Many healthcare systems are experiencing rising operation costs and expenses due to operational inefficiencies, making it more challenging — and expensive — to provide quality patient care and engagements.
In this workshop, learn how to establish clear opportunities to optimize your labor, processes, procedures, technology, and inventory costs and a vision to integrate and optimize your current technology investments.
Become an organization that reinvents itself to accelerate efficiencies and cost reduction strategies using digital transformation to provide integrated systems and solutions for an immediate impact.
2. Session Overview
• Introductions
• Who is Alithya
• Data
• Spend Optimization
• Handhelds
• Break
• Inventory Cost Reductions
• Distributions
• Break
• Workflows
• Data Reporting
• Q&A
Together Towards Tomorrow
INTERACT 21 VIRTUAL| JUNE 14 - 16
3. Lee Spitzer
Together Towards Tomorrow
INTERACT 21 VIRTUAL| JUNE 14 - 16
Alithya
Director of Supply Chain
lee.spitzer@alithya.com
• Lives in Franklin, TN
• Been with Alithya for 5 years
• Worked with Oracle ERP for 15 years, EBS Background and
Oracle Cloud, Cloud for last 5 years
• Experience in health care, distribution, manufacturing,
maintenance, food and beverage
• Worked on over 15 Oracle Cloud SCM Health Care
implementations
• Oracle Cloud Certified – Inventory
• Integrations with Oracle SCM and Procurement Cloud
• Solutions team at Alithya
• Hobbies – BBQing, playing guitar, walking, bicycling
4. Together Towards Tomorrow
INTERACT 21 VIRTUAL| JUNE 14 - 16
My journey to Oracle Cloud and Healthcare
Healthcare Learning Curve
• Item Master / MFG Part Number / Vendor Part Number
• Big Item Master
• GPO / Contract Pricing
• Integration Dependencies, EDI, HL7
• High Velocity Transactional P2P Volume
• Stock / Non-Stock – Perpetual / Non-Perpetual
• Criticality
• JIT with main distributors
Oracle Cloud Learning from EBS
• No DBAs and Developers - Integrations
• No Java, PL/SQL – Web Services
• No VPN
• Patching / Maintenance
• 3rd Party for mobile
• Procurement and Supply Chain like EBS
5. Alithya Oracle Practice
Together Towards Tomorrow
INTERACT 21 VIRTUAL| JUNE 14 - 16
Enterprise Performance Management (EPM)
Enterprise Resource Planning (ERP)
Supply Chain Management (SCM)
Human Capital Management (HCM)
Organizational Change Management
Process Design (Redesign)
Strategic Roadmaps
Cloud Assessments & Health Checks
Training Services
Health Care
Financial Services
Manufacturing
Retail/CPG
Professional Services
Utilities
Others
Data Services
Analytics
Hosting & Infrastructure
Managed Services & Support
Integration
Security
6. SCM Healthcare Implementation
Challenges
Together Towards Tomorrow
INTERACT 21 VIRTUAL| JUNE 14 - 16
Item Master Not Clean
• Previous system in place for 10+ years
• Item Master not clean needs TLC,
active / inactive, descriptions not
standardized
• MFG or Supplier Catalog Part Numbers
Incorrect
• Lack of Integrated Solutions – HCM vs
ERP, SCM / Procurement and Finance
on different systems
• Lack of documentation
• Mobile solution is based on outdated
technology or absent
• EDI on legacy hardware
• Integrations are difficult and costly
• Difficult for reporting and analysis
Outdated ERPs / Technology Too Much Paper!
• Paper for Inventory Tracking
Transactions
• Paper for Requisition Approval
• Paper for Capital Approvals
• Stickers for chargeable products
7. Feedback From SCM Cloud
Implementations
Together Towards Tomorrow
INTERACT 21 VIRTUAL| JUNE 14 - 16
• Lessons learned
• More time from added workload
• Allocated resources to focus on implementation
• More testing
• Better understand how integrations work in Oracle cloud
• Better understand how Item Master and Blanket Purchase Agreements
• Better understanding the supplier master / supplier site structure
• Business Process Hurdles
• Didn’t understand some of the options in Cloud vs current system
• Moving toward electronic approvals was more challenging than expected
• Projects
• Key Functional Differences
• Approvals
• Data Conversions
• Understanding FBDI
• Crosswalks are critical
• PO Conversion
8. Together Towards Tomorrow
INTERACT 21 VIRTUAL| JUNE 14 - 16
Not ready Intermediate Impact Low Impact
Cultural Readiness
Technology Readiness
People Readiness
Process Readiness
Existing processes are extremely manual and repetitive; therefore
little complication exists from a technical perspective.
Cleanliness of Item master and Item number issues are known
and need to be addressed
Perpetual inventories may require Physical Inventory as part of
conversion load.
Tool to utilize for patient charging is TBD: EMR or Mobile
The OR, nursing staff and staff managing floor stock will be
asked to make process changes in order to achieve
organization-wide efficiency related to patient
charging. This effort will require a dedicated information
sharing and training campaign.
