Mobile Technology Delivers Next Gen Supply Chain in Healthcare

Mobile Technology – An Essential Component

of the Next Generation Healthcare Supply Chain

From Jump Technologies’ White Paper

Published April 2015

1 Confidential. Copyright 2015 Jump Technologies. All rights reserved.

Executive Summary

• Economic pressures, reform and evolving business structures drive hospitals

toward more efficient, coordinated processes

• Supply chain – second largest and fastest growing expense in healthcare – is a

substantial area of focus for reform

• As provider organization structures evolve, they need to track complex

movements throughout diverse systems

• Despite widespread use, ERP systems often fail to meet needs

• Cloud and mobile technologies are driving the next gen healthcare supply chain

• Paired with ERP systems, organizations get the scalability, visibility and flexibility needed

to execute new business processes

• Hospitals must capture information wherever care is delivered

• Meaningful data becomes the cornerstone of solid business decisions

• Data security is a critical deliverable

2 Confidential. Copyright 2015 Jump Technologies. All rights reserved.

“Provider organizations

moving to mobile will

benefit from fast

implementation,

ubiquitous data

capture, low start-up

cost, long-term

affordability, and rapid

user onboarding to

quickly achieve the

ROI they’ve been

looking for in an ERP

system.”

John Freund, CEO

Jump Technologies Inc.

ERP Expectations Versus Results

Confidential. Copyright 2015 Jump Technologies. All rights reserved.3

Current Inventory Management

Results

Nearly every hospital in America has

implemented an Enterprise Resource

Planning (ERP) system, yet hospital

staff members report:• Stock-outs

• Overstocking

• Waste (due to expiring supplies)

• High labor expenses from manual

processes

• Lower-than-expected savings from

supply chain

ERP Results Don’t Meet

Expectations

• ~59% of projects have exceeded

their planned budgets

• 53% of projects have exceeded their

planned durations

• 56% of organizations have received

less than 50% of the measurable

benefits they anticipated from their

ERP software initiatives.

SOURCE: Panorama Consulting Solutions 2014 ERP report

[http://Panorama-Consulting.com/resource-center/2014-erp-report/]

Continuing Challenges in Inventory Management

Creating an inventory management infrastructure is key to addressing rapid growth, increasing complexity and disparate systems.

To ensure success, organizations must consider these challenges:

• Aggregating multiple ERPs• Multiple ERP systems become part of a single organization through growth, mergers, acquisitions, partnerships

• Aggregating information across these systems is difficult; migration to a single system can take years to complete

• Legacy system issues (cost, control, time)

• Legacy systems, including ERP-based supply chain modules and inventory cabinet systems have historically failed to deliver the results hospitals need

• ERP systems frequently take long periods of time to implement, exact huge consulting fees, and take years to deliver ROI (due to high initial investments)

• Hospitals wrestle with typical inventory management problems: stock-outs, overstocking, hoarding, maverick spending and waste due to expiring products

• Disbursement following delivery• Hospitals have successfully worked with distributors and internal distribution centers for timely receipt of the products they need

• Challenges remain related to the disbursement of supplies within the hospital and throughout large and loosely connected organizations

• Department-specific needs• Most inventory management systems support one approach, so hospitals must use a single process such as locked-cabinets or PAR

• Yet processes specific to different areas of practice or care would better meet the needs of clinicians and patients

• Single-Use Devices• One barrier to mobile adoption has been single-use devices; often heavy, bulky units used for scanning in specific systems or for a specific application

• Ongoing difficulties include data entry, the possibility staff members could carry more than one unit throughout their rounds if performing multiple tasks


Setting Goals to Improve Inventory Management

5

• Goals to improve supply management include:

• Create and implement an inventory management process that provides

system-wide connectedness and visibility

• Match processes to department-specific supplies and care in order to

increase nursing / clinical staff satisfaction, time with patient

• Eliminate stock-outs

• Scale down inventory (both on-hand and ongoing) to reduce overall cost

• Reduce labor associated with inventory management

• Eliminate off-contract spending and rush delivery charges

• Reduce waste from expiring product

Confidential. Copyright 2015 Jump Technologies. All rights reserved.

