Sustainability can be a deeply immersive topical area for any healthcare organization and department within it.
Supply Chain’s specific participation and role in sustainability initiatives, whether fully embedded within product decision-making or peripherally inserting sustainability language requirements in contract clauses, or marginally endorsing and practicing behavioral changes, differs by facility and leadership personality.
Most agree that distance and ignorance are unacceptable, particularly because Supply Chain functions as the product and service gatekeeper within an organization — or at least it should.
A joint survey of healthcare organizations conducted by Greenhealth Exchange (GX) and Healthcare Purchasing News (HPN) in late summer found that Supply Chain, by and large, should be involved in sustainability initiatives (98 percent affirmative response), with many responding that sustainability should be a consideration for Supply Chain with a larger number saying it should be critical to decision-making five years from now.
Curiously, while 98 percent at least recognized Supply Chain should be involved in sustainability initiatives, only 57 percent of survey respondents stated they set sustainability goals specific to work in supply chain operations. Sixty-four percent of survey respondents reported that progress on those goals are routinely reported out via meetings, newsletters, electronic dashboards and other forms of communication, according to the results.
Only 41 percent of survey respondents said that Supply Chain routinely factors sustainability components for products into the decision-making criteria, typically during the bid process, in product reviews and in requests for proposals (RFPs).
Unfortunately, progress in implementing sustainability improvements is not really a factor at all in Supply Chain performance measurement as cited by more than 58 percent of survey respondents. Meanwhile, 35 percent of respondents said that sustainability may not be specifically tied to performance but appears to be valued and factored in more generally. Only 10 percent stated it was part of their annual evaluation and less than 2 percent stated it was part of the measurement to qualify for a compensation bonus, according to the survey.
Mary Starr, Vice President, Member Care, Greenhealth Exchange can’t emphasize enough how important it is for Supply Chain to be ensconced in sustainability activities.
“Supply chain represents significant spend from their organizations,” Starr said. “A savvy supply chain professional would look for ways to ‘double down’ with some of that spend and identify opportunities that represent cost savings with community-based companies. Additionally, given the number of companies a supply chain professional works with, they can also facilitate connections where creative approaches can provide community benefit. As an example, depending on size, a healthcare facility’s business for a product that is prepacked, or custom packed, additional assembly space may be required to service that hospital. That could represent a community benefit opportunity as well.”
Supply Chain involvement in sustainability is critical at any organization, Starr insists. She likens it to Supply Chain’s involvement in the management of surgical supplies, clinical specialty supplies (such as cardiology, orthopedics, etc.) and purchased services contracts.
“Because most efforts include either products or services, and supply chain touches both, the work is only hampered without their inclusion,” she reasoned. “Some organizations have either a full-time supply chain sustainability position or a designated supply chain person that works on sustainability as well as other supply chain activities. If there is only one position dedicated to sustainability, that position should work for the CEO, COO or other organizational leader. That’s because their span of control includes all of the areas that could bae involved in this work beyond just those within supply chain’s purview, such as food, design and construction, environmental services, etc.(see Slide 5).
SLIDE 5
Have you implemented any of the following practices
in supply chain focused on sustainability?
“Supply chain has unique expertise that can significantly improve and hasten the work around sustainability at their organizations,” Starr added. “The recognition that it is important needs to be established.”
Unfortunately, the GX-HPN survey found that only 23 percent of respondents had a supply chain professional on their organization’s sustainability committee.
Sister Mary Ellen Leciejewski, OP, Vice President, Corporate Responsibility, Dignity Health, echoes Starr’s concern and passion.
“Keep in mind the ways our purchasing decisions connect us to our mission and core values of collaboration, dignity, excellence, justice and stewardship,” Leciejewski told HPN. “Focus on sustainable purchasing on the front end so that we do not need to focus on the impacts of those materials once they get into the environment, and people are exposed to them. Engage with key suppliers to explore opportunities for growth and innovation and newer, safer alternatives to chemicals that will benefit our patients and communities. Communicate to our vendors our commitment to the elimination of human trafficking by implementing a screening process and adding language to contracts that address the problem. Ensure that high-quality energy, water, food, chemical and waste data is collected, used and reported for decision making.”
Leciejewski invites healthcare organizations to benchmark Dignity Health against industry standards to uncover opportunities for more sustainable purchasing practices.
Jeffrey Stoner, Purchased Services Administrator, Dignity Health, agrees.
