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Supply Chain Management
  “A Customer’s View”
The Johns Hopkins Health System
Presentation Outline
1. Hopkins At-A-Glance
  a) Vital Stats
  b) Hopkins of The Future
2. Operational Goals
3. Supply Chain at Hopkins
  a) Achieving “best in class” status
  b) Performance metrics
4. Partnerships That Work
5. Supply Chain Challenges and Opportunities
Hopkins At-A-Glance
• Johns Hopkins Health System
   – The Johns Hopkins Hospital
      • Acute Care – 921
      • Neonatal ICU – 36
      • Comprehensive Rehab – 14
   – Johns Hopkins Bayview Medical Center
      • Acute Care – 318
      • Neonatal ICU – 25
      • Non-Acute Care – 369
   – Howard County General Hospital
      • Acute Care – 200
      • Neonatal ICU – 18
   – Johns Hopkins Community Physicians
   – Johns Hopkins Home Care Group
Hopkins At-A-Glance
   Here’s What We Do     Yearly Activity
Discharges                          82,523
Patient Days                       414,144
Pieces of Mail                  12,000,000
Pounds of Trash                 12,000,000
Miles of Cart Movement             146,000
Meals Served                     3,200,000
Pounds of Linen                 4,400,000
Cleanable Square Feet           3,000,000
Supporting Our Future
Hopkins 2011
Vice President General Services (JHH)
      Vice President Supply Chain Management (JHHS)

                                                                 Vice President

                                                    Executive                     Manager
                                                    Assistant                     Finance

                                                    Asst Dir
                                                   After Hours

                Sr. Director             Director                  Director                      Director          Administrator
                Supply Chain           Nutrition Svcs         Environmental Svcs              Special Services   Community Health

 Dir JHH MM                Mgr Pat Svcs                 Mgr Waste                  Mgr Mail

                                                                                  Mgr Patient
Dir JHBMC MM              Mgr Retail Svcs           Mgr Salvage
                                                                                   Transport

   Dir MDC                 Mgr Catering                                       Reprographics

Dir Corp Purch/                                                                    Mgr Call
 Shared Svcs                                                                        Center

 Asst Dir Inv
   Control

Products Nurse
Operational Goals
1. Have “our service equal our science”
2. Achieve “best in class” status in the
   healthcare field
3. Fix what’s broken NOW
Supply Chain At Hopkins
Achieving “best in class” Status
• Consolidation of Procurement Process

  $415,943,113                  $270,355,757
     JHHS                           JHU




                 $686,298,871
                  Combined
Supply Chain At Hopkins
Achieving “best in class” Status
• State of the art Receiving Facility
  – Complete separation of clean and soiled
    activity
  – Capacity to handle all incoming material
  – Re-routing of all truck traffic away from the
    main buildings
Supply Chain At Hopkins
Achieving “best in class” Status
• Facilities Redesign
  – We went from this……..
Supply Chain At Hopkins
Achieving “best in class” Status
• Facilities Redesign
  – To this
Supply Chain At Hopkins
Achieving “best in class” Status
• Distribution Challenges
  – Receiving center ¼ mile for main building
  – 2,000 carts or over 400 miles of distance daily
  – Variations in process
     • Timing
     • Functions
        – Supplies, Linen, Food, Trash
• Distribution Technology
  – AGV’s
  – Tugs
  – Towline
Supply Chain At Hopkins
Achieving “best in class” Status
Supply Chain At Hopkins
Achieving “best in class” Status
 • Towline Working as Designed
Supply Chain At Hopkins
Achieving “best in class” Status
• Open vs. Closed Unit Supply Distribution
  – Open wired shelving
  – Closed “biometric” cabinets
Supply Chain At Hopkins
Achieving “best in class” Status
• Offsite Distribution
  – 50,000 square foot facility
  – 5 miles from main campus
  – Management
     • In-House
     • Outsourcing
Supply Chain At Hopkins
Achieving “best in class” Status
• Supply Chain Metrics
Johns Hopkins MDC
                                      Johns Hopkins MDC
                                                                                                                                                                                                             Valuated Stock
                                        Inventory Values
                                                                                                                                                                1,800,000
$4,000,000
                                                                                                                                                                1,600,000
$3,500,000
                                                                                                                                                                1,400,000
$3,000,000
                                                                                                                                                                1,200,000
$2,500,000
                                                                                                                                                                1,000,000
$2,000,000
                                                                                                                                                                  800,000
$1,500,000
                                                                                                                                                                  600,000
$1,000,000
                                                                                                                                                                  400,000
  $500,000                                                                                                                                                        200,000
        $0                                                                                                                                                              0
                         Year 2007                                                                           Year 2008
                                                                                                                                                                               Year 2007                                                                              Year 2008