Change to perpetual Inventory for all warehouse areas will
require dedication to performing timely system transactions
Core team is strongly supportive of this effort to increase
efficiencies and has clear ideas regarding opportunities to
increase process improvement.
Nursing, OR, and floor staff are unaware of pending changes
and need to be engaged.
The nursing organizations' processes aren't consistent in terms of patient
charging. Process adjustments and buy-in will be required to increase
efficiency; nursing leadership is open to change.
The management of material flow must be reengineered and optimized across
the organization to reduce expediting charges, etc.
Ensure new processes allow expense/revenue to impact appropriate dept (i.e.
OR) vs. hitting material operations
Floor stock is managed outside of the supply chain organization; there is
opportunity to bring this process within material operations.
9. Going from status quo to leading practices
Together Towards Tomorrow
INTERACT 21 VIRTUAL| JUNE 14 - 16
Change mindset from lift and shift to lift and optimize
Review business SCM processes and evaluate honestly where you are today and key objectives and goals for the
future.
Optimization can happen during your implementation journey but also plan for optimization after your
implementation.
Improve efficiency, leverage the Oracle Cloud Solution to the fullest!
10. Data
Item Master and Blanket Agreements
Vendor Model
Inventory Organizational Structure
Crosswalks
Supplier Master
Item Master
Units of Measure
Accounting to Departments / Locations
Inventory Organizations / Subinventories / Locators
Transformation of the data and data cleansing
Leverage cleansing 3rd Party tools NuVia, DataLynx, Premier
Standardize Item Descriptions
Common Model Item Master
UNSPSC and HCPCS
Together Towards Tomorrow
INTERACT 21 VIRTUAL| JUNE 14 - 16
19. Spend Optimization
No PO/No Pay
“No PO, No Pay” is now a widespread purchasing policy, requiring a Purchase Order (PO) for
all goods and services ordered from external suppliers.
Eliminate maverick spend, complete audit trail, compliance
Together Towards Tomorrow
INTERACT 21 VIRTUAL| JUNE 14 - 16
Challenge for 100% PO Match – Pharmacy, Utilities, Credit Card, Reoccurring Expenses
20. Spend Optimization
Together Towards Tomorrow
INTERACT 21 VIRTUAL| JUNE 14 - 16
• Leverage Req to PO to Receiving to AP process as much as possible
• Requisitions
• Punchout - Office Supplies, Amazon, Grainger
• Smart forms
• Configure BPAs for all items
• Public Shopping Lists
• Define approvals thresholds on requisitions, purchase orders, and invoice
• Communicate to vendor electronically
• CMK / EDI / Oracle Business Network to communicate
• Supplier Portal
• ATF Purchase Orders
• Opportunities for touchless purchasing
• Master Data Management
• Map UNSPSC to Categories to Natural Accounts
• Manage Items and Contracts with Blanket Purchase Agreements
• New 21C External Purchase Prices new functionality
21. Spend Optimization
Together Towards Tomorrow
INTERACT 21 VIRTUAL| JUNE 14 - 16
Cart Purchase Requisition Purchase Order
Receiving Invoice Entry Matching Payment Status
Shopping
• Hosted Catalog
• Punchout Catalog
• Forms & Spec. Request
• Enabled Contracts
PR Creator
• Enters accounts,
chart field and
shipping.
Approval(s)
• Dept $
• Optional EH&S, IT,
Other
• .
Purchasing
• Review Non-Catalog
items
• High Dollar
• Contracts
Central Rec.
• Unpacking
• Quality Checking
Delivery
• Desktop delivery
to requestor
Invoice
• PO Invoice
• Non-PO Invoice
• Direct Voucher
Approval
• Non-PO Invoice
Dept $
approval
3-way Match
Supplier
• Receives PO
• Acknowledges
• Fulfills Goods / Services
Payment
• Voucher payment
• Check or ACH to Supplier
22. Spend Optimization
Together Towards Tomorrow
INTERACT 21 VIRTUAL| JUNE 14 - 16
Considerations
• Drive compliance and incremental baby steps to No PO / No Pay. Target a requester group or vendor where
there is a challenge and see how best to align it with req, to po, receipt to ap.
• Incremental steps go and increases in compliance can go a long way
• Integrations to help with auto-receiving and invoicing when necessary
• Reporting on spend and categorization
• Minimize risks
• Compliance
• Transition your procurement team from reactive to proactive
23. Together Towards Tomorrow
INTERACT 21 VIRTUAL| JUNE 14 - 16
Devices
Review use case and gain feedback from users and vendors to get best device
Honeywell CT60
TC51
Accessories
Bases
Extra batteries
Protection
Warranties
Wireless network assessment
MDM strategy
Barcode
Label Software
Label printers
Handhelds
24. Together Towards Tomorrow
INTERACT 21 VIRTUAL| JUNE 14 - 16
Transactions
Par Counting
Receiving
Inventory
Issues, Movements, Returns
Picking and Delivery
Cycle Counting
Physical Inventory
Point of Use
Dock Logging
Signature Capture
Automated Printing
Handhelds
26. Inventory Cost Reduction
Together Towards Tomorrow
INTERACT 21 VIRTUAL| JUNE 14 - 16
Reasons
• Inventory ties up cash
• Reduce physical clutter
• Streamline business processes
• Converting on-hand / inactive old items
Goals
• Leverage systems and automation
• Process Identify and process obsolete
27. Inventory Cost Reduction
Together Towards Tomorrow
INTERACT 21 VIRTUAL| JUNE 14 - 16
Strategies to consider on Oracle Cloud
• Planning methodology, min-max, PAR, Kan-ban go from None/Reactive to Proactive!
