Transcript Procurement Transformation Project: Phase 1 Introduction

Procurement Transformation Project
Stakeholder Update
Platform for Change
Our Landscape is Changing: Past Success does NOT Guarantee Future Success
Procurement Transformation
Why Did We Do It and What is It?
We have an obligation to ensure that the Supply Chain never
becomes the weak link in our company’s value chain.
- AND The Procurement Organization required to support
Intermountain in a “Fee for Service” environment today is
dramatically different than the Procurement Organization
required to support Intermountain in a “Shared Accountability”
environment.
- THEREFORE -
We must aggressively implement best practices and continuously
improve our Procurement infrastructure. This multi-phased
effort is our Procurement Transformation!
Procurement Transformation
Framework
Strategy
Infrastructure
People & Structure
Processes & Technology
CRM
SRM
Purchasing
Contract Mgmt
Program
Mgmt
Sourcing
Service
Offerings
Procurement Strategy
Transformation Objectives
We need a balanced approach to sustained excellence in the
future:
Our Value Contribution
•
•
•
Support CPI + 1%; deliver $60MM in cost reduction by 2016
Enhance capabilities so Procurement can help deliver cost prevention,
risk mitigation and quality improvement contributions
Prepare the Procurement organization for commercialization and
ultimately become a profit center for Intermountain in 5 years
Transformation Objectives
Our Internal Customers:
•
•
•
Offer a “one-stop-shop” for our key stakeholders to simplify their
interaction with the SCO
Streamline the decision making processes
Align our resources and activities with priorities of our stakeholders
Our People:
•
•
•
Enhance job enrichment through role clarity, career planning,
professional development, goal alignment and empowerment
Reallocate 20% of resources from transaction processing to strategic
activities
Arm team members with KSA’s to meet diverse needs of our customers
and suppliers
Transformation Objectives
Our Suppliers:
•
Implement a supply base management program to consolidate spend
with fewer, more strategic supply partners
•
Earn preferential treatment from supply base to create solutions for our
stakeholders
Collaborate with supply base to generate value; not transfer profit
margin
•
Our Processes:
•
•
Mitigate acute areas of procurement/supply chain risk
Increase strategic sourcing process rigor and reduce process variation
E-enable processes to drive more efficiency
•
Align objectives, goals, measures, metrics and incentives
•
Purpose of Solutions Manager Role
“No More / No Less” Philosophy Until We Scope This
Role in Phase 2 Transformation
• “Sell” various SCO
solutions with
stakeholders
• Stakeholder business
plans and reviews
• Committee support
• Submit projects to
sourcing
• Local support and
integration
• Clinical support and
integration
CRM
SRM
• Supplier performance
management
• Alliance development
• Committee support
• Non-sourcing contract
negotiations
Program
Management
• Governance oversight
• Service excellence to end users
• Utilization mgmt, risk mitigation,
• Compliance mgmt
• Contract performance mgmt
• Operations management (where
applicable)
• Link supplies to procedures to
outcomes
Solutions Manager Align
Your Objectives to our Procurement Solutions
Range of Potential Objectives
TCO
Outcomes
Other
Reduce Unit Cost
Improve Working
Capital
Improve Clinical
Efficacy
Improve Patient Safety
Sustainability
Flexibility/Responsiven
ess
Reduce Logistics Cost
Reduce Assets
Improve Revenue
Capture
Improve Patient
Satisfaction
New Business
Development
Intermountain Brand
Reduce Order
Management Cost
Mitigate Risk
Improve System
Performance
Reduce Supply
Variation by Procedure
Diversity
Market Share
Reduce Waste
Improve Supplier
Performance
Improve Labor
Productivity
Reduce Cost per DRG
The Range of Procurement Solutions is Broad
Procurement-Related Solutions
Contract
Management
Purchasing
Capital
Planning
Contract
Review
Services
Procure-2-Pay
Management
Supplier
Performance
Management
Alliance
Development
Office Solutions
Supplier Access
Sourcing
Renegotiation
Contract
Repository &
Event Reporting
Spot Buys /
Opportunity
Buys
New Product
Introduction
Value Analysis
Travel
Management
Credit Card
Make/Buy
Assessment
Price
Benchmarking
Contract
Amendments
EDI
Management
Joint Cost
Reduction
Co-Product
Development
Fleet
Management
Reprocessing
Management
Direct Importing
Environmentally
Preferred
Products
Contract
Terminations
Price
Management
Contract
Compliance
Management
Research and
Trial Support
Waste
Management
Custom Pack
Management
Dispute
Resolution
Insource/
Outsource
Assessment
BAA/DSA/NDAs
Item
Adds/Changes/
Deletes
Supply
Utilization
Management
Benefits
Tracking
Energy
Management
Printed Output
Management
Product
Standardization
Supply Base
Management
Change in
Ownership
Contract
Terminations
Charge Capture
Optimization
Supplier Risk
Assessment
Program
Management
Services
Sourcing
Strategic
Sourcing
Solutions Mgrs REPRESENT these solutions
(provided by others in Procurement)
Post-Contract Value Adds
Supply Program Management
Solutions Mgrs DIRECTLY PROVIDES these
solutions
Procurement is One of MANY Solutions we Offer in the SCO
Solutions Manager Assignments
We Needed to Solve for Three Dimensions
Line of Business
(Solutions Mgr)
Hospitals
Select Health
Home Care
Med Group
Hospitals
Select Health
Home Care
Med Group
Marketing
Marketing
Marketing
Marketing
Hospitals
Select Health
Home Care
Med Group
Stakeholders
(Solutions Mgr)
Hospitals
Select Health
Home Care
Med Group
Marketing
Marketing
Marketing
Marketing
Hospitals
Select Health
Home Care
Med Group
Marketing
Marketing
Marketing
Marketing
Hospitals
Select Health
Home Care
Med Group
Support Services
Support Services
Support Services
Support Services
Hospitals
Select Health
Home Care
Med Group
Marketing
Marketing
Marketing
Marketing
Hospitals
Select Health
Home Care
Med Group
Marketing
Marketing
Marketing
Marketing
Clinical Services
Clinical Services
Hospitals
Marketing
Clinical Programs
Clinical Services
Select Health
Marketing
Clinical Programs
Clinical Services
Home Care
Marketing
Clinical Programs
Med Group
Marketing
Clinical Programs
We Have Two Types of Stakeholders
Decision Makers and Those Impacted/Influenced by Decisions Makers
Business Owners
Support
Clinical Programs
Hospital Regions
Select Health
Medical Group
Lines of
Business
Integration
Home Care
Legal
Compliance
Risk
Central Office
Integration
Education
Patient Safety
CNO
CMO
Shared Accountability
Healthcare Delivery
Clinical
Integration
Clinical Services
Support Services