The supply chain optimization project at AZ Jan Portaels hospital achieved the following results: 1. Process improvements and new technologies like 5S, ABC analysis, and KANBAN reduced inventory levels and costs. 2. Soft benefits included improved service levels, better information and focus on core nursing activities. 3. Hard cost savings included €210,000 from technology optimizations and €491,345 estimated from inventory reductions, totaling over €831,000 in benefits. 4. Nurses now have better visibility and organization of supplies, reducing expired stock and replenishment times."

1. Optimization of the
supply chain within
AZ Jan Portaels

2. Agenda
• Frank Deckmyn: Director Facility Services AZ Jan Portaels
• Gunter Fonteyne: Partner Xeleos Health Care Solutions
1 Introduction AZ Jan Portaels
2 Scope and Objectives of the project
3 Situation before the project
4 Supply Chain Concepts Used
5 Methodology/Change Mgt/Planning
6 Results of the project
7 Situation after the project

3. 1.Introduction AZ Jan Portaels
430 beds Total annual
turnover :
81.411.848 €
565 FTE +
112 Total yearly
Specialists purchase
cost including
Employees medicines:
business unit 18.247.741
Facility Dept:
109 FTE
3311 SKU’s
Employees
Supply Chain
within Facility
17 FTE

4. 2.Scope and Objectives of the project
• Objectives: Reduction supply chain cost, optimization all
resources and improve service levels
• Scope: Flows between central warehouse and internal
departments in both directions excluding drugs and
medicines

5. 3.Situation before the project

6. 3.Situation before the project
• Causes of these bottlenecks:
– Missing clear lean processes, procedures and working
instructions
– Defragmented supply chain organization
– No optimal supply chain infrastructure
– No efficient supporting information technology
• Impact bottlenecks:
– High stock levels/High working capital
– High total cost of ownership within purchasing
– Negative perception service level
– No recall management
– No focus on core activities by nursing

7. 4.Supply Chain Concepts Used
• Lean Business Process Management
• Introduction 5S in central warehouse and wards

8. 4.Supply Chain Concepts Used
• Introduction of inventory management with ABC analysis
• Introduction of KANBAN on the wards

9. 5.Change Mgt/Methodology/Planning
•Change Mgt important: focus on key user management
•Pragmatic approach
•Methodology SAP WMS:ASAP
•Methodology Project Mgt: Prince II

10. 5.Change Mgt/Methodology/Planning
Q3 2009
Start
optimization Q1 2010
existing Go live optimised
Q2 2009 technology, start
technology ,
Start BPM, infrastructure infrastructure wards
Organization warehouse
2009
Q2/
2009
Q4
2011
Q2 2010 Q3 2010 Q4 2010 Q4 2011
Introduction Go live WMS Start roll out Completion roll
Kanban, start with scanning other dept. out
WMS project

11. 6.Results of the project
• Estimated Cost of the project:

12. 6.Results of the project
• Soft benefits of the project:
– Improved service levels and positive perception
services
– Focus on core activities nursing staff
– Better management information
– Risk management (contingency with procedures )
– Recall management

13. 6.Results of the project
• Hard benefits of the project:
Q1 2010
Optimisation technology:
Q4 2011
210.000€
Total Benefits:
831.100€
Q2 2010
Introduction KANBAN:
Total 17.382€
831.100€
Q3 2010-Q4 2011
Q3 2010-Q4 2011
Estimation
Estimation optimization inventory
optimazation reduction
wards after roll out :
expired stock:
491.345€
112.373€

14. 7.Situation after the project

15. 7.Situation after the project
Quote from Head Nurse Surgery:
“Eindelijk is er een overzicht over onze produkten.
We vinden de produkten redelijk snel omdat de schuiven
doorzichtig zijn. De verzorgingskarren zijn snel aangevuld en
bevinden zich centraal in de berging.
De voorraden zijn kleiner op onze dienst.
Wij hebben een beter overzicht wat voldoende in
voorraad is en wat er moet bijbesteld worden”