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Assessing Hospital Supply Chain Software

Comprehensive Guide for Supply Chain and IT leaders

Before getting started

Transforming supply chain operations is critical in responding to the complex challenges of the current and future healthcare landscape. It requires all stakeholders to act on a vision of collaborative financial stewardship by equipping supply chain teams with better tools, technology, and resources – resources that not only lighten their load, but also streamline the evidence-based decision-making process so teams are elevated above managing daily fires to make strategic organizational contributions.

Deciding to improve supply chain operations with a software partner is a start to addressing critical supply chain challenges, but choosing the right partner is not always a simple decision.

Budget, timing, ease-of-use, scalability, breadth, outcomes… these are just a few of the considerations at play when attempting to select a supply chain operations software.

However, healthcare leaders can simplify the selection process from the start by identifying the kind of journey the company provides: will the company serve as a vendor or strategic partner? The first is transactional, while the latter is transformative.

This guide will support an evidence-based evaluation as you explore which approach best meets your organization’s strategic goals.

Ultimately, prior to making any healthcare technology purchasing decisions, it’s important for you and your team to be able to confidently answer questions, including:

  • What core internal and market needs are driving the urgency to adopt new software?
  • What incremental changes outside of our ERP can drive the most efficiencies?
  • What impact do we expect and what organizational goals would this software help support?
  • Which partner is the best fit for our unique needs?

First Things First
Begin with the “Why”

Clearly establishing some of the key drivers can be helpful in determining how to proceed, where to look first, and who to involve in the decision-making process.

The why

Key general market forces driving the need for adopting supply chain software:

  • Shrinking margins increasing pressure to
    reduce costs
  • Labor shortages forcing teams to do more with
    fewer resources
  • Product shortages and backorders
  • Difficulty reducing risk and maintaining
    compliance with accrediting bodies
  • Mergers and acquisitions

Key internal processes driving the need for adopting supply chain software:

  • Manual, inefficient processes
  • Ballooning spend
  • Missing, siloed, or lack of confidence in data
  • Inability to benchmark against peers
  • Lack of standardization in processes and policies
  • Inability to consistently enforce policies
    and procedures
  • Lack of physician engagement in supply
    chain decisions
  • Disproportionate resources to execute
    aggressive goals
  • Lack of transparency across facilities
  • Vendor consolidation

Any software decision should align with the strategic goals of your organization. Narrowing the “why” behind your reason to explore healthcare operations software will help you set expectations for results, trade high vendor counts for the most appropriate strategic partner, and build the best game plan.

Assemble your buying team

Your supply chain operations project should include an interdisciplinary team that is actively involved in evaluation and decision making. This team should consist of key functional areas where the impact of adopting supply chain software will be most experienced as well as strategic leadership to define vision. The following example outlines the types of expertise each role brings to ensure your project is clinically integrated, operationally feasible, and financially justified:

Key Stakeholders*

Chief Supply Chain Officer/ Chief Procurement Officer/ Supply Chain Lead

Define overarching supply chain vision: Align key department heads to address and focus on key priorities to drive strategy and decision.

CFO/ Financial Lead

Define overarching supply chain vision: Align key department heads to address and focus on key priorities to drive strategy and decision.

Value Analysis Lead

Define pain points in the values analysis and new product introduction process; Lead user feedback for process improvement.

CMO/CNO

Define overarching supply chain vision: Align key department heads to address and focus on key priorities to drive strategy and decision.

Key Department Heads

Ensure key businesses needs are represented with functional area of expertise; Representation from materials management, strategic resourcing, clinical resource management, vendor relations, purchasing, contracting, compliance, etc. as needed.

CIO

Define overarching supply chain vision: Align key department heads to address and focus on key priorities to drive strategy and decision.

*All health systems are different. If a role listed is not in your organization, replace with an equivalent one.

Clearly Defined Research
What You Should Look for in a Vendor

Nearly 9 in 10 healthcare executives believe that disconnected clinical, operational, and financial systems keep them from doing their jobs efficiently. With the right partner, organizations can proactively build a strategic, sustainable process guided by the data, insights, and digital tools needed to make informed, accelerated, compliant, and quality-driven decisions across the supply chain.

Whether you’re moving from manual processes to a software solution or transitioning to a different software partner altogether, change is a major investment. It can be burdensome, and if done without proper planning, can easily end up sucking resources away from your strategy rather than fueling it.

