AHRMM SME Podcast - Episode 4: Ed Hissock
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This is the AHRMM Subject Matter Expert Podcast hosted by Justin Poulin. Tune in every month as we speak with Industry Experts to highlight success stories and solutions from the field that advance the healthcare supply chain. And now, Justin Poulin with this month’s Expert…
Ed Hisscock, SVP, Supply Chain Management & Trinity Health
Our industry supports some of the most wasteful trading partner relationships
* A suppliers SG&A is the cost to get product from where it is made to the consumer
* Average SG&A for suppliers in the healthcare sector runs ~35%
* Consumer goods (which actually has similar SKU characteristics and demand) the SG&A is ~20%
* This suggests that we have ~15% we can take out
* E.g. the most costly and invasive products (implants) typically come out of a sales reps trunk
We conducted a lean event with a large supplier of implants focused on identifying waste and removing it
* We agreed at the outset to split the savings from the effort
* Trinity Health was sending, on average, 47 orders/day to the suppliers DC
* Each order was picked, packed and shipped separately, which created separate receipts and invoices
* We now send 1 order every 2-3 weeks
* Reduced labor and trans cost, net of inventory investment, by 16%
* Reduced cardboard and other packing materials by 65%