The Strategic Supply Chain- Step Four

Continuing our series on how to build a strategic supply chain, in this article, we will look at Step Four. To date, we have looked at Steps One through Three. To review:

1.?????Assess your supply chain operations capabilities, and identify potential blind spots and gaps.

2.?????Develop a supply chain strategy that aligns physical operations with digital infrastructure.

3.?????Incorporate an operations excellence program to drive continual improvements.

Step Four focuses on your System’s Technology strategy.

4.?????Challenge your system/technology strategy – focus on commonality and integration opportunities.?Prepare the organization for the cloud-based ERP solutions.

Systems and technology have the potential to deliver significant benefits to an organization.?In many cases, systems are not integrated and were implemented with the ‘path of least resistance in mind’, which could leave the organization in a sub-optimized state.?It is imperative to review all of your current systems and technology to understand how it supports the business, and identify potential duplicative systems/technology and where integrations may benefit the organization.?It is critical to assess your business needs and determine where changes are required in your system/technology strategy.

Many, if not all Health Systems are cobbled together from previously-existing stand-alone hospitals or systems. The result is a mish-mosh of systems, technology and operating strategies. The challenge is to sort them out, analyze them (in Step One), merge them into a cohesive supply chain strategy (Step Two), implement an Operational Excellence program (Step Three) and to continue to challenge those strategies so as to align commonalities and implement integration opportunities.

This step can take some time, because (1) it is difficult to identify all the parts, commonalities (and possible commonalities) and integration opportunities, and (2) the components and activities of the Health System itself are constantly changing. Teams must be assembled to pour over data, identify and enumerate possible actions, grade and rank those possibilities and recommend actions- taking in mind current resources, facilities and capital equipment requirements, staffing needs, etc., all while in a moving vehicle. This task is daunting, but it demands to be done and requires an enterprise-wide commitment to its successful implementation.

Without a doubt, this process will require the assistance of resources from outside the organization to guide it through the exercise and to monitor the results. By identifying commonalities that exist within the System, it becomes possible to craft strategies that make use of existing tools, equipment, skills and resources that integrate current resources with needed additions- thereby achieving improved performance while optimizing the commonalities and existing resources present in the System.

This is an arduous challenge and will require continued, dedicated effort to achieve.

Prepare the organization for the cloud-based ERP solutions.

Healthcare is looking to leverage other industries’ best practice with a move to the cloud. With the transition to a cloud-based ERP solution comes the potential to significantly impact the organization, in a positive fashion and in some cases, negatively.?Prior to making the shift to a cloud-based ERP solution, we recommend that organizations identify how the new solution will impact operations, as well as, the organizational structure to successfully migrate away from the legacy system.?In many cases, it is assumed moving to a cloud-based system is simply a ‘lift and shift’, which is far from the truth.?Investing in a new cloud-based ERP is going to require a significant amount of resources to successfully implement and we stress the importance of being prepared for the change, and starting sooner than later.

As stated in the previous paragraph, movement to the cloud requires assessment, analysis and hours and hours of planning and discussion. It is not something that can be done in a cavalier manner, and the impact of the move will impact virtually every area of activity in the organization.

Here are the recommended steps to take before, during and after a move to the cloud:

1.????? Establish a team. Moving to the cloud requires input from ALL the stakeholder, so a team devoted to the project should be identified with both C-suite approval and C-suite active participation.

2.????? Hire an Expert to Help.? Movement to the cloud is outside the day-to-day activities and experience of those working within the areas affected by the transition, so it will be prudent and necessary to hire someone experienced in the process to help your organization make its way successfully to the best course of Action

3.????? Do the research and Analysis. You will need to look at:

a.????? Current ERP(s) in place across the System

b.????? Compatibility of those systems

c.????? Capability of existing systems to meet future needs

d.????? Impact of moving to the cloud on current operations

e.????? Options, vendors, systems available

4.????? Select the best Solution based on your research and analysis

5.????? Implement your chosen solution

6.????? Monitor, review and revise as needed.

Let Us Help. For over forty years, the St. Onge Company has been helping organizations both large and small craft designs to make their supply chains operate at peak efficiency. Our Healthcare Team is currently working with many of the nation’s leading HCOs to help them optimize their supply chains of the present and to plan, design and implement the supply chains of the future.

For information on how we can help your organization, contact Fred Crans at [email protected] to set up an exploratory conversation.

Fred Crans is a Business Development Executive, Healthcare for the St. Onge Company, and a veteran of fifty-nine years in healthcare. In 2020, he was inducted into the Bellwether League, the National Health Care Supply Chain Hall of Fame.

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