“At Dignity Health, relevant product lines have partnered with subject matter experts in the form of Clinical Councils for communications and strategy development as well as Clinical Analysis Teams to explore adoption of standardized physician preference items,” he said. “Through this platform corporate sourcing is able to directly engage with clinicians representing our facilities in order to gauge acceptance and support of new standards. This lets us develop open dialogue around the total value and mission-based benefits of new products in addition to clinical performance.”
Steven Bergstrom, Director, Office of Sustainability, Intermountain Healthcare Supply Chain Center, Midvale, UT, solidly supports Supply Chain’s holistic participation.
“I strongly believe Supply Chain should be involved in all discussions and analysis,” he insisted. “They can be the gatekeepers for products and services coming into the healthcare environment, and what happens as things exit our operations. They can carry our message to our suppliers and use our purchasing power to force needed change.”
Mary Crawford, Senior Director, Procurement and Supply Chain, Small Business Liaison Officer and Certified Supplier Diversity Professional at Duke University Health System, urges Supply Chain’s role to predate any products passing through the facility doors.
“Enforceable sustainability language should be included in the RFP and contracting process with vendors to ensure they are supporting health system goals,” she indicated. “Long-term ROI of green products and services should be measured more closely in lieu of simple price comparisons, and vendors should be willing to partner with health systems to implement products and programs in this area. For example, if Styrofoam is eliminated in a facility, the vendor could help promote this awareness and drive momentums such as this with both guests and staff members.”
At Mayo Clinic, Rochester, MN, Bruce Mairose, Vice Chair, Supply Chain Management — Category Management, outlines and itemizes Supply Chain’s approach.
“Supply Chain should be evaluating energy consumption of medical equipment, work closely with biomedical services to ensure that component batteries and life cycle maintenance are meeting expectations and reducing the waste stream,” he said. “There is a tremendous opportunity to work with and contract for eco-friendly products in food services, transportation infrastructure, and a multitude of recycling programs from products used in clinical areas to technology waste stream management. Supply Chain can also greatly influence the purchase of sustainable office supply products, common products that all employees purchase and use every day.”
Leading office supply retailer Staples practices sustainability as much as it preaches sustainability to its customers, according to Jake Swenson, Director of Sustainability.
“For Staples internally, supply chain refers to our logistics and delivery operations,” Swenson said. “And yes, this is an important part of our operational sustainability efforts to reduce emissions waste and associated costs to deliver products to our customers. But supply chain is also often referred to as the procurement of goods and services to run your organization or business. If that is the meaning, then for us we absolutely recognize that one of the ways we can reduce our impacts and help our customers do the same is through sourcing and selling more sustainable products to our customers.
“Since we don’t manufacture [products], we work to partner with suppliers and brands to offer more sustainable products that meet our customers’ quality and value expectations,” he continued. “Today about 30 percent of the products we sell have environmental features. Our Supplier Code of Conduct lays out our expectations for our own brand suppliers with respect to social, health and environmental issues as does our Paper Procurement Policy.”
Green Team needed?
Staffing a dedicated “Green Team” or sustainability committee shouldn’t diminish efforts and vision around sustainability goals and objectives, leading to procrastination, according to GX’s Starr.
The GX-HPN survey found that 50 percent of survey respondents reported having a dedicated sustainability group in place.
“Work can get done with or without a team/committee, but these types of projects span multiple areas and levels within an organization, and the usual approach in healthcare in these scenarios is to use a team/committee structure,” Starr admitted. “Whether a team/committee exists, critical to success is established goals that are set, or endorsed by leadership, and communicated regularly as part of the organization’s priorities. The team/committee is merely a mechanism to organize the work. If Supply Chain isn’t at the table when these discussions are taking place and work is underway, then they need to proactively seek involvement.
“Someone, whether it’s a team or individual, has to champion sustainability efforts in order for real progress to be made,” Starr insisted. “As everyone knows, healthcare resources are stretched thin, and new demands are presented almost every day. Without a group or individual consistently focusing on sustainability, something else will expand into that time/space — especially when leadership is clearly conveying that this is an important goal.”
A sustainability committee or champion keeps opportunities and goals in the forefront, according to Starr, including developing a plan, identifying priorities, eliminating roadblocks and tracking and communicating progress.
“For healthcare professionals, every day brings a new priority, and without a champion or committee or clear direction from leadership that is continually bringing sustainability to the forefront, the efforts can easily be put aside,” she added. “Because sustainability is often viewed as a nicety instead of a necessity, it isn’t always given the same level of attention that other initiatives may get.”
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