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                                                                                                                                                                                                          Johns Hopkins MDC
                                      Johns Hopkins MDC
                                                                                                            Issue                  Receipts                            Target: 18 Turns                    IssuesTurn Rates
                                       Issues Vs. Receipts
$7,000,000                                                                                                                                                     35.00                                                                     32.46
$6,000,000                                                                                                                                                     30.00
                                                                                                                                                                                                                                                                            22.26
                                                                                                                                                               25.00
$5,000,000                                                                                                                                                              19.11              17.99                      18.45                                18.26
                                                                                                                                                               20.00
$4,000,000                                                                                                                                                                                                                             17.68
                                                                                                                                                               15.00                                                                               17.11
                                                                                                                                                                                                         19.10
$3,000,000
                                                                                                                                                               10.00           16.03
$2,000,000
                                                                                                                                                                5.00
$1,000,000                                                                                                                                                      0.00
                                                                                                                                                                          Year 2007                                                                                  Year 2008
        $0




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                                                                                                                                                                                                          Johns Hopkins MDC
                                                                                                                             712 Pos itive
                                       Johns Hopkins MDC
                                                                                                                             711 Negative                                                                  % of Items Adjusted
                                      Inventory Adjustments
$1,500,000                                                                                                                                                     140%
                                                                                                                                                               120%
$1,000,000                                                                                                                                                     100%
                                                                                                                                                                80%
  $500,000                                                                                                                                                      60%
                                                                                                                                                                40%
                                                                                                                                                                20%
        $0
                                                                                                                                         November
                                                                             June
               January




                                                                                           July
                                      March




                                                                                                                                                                 0%
                                                                                                                 September

                                                                                                                               October




                                                                                                                                                    December
                          February




                                                                    May
                                                      April




                                                                                                   August




                                                                                                                                                                         Year 2007                                                                                   Year 2008
 -$500,000




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                   Year 2007                                                                          Year 2008


                                                                                                                                                                                                                  Johns Hopkins MDC
                                Johns Hopkins MDC
                                                                                                                                                                                                                  Excess Inventory +/-
                                                                                                                                                                 $2,000,000
                             Open Purchase Orders (PO's)
 100
                                                                                                                                                                 $1,500,000
                                                                                           92
  80
                                                                                                            61
                                                                                                                                                                 $1,000,000
                                                                                                                             49
  60
                                                                                                                                                                  $500,000
  40
                                                                                    20
                                                                      17
        10
  20                                                      5                                                                                                               $0
                                         4
                             2
               0




                                                                                                                                                                                                                                                            August
                                                                                                                                                                                                                                                    July
                                                                                                                                                                                                                                  May

                                                                                                                                                                                                                                           June
                                                                                                                                                                                                              March

                                                                                                                                                                                                                        April




                                                                                                                                                                                                                                                                                   October
                                                                                                                                                                                 January

                                                                                                                                                                                           February




                                                                                                                                                                                                                                                                                             November
                                                                                                                                                                                                                                                                       September




                                                                                                                                                                                                                                                                                                        December
    0
                                                                                                                                                                  -$500,000
        Year 2007                                                                                           Year 2008
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                                                                                                                                                                                 Year 2007                                                                           Year 2008
                                                                          S
Partnerships That Work
• On-site procurement support
  – Stock/Non-Stock Contracting
• Commodity/Functional Unit support
  – Product de-casing
  – Off hours deliveries
• On-site area management
  – Warehouse management
  – Low unit of measure distribution
Supply Chain Challenges and
         Opportunities
• Safety
• Standardization
  – Value Analysis Process
• Supporting underutilized businesses
• Staffing and Training
  – Replenishing the pipeline

