Healthcare expenses continue to rise and yet hospitals are realizing consistently shrinking margins. Healthcare supply costs are typically the second largest expense to a hospital and must be managed in a manner that ensures providers have access to quality products but also with an emphasis on cost awareness and expense reduction strategies. Healthcare supply chains must leverage their data in order to make better business decisions to reduce costs and increase operational efficiencies through the use of business analytics. Understanding what data is available and having the skillsets to compile and structure the information in a manner that makes analysis and business reporting capable is becoming increasingly important for supply chain leaders. Building a set of metrics or Key Performance Indicators (KPIs) will allow the supply chain to identify goals and work in a structured manner to achieve these objectives. Supply chain leaders must understand their data and be able to analyze the relevant information to help make informed decisions that reduce future costs, mitigate risks and drive efficiencies for the organization. This paper will illustrate why supply chain leaders must use business analytics to drive efficiencies, build measurable metrics, increase productivity, and reduce waste.
Author: Brian Bartel