Intalere Member Best Practice Spotlight-Summit Pacific Medical Center-Supply Chain Transformation

Issue

The Summit Pacific Medical Center (SPMC) materials management department needed to shift from a manual procurement-focused ticket system to an inventory-based, data-driven, end-to-end supply chain model to provide enhanced support and value to SPMC clinical areas.

Solution

By the end of 2017, the SPMC materials management team had succeeded in expanding and improving inventory throughout the hospital and was pushing the boundaries of integrating new areas into the materials management system. Through 5S, Standard Work and Continuous Improvement methods, the materials management team created a highly efficient, data-driven replenishment system that enabled Par Optimization Analysis and slotting logic to proactively size and adjust locations based on consumption to deliver a high reliability of inventory at a low cost of effort. Through point-of-use integration, clinical staff was spending less time managing supplies and had more of what was needed to treat patients. By reducing and sizing inventory locations to demand, supply chain staff was able to reduce their workload and convert former areas that were needed for inventory to patient care areas. To add visibility and transparency to the process, they developed a robust set of dashboards that accurately reported their progress toward goals and areas for improvement and provided important information and feedback to end users on their supply expenses.

Outcome

The improved process resulted in an increase in materials management controls and supply maintenance tracking from 2,727 physical inventory tracked locations to more than 4,364 locations. There was also a net 30% reduction in inventory levels and total hospital inventory turn rate of 4.6. Data visibility was added to department purchases, as well as enhanced controls. Clinical staff time spent on materials management was significantly reduced.

About Summit Pacific Medical Center

Summit Pacific Medical Center (SPMC) is a critical access hospital with a Level IV Trauma designation. SPMC offers 24-hour emergency services including a full-service laboratory and diagnostic imaging department. The Emergency Department is staffed 24 hours, 7 days a week by an ED physician. SPMC also operates three rural healthcare clinics and an urgent care clinic that is open seven days a week. The hospital is unique due to its size and accessibility. SPMC is proud of its low emergency department wait times and its ability to give patients access to a doctor quickly.

Check out the project video and view the Summit Pacific Medical Center page in the 2018 Intalere Best Practices Compendium.

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