This October, the Future of Sourcing Awards will celebrate organizations and individuals that have shown innovation, leadership and transformation in categories that are critical to the sourcing industry. Interviews with the finalists provide helpful insight about their projects, the problem they sought to solve and the impact to their organizations. Read about a new innovative team at Cambridge Health Alliance that proposes new opportunities, analyzes contracts, utilization, product standardization and many other cost savings initiatives.
Can you outline why your team embarked on this project and the problem that needed to be solved?
This initiative started in response to the need to develop a Supply Chain Analytics team. Cambridge Health Alliance leadership realized the potential of better managing vast amount of supply chain data. The Senior director of Supply Chain Management drafted a proposal to begin implementing analysts to work with the data and identify cost savings and utilization improvements for the organization.
How were things done originally and what was the inspiration to innovate the process?
There were very little analytics incorporated into supply chain strategies prior to the onset of the analyst team. The purchasing manager would run some usage data from the system and put together a projected cost impact as new contracts were presented. Today the team proposes new opportunities, analyzes contracts, utilization, product standardization and many other cost savings initiatives.
What KPIs did you use to measure success for this project? (For example: performance, customer satisfaction, revenue, sales or relevant financial gains?)
The initial analyst was brought in on consulting, trial basis. After a few months, ROI was measured based on total savings dollars identified. Cambridge Health Alliance did not begin working on implementing the opportunities right away, but did see the value in moving forward with a second, third and then 4th analyst for the team, focused on varying areas, such as utilization, contracting, value analysis and financial analysis.
How do you plan to ensure that the new model remains relevant and adapts to the future needs of the market?
The supply chain analytics program continually evolves to meet the needs of the organization. Members of the team work with committees and peers outside of the supply chain department, such as IT, nursing, operating room, facilities, finance and other clinical areas as the unique skills of our supply chain analysts are needed.
What advice do you have for those who may want to implement this innovative approach in their own organizations?
Go for it! The analyst team has been such a huge asset to the organization in more ways than just providing insight to saving within the supply chain. The team works to bring cohesiveness to the organization, breakdown silos, gives a different perspective which allows for better strategies within the organization pushing us further into the future of healthcare.
What can you share that other companies can take as a “lesson learned” about talent management from your project?
The approach of building a team one person at a time was a good strategy. Implementation is hard in most areas, as people resist change. Our team was easily accepted, but proving the value as each new member came on board. Let your analysts be creative and a forum to voice what they identify as needs and opportunities which providing support of senior leadership.
Region:
