Operations Review on Waste Reduction, Cost Reduction and Process This memo will discuss the efficient ways that Supply Chain Management, Inventory, and Logistics have been successfully implemented in the Intermountain Healthcare Supply Chain Center. Peggy Lee, Card Program Manager at IHC led the tour in the Supply Chain Center. The goal of IHC distribution center is reduce waste, cost and centralized the high volume supplies in one location and distribute across all their facilities. This gives Intermountain better control of their inventories and negotiation advantages. Using these methods has had a great impact in waste reduction, quality and cost savings.
Supply Chain infrastructure is an important process at Intermountain Healthcare (IHC). They have learned that building strong relationships with their suppliers is critical and can help eliminate costs as well as allow them to share their savings. How IHC has achieved this, is by supplier involvement. IHC provides a mockup room specifically designed for their suppliers to show off new products and equipment allowing doctors and clinicians to test the equipment at a no cost to the supplier. Suppliers then receive immediate feedback on their products and the hospital can test products before purchase. This is a valuable approach for IHC to see results, make improvements, and negotiate effective distribution for both the supplier and the hospitals. This is gain for both parties, and in particular to Intermountain since supplies are one of the highest expenses they incur. The distribution facility was built with the purpose to manage inventories more efficiently. This facility only holds 6,000 items out of 81,000 products that can be ordered. Only those items that are housed in this facility are the high volume items, with a fill rate of 98% and accuracy of 99%. IHC has a great control on their inventories by assuring that cost of obsolescence, deterioration, and loss are managed properly. The warehouse...
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