments:  Start-Up Services  Product Support  Document Services  Regional Records  Fleet & Vehicles  Regional Couriers  Central Stores & Transportation 6
  7. 7. Current Goals Sarbanes- Process & Reduction Systems Diversity Supplier Goals for Oxley Cost 2007 Organizational Alignment e-Sourcing Foundational Goals of our Internal Communication strategy Prioritization & Expectation Management Effectiveness of our Approach 7
  8. 8. Supply Chain – Opportunities  California Supply Cost Savings ~ $30M  Reduce Contract Courier Spend  Contribute to “On-Time” opening of all new construction projects  Maximize Print Savings Opportunities via leveraging  Continued reduction in Work Place Safety injuries 8
  9. 9. Supply Chain Operational Results  Supply Cost Savings - $32M  Product Support – 98.5% contract compliance  Document Services – HealthConnect print management  Fleet & Vehicles - $4M annual vehicle replacement & fleet maintenance  Regional Couriers – Delivery of pharmacy, lab specimens and medical records  Regional Records – Manage over 40M medical records & X-ray inventory  Start-Up Services – Purchase and delivered $350M  Print Shop & Graphics – Produced 75M impressions  Central Stores & Transportation – Delivered $65M in medical supplies 9
  10. 10. Northern California (Livermore)  2,600 SKU’s  2M Lines Picked – 99.8% pick accuracy  .5M miles driven  5K Pallets – 99% on-time delivery rate  Average adjusted fill rate of 99.5% 10
  11. 11. Product Support Services The Product Support Team enhances the delivery of high quality, cost effective healthcare by assisting customers to recognize and obtain the benefits of National and Regional Product Standards. Facilitate Local Product Councils Implement Product Conversions Committed to first class service Consult with Vendor relations management. National Sourcing Local and Regional Product Councils. Teams Determines product needs and issues. Conversion plans for all KP Supply and Group Purchase Agreements. Champion Supply Cost Savings Monitor Compliance 11
  12. 12. Mission Critical Support Workplace Committe Quality Service Secure Regulatory Financial Safety d, Aligned Leadershi Leadershi Automation and & Capable Security of Medical Contract p p Workforce Records Compliance Innovation Cost Operations Material Services Service Quality/Regulatory Workplace Safety Medical Records Retention Sarbanes-Oxley Remediation Assurance of Supply Day to day operations AQSCI Model by QPGROUP 12
  13. 13. Careers in Supply Chain at Kaiser Permanente Supply Chain Manager Description: Reviews existing procedures and examines opportunities to streamline procurement, warehousing, distribution and financial planning to meet product distribution needs. Directs activities to limit costs, improve accuracy, customer service, and safety. Makes decisions regarding the movement, storage and processing of inventory. Key Duties:  Develops customized strategies providing high customer service levels and reduced cost  Responsible for the physical custody and overall safeguarding of the inventory  Responsible for the efficient flow of product from supplier to customers  Provides information, analysis, and recommendations on overall operations Required Skills: Broad knowledge of the supply chain: inventory management, distribution center operations, transportation, and supplier operation; expertise in facility layout, cost control, cost/benefit analysis, productivity improvement, and work simplification; strong leadership and people management skills; systems development knowledge desired; background needed in problem-solving, analysis, logistics strategy, or organizational planning; and presentation skills. Career Path: Supervisory experience in materials handling and order fulfillment, facility layout, planning or distribution is needed. Success in supply chain management may lead to vice president of operations, director of materials management, or director of supply chain. 13
  14. 14. Leadership Qualities  Be passionate!!!  Be inquisitive in all areas of work and life  Be serious, but don’t take yourself too seriously  Maintain a sense of humor  Listen to stories, become a good story teller  Have healthy diversions  Own:  Your career path  Your physical health  Your mental well being 14
  15. 15. Thank You & Continue to Thrive 15

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