DHL Healthcare, experience within Hospital Logistics. Jonathan Blamey PhD MBA
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1 DHL Healthcare, experience within Hospital Logistics Jonathan Blamey PhD BA
2 Introduction Jonathan Blamey Professional Background: Joined DHL Exel in 2004, 15 years experience within the healthcare industry, covering medical devices, pharmaceutical services and home healthcare/pharmacy. Previous experience within regulatory affairs, project/trial management and aseptic manufacture. Qualifications: Ph.D. (Biomedical Engineering) & BA (aster Business Administration) Previous Roles: General anager, Clinical Trials, DHL Exel Supply Chain Regional anager, Clinovia (Pharmacy, Nursing & Logistics) Director, Quintiles Laboratory, Project Services & Logistics arketing anager, EEA Zimmer Orthopaedics R & D anager, EEA, Zimmer Orthopaedics Hobbies: Triathlon, Cycling, Running, Ski-ing Page 2
3 UK National Health Service (NHS) Structure Initially set-up in July 1948 Principles of healthcare being free at the point of use Responsibility for Dentistry & Opticians Current Budget 144bn, up from 67bn in 1997, 7% GDP Page 3
4 Patient Journey through Hospital & Efficiency (1) UK is aware of potential wastage within the NHS hospitals Active review of patient journey through the service to identify savings ove Diagnostics earlier Page 4
5 Patient Journey through Hospital & Efficiency (2) Efficiency on a procedure level is being investigated & addressed Implications on hospital design, department location & equipment installation Bed utilisation has been a key measure (in particular around discharge / pharmacy dispensing) Page 5
6 Need for Supply Chain anagement in the UK NHS Throughout the NHS, clinical need, actual demand & ability to supply are misaligned. This is true both from a clinical and a supply chain perspective. Opportunity to support the delivery of care where it is most needed whilst eliminating waste Demand Need Demand Supply Need Supply Page 6
7 Need, Demand & Supply Associated Risks in UK NHS 1: A clinical need / demand exists but is not fulfilled (e.g. mental health) Overall healthcare/welfare cost burden increases 2: Demand is being met when there is no clear clinical requirement Unnecessary cost is incurred which can be better spent elsewhere 3: Clinical need is being catered for on an unplanned/ad hoc basis Cost associated with poor management and risk of non-supply 4: Alignment of clinical need, demand and supply This is the goal, but to what extent is it achieved? Need 1 Demand 3 4 Need Demand Supply 2 Supply Page 7
8 Healthcare Customer Sub-sectors Start Pt. LIFE SCIENCES & HEALTHCARE PRODUCT CUSTOERS SERVICE CUSTOERS PHARACEUTICALS EDICAL DEVICES HEALTH SERVICES Page 8 ANIAL HEALTH GP/DOCTORS DENTISTTRY ETHICAL BIOTECH GENERICS OTC OTHER DIAGNOSTICS CONSUABLES CAPITAL EQUIP IPLANTS OTHER STATE HOSPITALS PATIENT GROUPS HEALTH SERV. RETAIL PHARACIES HOE SERVICES CARE HOES PRIVATE HOSPITALS NURSING SERVICES CHARITIES
9 Current Product Overview EEA Healthcare Consulting, Transport anagement Services, LLP Inbound Logistics anufacturing Distribution Logistics After Sales/Service Logistics Reverse Logistics Inbound to anufacturing Assembly (Co-packing) Assembly (Re-packing) Kitting (Operation Kit) Assemble to Order (Postponement) Warehousing Dedicated Shared User Order to Cash Clinical Trials Logistics NHS Supply Chain Hospital Logistics Consolidation Centres Strategic Stock an. Promotional Logistics Patient Transport Service Parts Logistics Repair anagement & Testing Product Returns & Destruction Temperature onitor anagement Packaging Returns Forwarding & Transportation: Express, Time Critical, Air, Sea, Road (Chill & Ambient) Suppliers Source ake End Deliver users aintain Recycle Create value Throughout the Product Lifecycle Sustain value Recover value Page 9
10 DHL View on Developments within Hospital Supply Chain igration through supply chain models aim to get closer to the end user Applications include Pharmaceuticals, edical Devices (including implants) & Consumable items 1st Stage igration W W W CS CS 1 U U U U U U U U U U U U 2nd Stage igration W CS 2 U U U U U U U U U U U U Key anufacturer W Wholesaler H Hospital Typical 4 Optimum 3 CS Central Store U User H W W W H H H H Consolidation / Sequencing U U U U U U U U U U U U U U U U U U U U U U U U Page 10
11 3 tiered approach to hospital logistics Increasing Logistics Focus On On site site services services aterials aterials management management Off Off site site storage storage & consolidated consolidated deliveries deliveries Consolidated Consolidated purchasing purchasing Page 11
12 DHL Hospital Logistics Summary of Benefits Increase revenue/roi Space release Greater clinical staff productivity Reduce costs Reduce product costs Reduce distribution costs Reduced product wastage Lower inventories Consolidation of supply Better cost control Create Customer Value Purchasing efficiency Consumption data capture Provision of IS Lower inventories Reduce capital Reduce working capital Reduce fixed assets Better stock visibility Use of off-site facility Avoidance of expenditure on IS inimise risk Proven operating methodology Proven implementation approach Improved quality Greater patient focus ore responsive service Page 12
13 Summary of DHL experience in hospital logistics Goods received and checked. Packaging removal. Locations created, kept in order and replenished. Returns. Batch recall. Kitting (prep). Automation (ie pharmacy robot), RFID. Large change; privatisation of health services perception. Solution very visible to nurses, logistics tasks taken from daily tasks Space release. Less wasted inventory. Increased productivity. ore patient-care focused work for ward staff On On site site services services Visibility of inventory value & consumption levels, expiry date alerts and suggested ordering profile edium change in culture. Hospitals often keen to pilot project. Only difference for nurse is posting used bar code Full inventory visibility. Better inventory utilisation. Huge cost reduction opportunities. Space release. Less time spent by staff on logistics. Reduced waste. Increased patient safety aterials aterials management management Storage. Consolidated deliveries. QC. Receipt. Returns. Small change in culture. Little effect on nurses Space release. Bulk purchasing. Reduced deliveries at hospital. Reduced Carbon, Time savings Off Off site site storage storage & consolidated consolidated deliveries deliveries Page 13
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