Summary
Application:
- Supply Chain
- Laboratory
- Admissions & Registration
- Pharmacy
- Nursing
Products:
- Labels
- Wristbands
Situation:
- Multi-hospital health system was not standardized in their labels and identification category, and was using multiple products and vendors
- An easy conversion process was necessary to become GPO-compliant
Outcomes:
- Annual savings potential of up to 60% across all products in this category
- Easy, stress-free conversion
- SKU and vendor standardization
- Additional GPO rebates
“Thank you for taking the time to stop by our departments to collect samples, that was extremely helpful. It has been very easy working with you (Caresfield) and you have been VERY helpful with this potential conversion process. I appreciate all of the work you are doing and for always communicating with us where we are at in the process. I am very excited for the potential cost savings this will bring to our organization! I understand these conversions take time and that a few hands are needed in the works but you have helped us make it an easy process with our departments.”
- Supply Chain Analyst at leading Academic Medical Center
Background
A large, academic health system based in California found that they lacked standardization of their label and identification products across several sites. They were purchasing from multiple different vendors in multiple different departments. Supply Chain found that their master item data within their ERP system was also inaccurate, including obsolete item numbers or missing information. It was imperative that their data accuracy be restored within their ERP system to standardize the SKUs used through their facilities so that they could become compliant with their National Group Purchasing Organization (GPO). Being GPO-compliant not only would help them with recognizing cost savings in this category, but would also provide an additional revenue stream back to the organization in the form of GPO rebates.
Challenge
Multiple departments were making decisions on their own, without guidance from Supply Chain, on which items to purchase and from which vendors. Supply Chain had inaccurate data, including items that have not been purchased for years, inaccurate UOMs, and inaccurate item descriptions. Supply Chain needed an easy, fool-proof conversion process to help them clean up their purchasing data and make it easy for department managers and clinicians to convert to quality products.
In addition to the standardization and data challenges, Supply Chain needed a vendor that met their following requirements:
- Responsive, on-site sales representative to support them throughout the entire conversion process
- Made in U.S.A. manufacturer to ensure short lead times of quality products
- Premier-contracted Supplier to ensure GPO compliance
- Enough cost savings to justify a full conversion of this product category
Solution
Caresfield provided an easy, stress-free conversion process for the health system. This involved collaborating with Supply Chain and department managers to collect samples of critical products used throughout the hospital in this category. Caresfield sent out a Certified Healthcare Label Technician (CHLT) to spend approximately 10 minutes at each department collecting their critical wristband and label samples. Critical items included their main admission identification bands, alert wristbands and related labels, labels printed in laboratory and pharmacy, and commonly-used communication (printed message) labels for nursing. The CHLT confirmed any label or identification requirements and collected a small sample item that was used to accurately cross reference to Caresfield’s functionally equivalent item. This process allowed clinicians to spend minimal time on this product conversion, while Caresfield’s CHLT collected accurate and critical product information.
In return, Caresfield’s dedicated product management and pricing teams confirmed each sample with a Caresfield stock item. This step ensured that accurate samples were sent to each department manager for product evaluation and testing. Samples were sent within a week of the on-site sample collection and department managers were able to spend minimal time converting and standardizing products. Caresfield also provided Supply Chain and department managers with a full product listing, cross referencing their current critical items with Caresfield Item Number, Description, UOM and EA/UOM to accurately update their ERP purchasing system.
Result
This academic health system was able to complete the full conversion to Caresfield’s GPO-compliant label and identification products in record timing. By providing on-site, live support to coordinate this conversion, Caresfield was able to ensure this conversion took little effort and time of Supply Chain and department managers. Caresfield was also able to cross reference many “custom” competitive items to stock items, reducing lead times and costs associated with purchasing a “custom” product. In a single laboratory label alone, Caresfield was able to save the health system approximately $40,000 in annual savings. The system was able to re-allocate these funds to other areas, achieve standardization, improve lead times, and access additional GPO-rebates by converting to Caresfield.
Request a visit from a Certified Healthcare Label Technician