How Value Analysis Teams (VAT) can improve overall quality, reduce costs and positively impact patient experience by engaging in global sourcing.
Part Two – by Bethany Gleim, Director of Value Analysis, ASP GlobalHow Value Analysis Can Introduce Global Sourcing to your Organization.Understanding the what and why [What is global sourcing and how can it impact your value analysis team?] about global sourcing is key to introducing your team to the strategic value-based implementation of global sourcing. It is all about improving quality and the patient experience while reducing costs associated with thousands of your common hospital products.Once you have determined this is a value-based course of action, here’s what you can expect from your global sourcing partners in order to make it as easy as possible for you to introduce and help launch the program.Identifying and picking off the low hanging fruitStart slow by identifying 10-15 high volume medical products with the least amount of conflict. Stethoscopes, digital thermometers, personal protection apparel and patient belonging bags are a few of the most common, “low friction,” products many facilities use to launch and validate their global sourcing programs. These products regularly demonstrate savings of 20 – 30% annually and easy conversion from products currently on formulary.A good metric for defining “high volume” products are those with a minimum 10,000-unit annual purchase, though many large hospitals will find plenty of opportunities in products of which they buy 100,000 to 1 million or more annually.
Cross reference against your formulary for savings expectation
Your global sourcing partner, someone who knows what is required to successfully design, source and deliver products direct from factories across the globe, will complete a cross reference review of those identified items currently in use. The resulting cost analysis will detail the anticipated savings on products at or exceeding current levels of clinical acceptance. You should expect full visibility on pricing all the way from the factory to your shelves.
Building a team primed for success
Your global sourcing partner can assist you in identifying the key stakeholders, executive sponsors, VAT leaders, clinical representatives and supply chain representatives needed to implement and maximize the value of your global sourcing program.
Planning a successful kickoff meeting
Once your team has been established, your next steps would be to coordinate with your global sourcing partner a successful kickoff meeting. The agenda should include the savings results from the cross-reference analysis and product samples of the 10-15 identified commodity items used to validate the value of the program. Testimonials will be provided by your global sourcing partner from other hospitals currently taking advantage of the benefits global sourcing provides to their organizations.
What’s next?
Building strategy acceptance for global sourcing.
Learn More >
