HFHS Purchasing Supply Chain and Supplier Diversity

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1 HFHS Purchasing Supply Chain and Supplier Diversity

2 Pursuing Perfection One of Henry Ford s top priorities is to pursue perfection by transforming how we deliver care and dramatically improving patient outcomes as well as the care experience. Our ultimate goal is to create an environment that provides each patient, every time, care that is safe, effective, timely, patient-centered and equitable. -Nancy Schlichting, President & CEO, Henry Ford Health System

3 Who are we?? Henry Ford Health System is one of the nation s leading health care providers voted One of America s Best by U.S. News and World Report. Henry Ford Health System consists of five hospitals: Henry Ford, Henry Ford Wyandotte, Kingswood, Henry Ford Bi-County Hospital, and Henry Ford West Bloomfield Hospital, along with an extensive network of outpatient satellite clinics throughout southeastern Michigan. Affiliations with seven other area hospitals make us one of the largest healthcare systems in the country. HFHS employs 13,800 fulltime equivalent employees, including 3,000 nurses and 4,000 allied health professionals making it one of Michigan s largest employers.

4 Purchasing Goals Henry Ford is committed to keeping caregivers at the patient s bedside where they are needed most. The HFHS supply chain plays a key role in this by providing: The right product At the right price To the right place At the right time We are looking for supplier partnerships that can help us achieve these goals.

5 Purchasing Automation How We Do Business Implemented in May 2002, end-user online requisitioning processes greatly reduce turnaround time and promotes increased fill accuracy, moving HFHS to a fully automated, paperless procurement process. Specially developed electronic departmental shopping carts and the automated replenishment of all Central Supply areas free employees for patient care functions. Utilization of EDI capabilities enhance the overall potential of our purchasing process.

6 PO Lines for 2005 Per Month by Source 12,000 10,500 9,000 Coun 7,500 6,000 4,500 3,000 1,500 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Inventory 4,423 4,133 4,564 4,273 4,406 4,708 3,938 4,611 3,794 4,023 4,321 4,370 Manual 8,667 8,120 9,736 8,963 8,768 10,348 7,901 9,245 9,514 9,658 9,412 9,090 Web 9,028 9,044 10,173 9,259 9,703 10,224 8,429 9,929 10,630 9,559 9,480 8,613 Auto Web 2,140 2,013 2,363 2,066 2,032 1,951 1,634 1,909 2,077 1,768 1,971 1,796 CART 7,626 7,177 7,896 8,114 7,949 8,317 7,173 8,778 8,698 6,222 5,685 5,560 Month

7 Purchasing Strategy Henry Ford Health System is a member of Premier Purchasing Partners, a GPO providing us with access to national discount pricing on many of the goods and services that we purchase. To ensure consistency in all supplier partnership relationships with Henry Ford, Purchasing management have developed standardized business practices to simplify and streamline procurement processes.

8 Supply Chain Business Practices Clinical Supply Group Mary Stevens Group Manager Animals-Research Blood & Blood Products Consignment of Supplies Laboratory Supplies Medical/Surgical Supplies New Technology Radioactive Products Reagent Agreements Supplier Diversity within HFHS Capital Planning Group Jeff Vickers Group Manager Capital Equipment Equipment Rental & Leasing Facilities Projects Maintenance, Repair, and Operations Services Medical Equipment Maintenance Signage Supplier Diversity within HFHS Logistics & Distribution Group Ed Furca CSG Contract Manager Product Distribution Loading Dock Receiving Distribution Managers Courier Services Supplier Diversity within HFHS Non- Clinical Supplies & Facility Related Services Group Ellen Hasson - Group Manager Check Requests Dietary Supplies and Services Food Service & Supplies Forms and Print Management Janitorial & Sanitation Supplies Maintenance, Repair and Operations Supplies Laundry and Linen Management Office Supplies Promotional Material Subscriptions Temporary Personnel Staffing Textbooks Transcription Services Travel & Related Expenses Supplier Diversity within HFHS Purchases Services Group Greg Miner Group Manager Cellular Telephones, Service, and Accessories Computer Peripherals Copy Machines and Network Imaging Desktop & Laptop Computers Fax Machines Freight Mail/Postage Off-Site File and Document Storage & Retrieval Pagers & Pager Service Printers, Scanners Purchased Services Secured Document Shredding and Media Destruction Server & Infrastructure Computers Software Licenses Supplier Diversity within HFHS **Highlighted categories represent significant supplier opportunities.

9 Purchasing Organization Commodity Group Manager Commodity Specialist Customer Support Specialist Purchasing Associates Purchasing teams have been aligned around business practice commodity areas. Keeping the needs of individual business units in mind, they focus on building one-on-one relationships with suppliers, and developing in-depth knowledge of product lines to make the best possible choices for Henry Ford Health System.

10 Supplier Opportunities for 2006 Henry Ford Health System is continually looking for diversity partnerships within our supply chain system. It is our policy to support the establishment, growth and development of minority and women-owned businesses by entering into mutually beneficial business relationships. Opportunities for future growth include, but are not limited to the following areas: Facilities Maintenance, Repair, and Supplies. Transcription Services Food & Food Supplies Construction

11 Henry Ford Health System Henry Ford Health System is committed to the development of diverse suppliers, and often partners diverse suppliers with primary suppliers. This triangulation arrangement, under the direction of Henry Ford,allows the primary supplier to focus on it s core competencies, while mentoring,providing additional business to, and supporting the small business partner. Primary Supplier Diverse Supplier

12 Community Commitment Henry Ford Health System is a Michigan non-profit health care enterprise governed by community leaders, recording $2.8 billion in revenue while providing $127 million in uncompensated care to the community**. Supplier Diversity initiatives throughout the system allow us to strengthen our commitment to the City of Detroit and the surrounding communities. **Revenue and uncompensated care totals reflect 2004 data

13 What We Look For In a Supplier Diversity Partner The right supplier/partnership includes the following: Quality in goods and/or services. A willingness to partner with Henry Ford to attain best pricing goals for the system. Access to products at national discounts and pricing. (i.e. Premier) The ability to hit supply fill rates of 98% or better. EDI transaction capability. Current MMBDC certification.

14 How to Reach Us If you feel you have what it takes to partner with Henry Ford Health System, please contact Sylvia L. Daniels, Coordinator, Vendor Relations Purchasing Supply Chain at You will be put in contact with the right Purchasing Group Manager to explore business opportunities at Henry Ford.

15 Maybe your company can join us in our mission To serve our patients and our community. Putting Each Patient First