• Move High Dollar Expense Areas to Perpetuals Cath, OR, and Lab – Mobile and EMR Integrations to
help facilitate ins and outs of these areas
• Review department spend records
• Identify consignment opportunities with Vendors
• Identify slow movers
28. Inventory Cost Reduction
Together Towards Tomorrow
INTERACT 21 VIRTUAL| JUNE 14 - 16
Identify slow movers / obsolete products
• Can you use it elsewhere?
• Can you sell back to the supplier?
• Can you donate?
29. Distribution
Together Towards Tomorrow
INTERACT 21 VIRTUAL| JUNE 14 - 16
Identify inefficiencies
Review call downs, frequency, timing, products and departments
Missed picks, frequency, timing, cases, products
Missing inventories
Does your distribution delivery model need to change?
Off-site warehouse
Central supply / general store
Internal Sourcing
Requesters
COVID impact – supplier allocations
Leverage pars and templates - shopping
LUM
Kan-Ban
Min-Max
Integrations
30. Distribution Integrations
Together Towards Tomorrow
INTERACT 21 VIRTUAL| JUNE 14 - 16
Inventory Integrated Solutions
Omni-cell
Pyxsis
Par Excellence
Helios
BlueBin
DeRoyal OSCAR
Supply Scan
Tissue Manager
Cerner
Epic
All-Scripts
31. Planning Optimization
Together Towards Tomorrow
INTERACT 21 VIRTUAL| JUNE 14 - 16
• Manual Steps
• Paper
• Physical and visual
• Minimal Manual
Steps
• Paper / Electronic
• Not evaluating levels
• Reactive / Proactive
• Analysis driven
indicators
• Evaluating Min/Max
& Par Levels
• Approval
• Some Automation
• Electronic
• Auto-replenishment
orders (IMTs or POs)
• Monitoring levels
• Seasonal event
changes
• Analysis driven
indicators
• Evaluating Min/Max
& Par Levels
• Approval
• Automation
None /Reactive Reactive Reactive / Proactive Proactive
33. Workflows
Together Towards Tomorrow
INTERACT 21 VIRTUAL| JUNE 14 - 16
Oracle BPM Worklist
Lots of notification and emails
• FYI
• Approvals
Approvals
Rules Engine
Leverage HR Data and Finance
Cost Center Manager Approval
Supervisor Hierarchy
Discrepancies
Receipts
Prices
Review over 60 day aged
34. Reporting
Together Towards Tomorrow
INTERACT 21 VIRTUAL| JUNE 14 - 16
3
4
Tactics Metric Baseline Target Impact
Increase use of electronic PO’s EDI /auto fax utilization 80%
Ensure accuracy with the item master file Item master number utilization 80%
Close PO's in a timely fashion Close PO's > 60 days < 5%
Reduce excess stock on hand Storeroom Inventory Turns 10.5 Turns
Track supply expense as a % of net revenue Supply Expense as a % of Net Revenue Finance
Supply Chain
Efficiency - KPIs
Tactics Metric Baseline Target Impact
Response time of requisitions generating POs
Date of purchase order - date of requisition
received
1 Day
Number of POs placed per FTE per month Number of POs placed per FTE per Month SCM
% of POs linked to an MMIS contract POs issued with an MMIS contract utilization 80%
Internal order fill rates PO lines issued from general stores utilization 98%
Stock outs
Inventory requests where there was 0 on hand
utilization
< 2%/SCM
Supply Chain
Efficiency – Other
Metrics
35. • Session Surveys
• Click on the session in your schedule
• Click "Session Feedback”
• General Feedback
• Homescreen
Together Towards Tomorrow
INTERACT 21 VIRTUAL| JUNE 14 - 16
36. Questions?
Or send to infosolutions@alithya.com
Together Towards Tomorrow
INTERACT 21 VIRTUAL| JUNE 14 - 16
37. Q&A | Next Steps | Contacts | Resources
Lee Spitzer
Director, Supply Chain
lee.spitzer@alithya.com
Together Towards Tomorrow
INTERACT 21 VIRTUAL| JUNE 14 - 16
infosolutions@alithya.com
Email us questions.
https://www.alithya.com/en/technology-
partners/oracle-solutions
Visit our Oracle Solutions page
https://www.alithya.com/en/insights
Read our blog posts.
https://www.youtube.com/alithya_inc
View our webinar recordings.