AHRMM: C-suite execs confirm supply chain impacts hospital performance
BOSTON—Hospital leaders agree that supply chain management impacts operational performance and clinical performance, according to survey results presented Aug. 8 at the 2011 Association for Healthcare Resource & Materials Management (AHRMM) annual conference, and now is the time for supply chain leaders to act, noted presenter Jamie C. Kowalski, CEO of the Jamie C. Kowalski consulting firm.
There was broad agreement among CEOs, COOs and supply chain leaders that supply chain management can influence operational performance—garnering a 3.8 rank out of 5—according to a survey of 285 hospital officials conducted by AHRMM, Marquette University Center for Supply Chain Management and Kowalski. Survey respondents indicated that supply chain management can impact hospital performance, productivity and efficiency, and results were similar regarding clinical performance—which garnered a score of 3.6 out of 5. Survey results indicated quality supply chain management can improve clinical success, patient care and safety.
The next question answered by respondents was surprising for Kowalski, he said. The average rank for the overall importance of supply chain management earned an average score of 3.7 out of 5. “If supply chain is so important to clinical and operational performance, I don’t know why this isn’t a five,” he said.
The survey was conducted in an effort to understand the thinking of C-suite leaders with regard to the supply chain, Kowalski said. In answer to why survey respondents indicated an average score of 3.7 for the importance of supply chain, one audience member suggested it could be a result of a perception that other departments were more important. “Human resources could outrank supply chain,” the audience member noted. “There’s a large group of people who think we just move boxes.”
“Absolutely, we have an identity crisis,” Kowalski agreed.
When asked if they were satisfied with the overall performance of their supply chain, 65 percent of survey respondents indicated they either agreed or strongly agreed. “The good news is, we’re seeing improvement,” Kowalski said. According to the survey, 88 percent of respondents agreed supply chain performance improved in the last two years.
Among some of the things to take away from the survey, Kowalski suggested striving for faster improvement in the supply chain and stressing the importance to members of the hospital C-suite.
“If there was a time when we really wanted to accomplish things in supply chain, it’s now,” Kowalski said. “We’re making improvement, but it’s too incremental.”
Kowalski noted disconnect between members of the C-suite and supply chain leaders. “The C-suite execs are still not getting it and they don’t even know it,” Kowalski said. “They need education. They need convincing…As an industry, now is the time.”
There was broad agreement among CEOs, COOs and supply chain leaders that supply chain management can influence operational performance—garnering a 3.8 rank out of 5—according to a survey of 285 hospital officials conducted by AHRMM, Marquette University Center for Supply Chain Management and Kowalski. Survey respondents indicated that supply chain management can impact hospital performance, productivity and efficiency, and results were similar regarding clinical performance—which garnered a score of 3.6 out of 5. Survey results indicated quality supply chain management can improve clinical success, patient care and safety.
The next question answered by respondents was surprising for Kowalski, he said. The average rank for the overall importance of supply chain management earned an average score of 3.7 out of 5. “If supply chain is so important to clinical and operational performance, I don’t know why this isn’t a five,” he said.
The survey was conducted in an effort to understand the thinking of C-suite leaders with regard to the supply chain, Kowalski said. In answer to why survey respondents indicated an average score of 3.7 for the importance of supply chain, one audience member suggested it could be a result of a perception that other departments were more important. “Human resources could outrank supply chain,” the audience member noted. “There’s a large group of people who think we just move boxes.”
“Absolutely, we have an identity crisis,” Kowalski agreed.
When asked if they were satisfied with the overall performance of their supply chain, 65 percent of survey respondents indicated they either agreed or strongly agreed. “The good news is, we’re seeing improvement,” Kowalski said. According to the survey, 88 percent of respondents agreed supply chain performance improved in the last two years.
Among some of the things to take away from the survey, Kowalski suggested striving for faster improvement in the supply chain and stressing the importance to members of the hospital C-suite.
“If there was a time when we really wanted to accomplish things in supply chain, it’s now,” Kowalski said. “We’re making improvement, but it’s too incremental.”
Kowalski noted disconnect between members of the C-suite and supply chain leaders. “The C-suite execs are still not getting it and they don’t even know it,” Kowalski said. “They need education. They need convincing…As an industry, now is the time.”