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AMBULATORY SURGERY CENTERS
Three strategies for demystifying the ASC supply chain puzzle
BY BRAD CLARK AND JEFF KREMER
E
nsuring safe, quality care requires
precise alignment among
inventory levels, delivery schedules,
storage solutions, and every other
element of the supply chain. A single
missing piece of this puzzle-say, a delayed
shipment or a storage issue-can
disrupt the entire picture.
Making the pieces fit can be difficult
for any healthcare provider. However,
certain challenges are likely to loom
larger for ambulatory surgery centers
(ASCs). With limited storage space, relatively
greater dependence on a regular
flow of supplies can leave ASCs more
vulnerable to natural disasters, pandemics,
and other socioeconomic and
geographical disruptions. Additionally,
ASCs often use different systems for
inventory management and purchasing.
Many still rely on manual processes for
tasks like ordering and receiving supplies.
These disconnected systems can
be time-consuming and hinder supply
chain visibility.
Strong relationships with distributors
and suppliers can help ASCs navigate
these challenges. Options such
as 5-day-per-week delivery and flexible
stocking requirements-as well as outside
expertise-can be significant assets
in implementing Lean storage principles.
However, conducting a thorough
risk assessment is essential to ensuring
the right fit. From there, a business
continuity plan is essential to mitigating
risks, improving preparedness, recovering
from disruptions, and ensuring
effective, ongoing collaboration. The following
offers more detail on each of
these three essential elements of ensuring
supply chain resiliency.
Establishing Lean storage
Projected to expand from $46.62 billion
in 2023 to $75.20 billion by 2030,
the ASC market presents significant
opportunity. However, surging patient
volumes and the provision of more services
can threaten to compound inefficiencies
for growing ASCs. Lean storage
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principles focus largely on eliminating
waste, with the goal of keeping inventory
levels low without compromising
the clinical needs of patients. Among
other initiatives, a successful framework
for Lean supply chain management
is likely to encompass rigorous
value analysis, efficient receiving and
storage procedures, and standardization
efforts to reduce product and process
variation.
Technology can help. For example,
major distributors offer ecommerce
systems that can help optimize supply
requisitioning, ordering, receiving,
invoice reconciliation, and more for no
additional fee. In addition to providing a
single outlet to order from multiple vendors
and build redundancy for critical
resources, some e-commerce platforms
can be tailored specifically for ASC supply
chains. Capabilities can include visibility
into purchasing and other financial
data, real-time case costing and
inventory updates with on-hand quantity
management, cycle counting, period inventory
valuation, and practice management
integration.
Assessing and managing risk
Careful review of potential suppliers
should account for not only required
products and equipment, delivery times,
and turnaround times, but also industry
regulations and safety standards. In addition
to conducting market research,
ASCs should reach out directly to potential
suppliers to learn about capabilities
and offerings, focusing particularly on
specific goals such as improving quality,
customer service, or sustainability.
Requests for proposal should clearly
outline requirements.
With the right suppliers identified,
specific needs should be outlined in a
contract. A thorough risk assessment
can help identify potential disruptions,
from regulatory changes to natural disasters.
Some suppliers may be more
critical to patient care than others. With
these suppliers, establishing protocols
for communicating beyond traditional
means can help ensure the ASC has
what it needs in the event of a problem
with the procurement system.
With distributors, formalizing partnerships
with a contract can help maximize
purchasing power and ensure that
the distributor is working collaboratively
with an ASC to reduce costs. Effective
communication with sales representatives
is also critical to ensure needs are
met. ASCs should ensure to be specific
about requirements (including clearly
defined objectives and measurable targets
for meeting those goals) and provide
feedback on how things are going.
Ensuring business continuity
Last but not least, ASCs should create
a business continuity plan. This is an
important step to help mitigate risks,
improve preparedness, recover from
potential disruptions, and facilitate collaboration.
Among other essential elements,
this plan should include contingency
plans for restoring critical functions,
backing up data, and identifying
alternate locations. It should include
established procedures for communicating
internally and with suppliers, as well
as multi-source procurement strategies
for products at risk of scarcity. Testing
and training, including simulations with
staff, can help identify weaknesses.
Supply chain challenges can significantly
impede growth. However, the
right strategies can help ASCs prepare
for inevitable disruption. ORM
-Brad Clark is
vice president
of strategic accounts
at Henry
Schein Medical.
Jeff Kremer is senior director of business
development for the ASC Division.
Reference
US Ambulatory Surgical Centers Market
Analysis. Fortune Business Insights.
December 2024.
OR Manager | ORBMC Show Issue 27
https://www.fortunebusinessinsights.com/u-s-ambulatory-surgical-centers-market-106323 http://www.ormanager.com
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