Sutter Health Supply Chain tackles 8 issues 8 ways to Sunday
On interacting and integrating with non-acute care facilities, particularly in context with different classes of trade and demand/supply patterns:
Lee Ayers, Senior Director, Supply Chain Operations: “In 2021, we centralized our Supply Chain support for non-acute care facilities under a single Regional Director. Previously, Supply Chain managers in this space felt like an island on teams that were hyper-focused on acute operations. Aligning these leaders and functions under a single Director increased synergy and paved the way for further transformation. We are currently implementing Kanban and transitioning traditional Supply Chain replenishment from clinicians back to our team. Demand planning is accomplished centrally by our corporate analysts, but execution is decentralized at the local facility level. Where possible, we deliberately intertwined many classes of trade (pharmaceuticals, lab specimens, and medical supplies) into our courier model, so that we max out truck space and pay minimal delivery fees.”
On supporting and participating in sustainability initiatives … as a California organization:
Jennifer Carlson, Senior Director, Supply Chain Procurement: “Sutter has a robust program in place to collect and reprocess single-use medical devices that are FDA approved for such a process. This reduces the amount of waste that we generate and allows us the opportunity to buy back the devices at a reduced cost. We collect and recycle sterilization wrap but have also increased utilization of the rigid sterilization containers to minimize use of disposable wrap. We have also decreased utilization of disposable sharps containers by partner with a vendor that offers reusable options. We are also evaluating several composable options as part of a food services initiative and are standardizing to coreless toilet paper rolls and other recycled paper products.”
On balancing the risks and rewards of global sourcing with domestic and local sourcing on a short-term vs. long-term level:
Carlson: “We can’t provide patient care if we don’t have access to high-quality medical supplies when they are needed. Reliability in our supply channel is so important and something we took for granted in the past. In the long term, we believe a shift to more domestic manufacturing is financially sustainable, if hospitals support it and suppliers can create efficiencies on both ends to keep costs lower.”
On incorporating Diversity, Equity and Inclusion (DEI) as a priority within operations and practices:
Carlson: “Sutter Health is committed to the diversity and inclusion of our workforce and valuing the unique backgrounds and beliefs of the patients we serve. Diversity and sustainability both play an important role in our support of the communities we serve.”
On advising other organizations that may be smaller and/or have fewer resources, but still would like to emulate an award-winning model and implement in stages to grow organically:
Ayers: “I am a firm believer that if you take care of the people, they will take care of the mission. With that written, it all begins with building the right culture, an environment where the staff feels connected to mission, feels like they have a voice, feels supported when they hit challenges, and feels like they can trust their leaders. The size of an organization or how many resources they have is irrelevant; building a culture is free but it takes time and an investment. When the culture is set appropriately, employees will go the extra mile, solve more problems, surprise you with innovations, give more feedback, and ultimately, realize the vision.”
On delineating between Supply Chain’s contributions versus the GPO’s and/or prime distributor’s:
Ayers: “It helps if you think about this from different perspectives, so that you compartmentalize how we leverage services from our partners. From a Sourcing standpoint, Vizient helps us compare and minimize our costs (products and services), where Medline is simply a vendor that happens to create savings through distribution fee reductions if we buy their products. From a purely Operational perspective, maximizing distribution through Medline creates less trucks on our docks and simplifies the logistical footprint, where Vizient is merely a community that helps us share ideas with our peers. Through this lens, we ask that our partners strive to present data in a meaningful manner, that allows our teams to make quick and informed decisions. With this understanding and through lots of feedback, we have built processes with very little overlap and redundancy.”
On how an extensive Air Force supply chain experience (military) contributes to a Sutter supply chain experience (private sector):
Ayers: “The Air Force prepared me extremely well to handle a wide range of scenarios with little or no direction. They provided me decades of training, through basic training, a Supply Chain technical school and multiple degree programs. The service also gifted me years of leadership opportunities, including several tours in command cells, which greatly aided in my emergency management role during COVID. The best skill I brought to our organization from the military, is my ability to align a team to a vision, even amidst the most chaotic time in our lives. You could say it enabled me to be the right leader, at the right place and at the right time!”
On joining Sutter about three months before the pandemic hit stateside:
Ayers: “Yes, as I reflect on that time, it was almost as if it was destiny! The military and healthcare are both highly regulated industries and at the end of the day, they are both in the business of saving lives. Upon becoming retirement eligible and reviewing job postings for nearly four years, healthcare’s purpose and Sutter’s values attracted me to this new career. I even had to make a request to accelerate my retirement date from the Air Force, so that I could meet Sutter’s timeline. I am thankful for the symbiotic relationship I share with Sutter, the amazing team I work with, and I enjoy supporting our great community!”
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Rick Dana Barlow | Senior Editor
Rick Dana Barlow is Senior Editor for Healthcare Purchasing News, an Endeavor Business Media publication. He can be reached at [email protected].