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Owens_MinorLunchKeynote

  • 1. Supply Chain Management “A Customer’s View” The Johns Hopkins Health System
  • 2. Presentation Outline 1. Hopkins At-A-Glance a) Vital Stats b) Hopkins of The Future 2. Operational Goals 3. Supply Chain at Hopkins a) Achieving “best in class” status b) Performance metrics 4. Partnerships That Work 5. Supply Chain Challenges and Opportunities
  • 3. Hopkins At-A-Glance • Johns Hopkins Health System – The Johns Hopkins Hospital • Acute Care – 921 • Neonatal ICU – 36 • Comprehensive Rehab – 14 – Johns Hopkins Bayview Medical Center • Acute Care – 318 • Neonatal ICU – 25 • Non-Acute Care – 369 – Howard County General Hospital • Acute Care – 200 • Neonatal ICU – 18 – Johns Hopkins Community Physicians – Johns Hopkins Home Care Group
  • 4. Hopkins At-A-Glance Here’s What We Do Yearly Activity Discharges 82,523 Patient Days 414,144 Pieces of Mail 12,000,000 Pounds of Trash 12,000,000 Miles of Cart Movement 146,000 Meals Served 3,200,000 Pounds of Linen 4,400,000 Cleanable Square Feet 3,000,000
  • 7. Vice President General Services (JHH) Vice President Supply Chain Management (JHHS) Vice President Executive Manager Assistant Finance Asst Dir After Hours Sr. Director Director Director Director Administrator Supply Chain Nutrition Svcs Environmental Svcs Special Services Community Health Dir JHH MM Mgr Pat Svcs Mgr Waste Mgr Mail Mgr Patient Dir JHBMC MM Mgr Retail Svcs Mgr Salvage Transport Dir MDC Mgr Catering Reprographics Dir Corp Purch/ Mgr Call Shared Svcs Center Asst Dir Inv Control Products Nurse
  • 8. Operational Goals 1. Have “our service equal our science” 2. Achieve “best in class” status in the healthcare field 3. Fix what’s broken NOW
  • 9. Supply Chain At Hopkins Achieving “best in class” Status • Consolidation of Procurement Process $415,943,113 $270,355,757 JHHS JHU $686,298,871 Combined
  • 10. Supply Chain At Hopkins Achieving “best in class” Status • State of the art Receiving Facility – Complete separation of clean and soiled activity – Capacity to handle all incoming material – Re-routing of all truck traffic away from the main buildings
  • 11. Supply Chain At Hopkins Achieving “best in class” Status • Facilities Redesign – We went from this……..
  • 12. Supply Chain At Hopkins Achieving “best in class” Status • Facilities Redesign – To this
  • 13. Supply Chain At Hopkins Achieving “best in class” Status • Distribution Challenges – Receiving center ¼ mile for main building – 2,000 carts or over 400 miles of distance daily – Variations in process • Timing • Functions – Supplies, Linen, Food, Trash • Distribution Technology – AGV’s – Tugs – Towline
  • 14. Supply Chain At Hopkins Achieving “best in class” Status
  • 15. Supply Chain At Hopkins Achieving “best in class” Status • Towline Working as Designed
  • 16. Supply Chain At Hopkins Achieving “best in class” Status • Open vs. Closed Unit Supply Distribution – Open wired shelving – Closed “biometric” cabinets
  • 17. Supply Chain At Hopkins Achieving “best in class” Status • Offsite Distribution – 50,000 square foot facility – 5 miles from main campus – Management • In-House • Outsourcing
  • 18. Supply Chain At Hopkins Achieving “best in class” Status • Supply Chain Metrics
  • 19. Johns Hopkins MDC Johns Hopkins MDC Valuated Stock Inventory Values 1,800,000 $4,000,000 1,600,000 $3,500,000 1,400,000 $3,000,000 1,200,000 $2,500,000 1,000,000 $2,000,000 800,000 $1,500,000 600,000 $1,000,000 400,000 $500,000 200,000 $0 0 Year 2007 Year 2008 Year 2007 Year 2008 r ary r ary ne er ly rch er st be y ril be r ry Ma r Fe ry r ch ne be Ju er ly ep ust Ap mb il gu tob ay be be Ju vem pr bru ua cem nu a Ju Ma ob Ju ar em M m em nu ug A Au pte br Oc M Ja ct te Ja Fe ov A ec O No De Se N D S Johns Hopkins MDC Johns Hopkins MDC Issue Receipts Target: 18 Turns IssuesTurn Rates Issues Vs. Receipts $7,000,000 35.00 32.46 $6,000,000 30.00 22.26 25.00 $5,000,000 19.11 17.99 18.45 18.26 20.00 $4,000,000 17.68 15.00 17.11 19.10 $3,000,000 10.00 16.03 $2,000,000 5.00 $1,000,000 0.00 Year 2007 Year 2008 $0 r ry r y r ch ne be er ly t il ay be be Year 2007 Year 2008 us ar pr ua Ju ob ar Ju em ry ay r y ch ov er M ep ust r r m ly nu em il ne ug A be be be pr ar br ua M Ju ct ob M te ar Ju Ja ug ov A A m nu em em ec Fe O br ep M ct te A Ja N D Fe O ec S N D S Johns Hopkins MDC 712 Pos itive Johns Hopkins MDC 711 Negative % of Items Adjusted Inventory Adjustments $1,500,000 140% 120% $1,000,000 100% 80% $500,000 60% 40% 20% $0 November June January July March 0% September October December February May April August Year 2007 Year 2008 -$500,000 r ary r ary ne er ly rch er st y ril be be Ma Ju mb Ap gu tob Ju vem bru cem nu Ma Au pte -$1,000,000 Oc Ja Fe No De Se Year 2007 Year 2008 Johns Hopkins MDC Johns Hopkins MDC Excess Inventory +/- $2,000,000 Open Purchase Orders (PO's) 100 $1,500,000 92 80 61 $1,000,000 49 60 $500,000 40 20 17 10 20 5 $0 4 2 0 August July May June March April October January February November September December 0 -$500,000 Year 2007 Year 2008 r ry r y r ch ne be er ly t il ay be be us ar pr ua Ju ob ar em Ju M m em nu ug A br M ct te Ja ov A ec Fe O ep N D Year 2007 Year 2008 S
  • 20. Partnerships That Work • On-site procurement support – Stock/Non-Stock Contracting • Commodity/Functional Unit support – Product de-casing – Off hours deliveries • On-site area management – Warehouse management – Low unit of measure distribution
  • 21. Supply Chain Challenges and Opportunities • Safety • Standardization – Value Analysis Process • Supporting underutilized businesses • Staffing and Training – Replenishing the pipeline