Supply Chain World - Volume 7, Issue 3 - 71

northside hospital healthcare

	 From	a	contracting	perspective,	Gwinnett	utilized	both	
a	national	and	regional	group	purchasing	organization	to	
administer	contracts	for	the	bulk	of	commodity	"medsurg"	products	while	physician	preference	items	were	
negotiated	locally.	
	 Northside's	contract	management	function	was	completely	centralized	and	encompassed	not	only	clinical	
goods,	but	also	the	majority	of	services	such	as	linens,	food	
services,	biomedical	engineering,	utilities	and	telecom.	

Centralized Model
Although	Northside	used	the	same	national	group	purchasing	organization,	roughly	70	percent	of	its	contracts	
are	locally	negotiated.	After	careful	review,	a	decision	was	
made	to	use	a	fully	centralized	model.	That	increased	involvement	in	local	contracting	as	well	as	expanding	supply	
chain's	reach	across	the	merged	organization	into	service	
areas	and	acquisition	of	capital.	
	 Concurrent	with	the	adoption	of	a	more	centralized	and	
expanded	function,	a	plan	to	standardize	products	through	
the	use	of	pre-approved	requisition	templates	began	on	the	
first	day	of	the	merger.	
	 "The	effort	is	expected	to	take	six	to	nine	months	and	
includes	the	transition	to	a	cloud-based	requisitioning	system	that	utilizes	standard	product	templates	for	ordering,"	
Waller	says.	
	 From	a	distribution	and	logistics	standpoint,	Gwinnett	
utilized	a	quasi,	self-distribution	model	for	medical	supplies	whereby	goods	are	delivered	in	bulk	from	distributors	
or	directly	from	vendors	to	a	warehouse	and	then	broken	
down	for	delivery	to	storage	locations	at	each	facility.	
	 Conversely,	Northside	employed	a	low	unit	of	measure	
delivery	whereby	goods	are	pre-sorted	and	received	in	totes	
from	the	distributor	for	immediate	delivery	to	designated	
storage	locations	throughout	the	system	as	well	as	bulk	
delivery	at	some	locations.	
	 Based	on	an	analysis	of	distribution	cost	and	service	levels,	it	was	decided	that	the	merged	entity	would	transition	
to	a	distributor	enabled	combination	of	bulk	and	low	unit	of	
delivery	over	time.	

B. Braun Medical Inc., a leader in infusion therapy and pain management,

develops, manufactures, and markets innovative medical products and services to
the healthcare industry. Other key product areas include ostomy and wound care,
dialysis, nutrition, and pharmacy admixture. The company is committed to eliminating preventable treatment errors and enhancing patient, clinician and environmental
safety. B. Braun Medical is headquartered in Bethlehem, Pa., and is part of the B. Braun
Group of Companies in the U.S.

VOLUME 7, ISSUE 3 Supply Chain World

71



https://www.bbraunusa.com/en/company/solutions-for-life.html

Supply Chain World - Volume 7, Issue 3

Table of Contents for the Digital Edition of Supply Chain World - Volume 7, Issue 3

Contents
Supply Chain World - Volume 7, Issue 3 - Cover1
Supply Chain World - Volume 7, Issue 3 - Cover2
Supply Chain World - Volume 7, Issue 3 - 1
Supply Chain World - Volume 7, Issue 3 - Contents
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Supply Chain World - Volume 7, Issue 3 - Cover3
Supply Chain World - Volume 7, Issue 3 - Cover4
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