As a result, not unlike what supply chain leaders do when considering introducing a new piece of medical technology, looking at the total investment of a software, both the cost and the value, is critical. When researching healthcare supply chain software, here are some of the most important points to evaluate.

Clarify vendor focus

With the rise of vendor consolidation, there has also been an increase in vendors who “do supply chain software.” However, healthcare is complex, so be comprehensive when evaluating generalists who say they can do it all. Healthcare requires specific workstreams, from physician contracting to supply chain workflows, that are nuanced and demand high levels of compliance. When evaluating partners, be sure they understand the intricacies of healthcare and are grounded in the common goal of improving patient outcomes.

During your review, ensure the software vendor:

  • Is healthcare-specific and remains focused on improving healthcare supply chain operations
  • Prioritizes quality, cost, and outcomes and maintains an evidence-based focus
  • Has industry subject matter experts on staff guiding their strategic direction and software decisions
  • Is GPO agnostic to ensure transparent data
  • Makes data a priority – consistently updates data to ensure accuracy
  • Makes security a priority and earned high security
    standards, including HITRUST certification, so your data and patients are protected

Know where they play

Siloed solutions struggle to meet the mark in today’s broader healthcare ecosystem. From an initial medical rep visit to ongoing contract management and everything in between, there are unique yet dependent workflows and data sets that unfold. As a result, many healthcare organizations are looking beyond point solutions to systematically protect their workforce experience and address their complex, multi-faceted needs with an enterprise vendor. Here are some key areas to consider when assessing an end-to-end supply chain operations software partner to help support standard processes throughout your organization:

Siloed Solutions

*symplr is GPO agnostic and is complementary to GPOs, not a service replacement.

Understand the customer partnership

It’s important to clarify what role you will play within your vendor’s ecosystem during your decision-making process. When in discussions with potential software vendors, ask specific questions around exactly what engagement looks like throughout your partnership. Support is a foundational expectation. What else do they offer to make it a true partnership, not just a contractual vendor agreement? With the complexity of today’s healthcare ecosystem, organizations seek more than basic support. A strategic partner should provide:

  • A dedicated point of contact to address needs or challenges
  • Customer collaboration boards to guide product strategy
  • Intentional methods/channels to submit feedback
  • Consistent strategy sessions and business reviews to ensure key outcomes are communicated and used in decision making
  • A culture where open, honest conversations can be had

Know what it takes to get off the ground

This is one of the most critical points of evaluation. Healthcare supply chain is complicated, and ideally, software should make it simpler. However, success does not occur overnight. Request a detailed project plan that aligns with your organizational goals to successfully navigate you through planning, designing, executing, and closing out of the implementation process. Also be sure it follows a consultative approach and has an established timeline.

Additionally, before any decisions are made, it is imperative to understand what will be required of you and your team during the process so you can allocate resources accordingly.

Plan

Design

Execute

Close

Key questions:

  • What is your implementations methodology?
  • What is the projected timeline and the different phases?
  • Will we have a dedicated person that will guide us through the implementation process and help ensure success?
  • Are there published training materials our teams can access on-demand?
  • What configurations are available?
  • What does data migration processes look like, if any?
  • What can I expect in terms of communication throughout this process?
  • What will be required of me and my team throughout this process?
  • How will my team be supported after go-live?

Before getting started

When it comes to healthcare, experience matters. Has the vendor had demonstrable results in the specific area(s) of supply chain you are looking to optimize?

Consider the following:

  • Ensure the vendor has referenceable customers you can speak with.
  • Clarify legacy – ensure the partner has years of experience within the function you are trying to optimize and is able to offer you strategic direction and best practices based on market knowledge and accrued industry experience.
  • Identify what key, demonstrable outcomes are achieved with using this software, i.e, similar customer partners experience:
    • 80% reduction in decision-making time
    • 90% physician engagement
    • $1.5M identified savings opportunities
    • 90% reduction in time spent on contract-related reporting
    • 50% reduction in time spent managing contract documents
    • 12% annual spend reduction from auto-renewal management
sProvider CredentiallingVerification

Bringing it all together

Aligning your core stakeholder needs with the strategic vision of your organization will be the guiding light to setting your organization up for success when making a software decision. At the end of the day, when adopting healthcare operations software for your supply chain, you embark on a journey with the company and solution you select. A strategic partnership isn’t transactional – it is inclusive, consultative based on your team’s needs and larger vision, and reaps the greatest reward for your healthcare organization.

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