Summary: | 碩士 === 東吳大學 === 企業管理學系 === 98 === Because of the implementation of the national healthcare insurance policy, medical institutions’ cash flow become compressing. These medical institutions who are facing great pressure in operation, must control their costs very cautiously. In the past, the most effective way to control costs is to compress the supplier’s profit margins; however, current industry environment is more emphasis on partnership. The market situation has changed from a company-to-company competing with each other to a supply chain – to – supply chain competing against each other. Therefore, medical institutions and their suppliers should enhance the overall supply chain performance by collaboration, and create win-win situation.
Previous literatures on inventory cost control of Parma products and medical devices in the healthcare industry focused on outsourcing and prediction of quantitative methods. Very few studies were found to discussion about reducing costs by amending the whole supply chain processes or revising ordering policy. Thus, this study examines the relationship and each logistic process between hospital and its’ upstream supplier, and investigate how to reduce the costs of Parma products and medical devices in healthcare supply chain by logistics process innovation and lean principles.
Case study was used as the major research method. A regional level Hospital C and the largest pharmaceutical logistics company Z are selected as the cases for this study. First, in order to inspect supply chain processes of this case, we used expert interviews and on-site observations to comprehensively conduct this research. Second, we used value stream mapping, supplier relationship management and customer relationship management questionnaire and lean principles to analysis the healthcare supply chain’s status. Then, we discussed the opportunities of improving these defects and proposed some recommendations for future development. Moreover, this research analyzed the feasible collaboration model between two parties, the benefit of logistics process innovation method and the key success factors needed under this innovation model.
The research results are summarized as below:
1.There are many waste in supply chain process:
After conducting expert interviews and on-site observations, we found there are some process defects in Company Z:updated product codes are not recorded, the operating repetition and poor shelf arrangement, department systems are not integrated, the number of distribution failing to inform in advance;there are also some defects in Hospital C:material requests are often handled by inefficient manual method, ordering time are decentralized, failing to inform out of stack in advance, lack of inventory visibility of user units. Finally we found that the problem in this healthcare supply chain is two parties’ information system is independent and existing logistic model is still the push-based supply chain.
2.There are processes gaps between Hospital C and logistics Company Z:
In analysis of supply and customer relationship management questionnaire show that between Hospital C and logistics Company Z exist processes gaps and cognitive differences, that is, both parties are in shortage of the relationship management specialization. Based on the these results, we can generalize four reasons to explain why these supply chain operations cannot bring significant value-added-existing supply chain is push-based, performance information is not shared with each other, and invest relations management operations tend to increase the costs, and sectors of inter-organization have inconsistent objective.
3.Cross docking operations can promote the performance of the entire supply chain:
As an innovation logistics model, cross docking operations could improve supply chain operational efficiency, cut waste and unnecessary processes cost, and drive healthcare supply chain become a pull-based supply chain. There are benefits below:
(1)Hospital C
We found that developing a cross docking based supply chain operations can reduce space resources and the inventory level to the minimum level for emergency needs. Inventory holding costs can be decreased from NTD920,372 to NTD230,093, orderline picking and e-order processing time can be saved 3.7 minutes per order. Finally, purchasing staff just needs to compile all orders once, thus order processing time is saved 2.5 minutes per order.
(2)Company Z
We found that developing a cross docking based supply chain operations can reduce the frequency of delivery, and also save time of hospital logistics implemented in warehouse. In addition, since the actual need and usage status of Hospital C’s units are accessible to Company Z, Company Z will become C Hospital's partner instead of one of hospital’s suppliers. This will change the fact that Company Z is under disadvantageous status with both suppliers and hospitals.
4.Some elements within the organization are key factors to achieve successful collaboration:
This research further analyzed what requirements would be needed if Hospital C and Company Z decided to collaborate on implementation successful innovative logistics model. Combining findings from literatures and observations during the research period, we found that for both parties to collaborate successfully, they should follow at least the following six key factors:
(1)The establishment of partnership:Both parties should consult a win-win mode and sharing common resources to save overall healthcare supply chain costs;
(2)The communication within supply chain members:Both parties should construct a common goal and performance objectives via sharing information;
(3)The connection with Information Systems: Both parties should provide good interface to connect their information systems to provide inventory status visibility to overcome the information gaps resulting from process defects;
(4)The support of manager: if top management do not give full support, implementation of innovative model will become an activity as navel-gazing;
(5)The establishment of project team: learning through inter-organizational collaboration and regular assessment of performance to improve the inappropriate process;
(6)Organizational Learning: training staff to accept the new inventory policy and adapt to new working condition.
In current, healthcare supply chain logistics innovation is still at initial stage. If we can actually adopt suggestion of this research, and develope lean process and combine cross docking with critical collaboration success factors, we will enable to promote the overall effectiveness of healthcare supply chain significantly.
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