So, Why Go Mobile?

Confidential. Copyright 2015 Jump Technologies. All rights reserved.

Today’s mobile technology delivers numerous benefits. Though use in healthcare is in

early stages, it is rapidly gaining popularity and delivering benefits:

• Multiple applications can reside on a single device

• Mobile devices with cloud-based applications are constantly updated with latest software

• Mobile delivers optimal visibility throughout an organization, for a more connected supply chain

• The Aberdeen Group reports the importance of supply chain visibility is rising

• “Increasing visibility is a critical strategy for enterprises aimed at reducing costs and improving operational

performance in the context of their increasingly complex and multi-tiered global supply-demand networks.”

• Mobile is a highly efficient way to deliver technology; deployment is rapid, user adoption is

immediate, and process efficiencies and ROI are realized quickly

• Meaningful analytics result from improved data aggregation throughout the organization• With a robust infrastructure supporting a mobile-based system, data is constantly fed into smart reporting

• Supply chain leaders will benefit from a more accurate view of their entire organization’s use of supplies.

6

Mobile Technology in Healthcare

The use of mobile applications is growing exponentially:

• Mobile revolutionizing capturing information at the bedside• Data aggregation enables better understanding of treatment and patient outcomes

• Capturing information at point of care improves billing accuracy

• Builds understanding of the total episode of care

• Mobile apps provide continuing clinician education

• Up-to-date information dissemination, ongoing training, product introductions, best-practice sharing and care protocols

• Mobile apps being used to help patients to manage their health, engaging with care teams during episodes of care, receiving and

understanding aftercare instructions, and monitoring ongoing health issues

• Mobile technology will revolutionize the way the hospital enterprises are run

• Organizations gain greater flexibility to design, implement and effectively execute new business processes

• Smart devices make it easier to “see” throughout the organization as hospital systems grow in complexity and reach• Visibility to an entire healthcare delivery organization, specifically supply inventory and use, becoming a requirement

• Supply chain practitioners will leverage inventory reporting tools that provide real-time velocity for every item used within an organization

• Smart devices make staff adoption easier, standardize processes for consistent usage, create greater visibility with more accurate reporting

• Ubiquitous data capture builds intelligent data, creating the cornerstone of solid business decisions


The Next Generation of Supply Chain is Data Driven

As hospital supply chains evolve, they will require considerable

tracking of complex movements throughout a diverse organization.

In a recent article, Daniel Miller, Divisional Head, Finance, at Innovation

Enterprise, examined the “7 Characteristics of the Next-Generation Supply

Chain.” Highlights for healthcare providers include:

• Data Driven

• Data needs to be collected from as many sources as possible to create wide ranging insight with a positive

impact on the supply chain

• Flexible• Next generation supply chains will be agile operations that adapt to changing circumstances

• Proactive• Next generation supply chains realize the importance of continuation of service regardless of conditions

• Optimized Inventory• On-hand inventory must meet demand without being excessive

• Next generation supply chains manage supplies more efficiently, while continuously monitoring stock levels

The other characteristics examined included global, green and fast.


“7 Characteristics of

the Next Generation

Supply Chain”

http://channels.theinnovationenterprise.

com/articles/the-7-characteristics-of-

the-next-gen-supply-chain

What Comes Next?

• Healthcare organizations gain immediate benefits with mobile

• Supports better business processes

• Fast implementation

• Easy staff training

• Rapid adoption

• Pervasiveness of data capture

• Low start-up and ongoing costs; quickly achieve ROI and additional

savings

• Improved data accuracy and better reporting; information needed to

make smart decisions for the hospital business


Thank You!


To read the full white paper, visit:

Mobile Technology - An Essential

Component of the Next Generation

Supply Chain in Healthcare

http://www.jumptech.com/sites/default/files/Jump_Mobile technology whitepaper_FINAL_0.pdf