Supply Chain Overview:

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Supply Chain Overview Roles, Process
Functions The University of Maryland Medical
Center James Lawrence Kernan University Specialty
Folder Strategic Plan for UMMS Supply
Chain Saved AS System Supply Chain Overview Final
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Table of Contents

• Pages
• Overview of Supply Chain
• Major Functional Roles 1
• Process 2
• Functions 3

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Major Functional Roles

• Supply Chain - Focuses on the alliance and
  long-term commitment between our hospitals for
  the purpose of achieving specific business
  objectives by maximizing the effectiveness of
  each hospitals resources relationships are built
  on trust dedication to common goals, and an
  understanding of each others individual
  expectations and values. Objectives are
• Optimizing the activities of firms working
  together (UMMS, MFG, GPO, Wholesalers
  Distributors).
• Highly competitive chains that reduce cost and
  add value at the same time.
• Establishing a portfolio approach to work with
  suppliers and customers.
• Corporate Contracting - Strategic sourcing
  function that leverages overall acquisitions as a
  tool for improvement rather than one focused on
  transactions only. Involves both cost reductions
  from better purchasing and effective partnerships
  across the supply chain. Typically focusing on
  three critical flows of the supply chain
  Product, Money and Information).
• Procurement - The daily ordering (replenishment)
  of supplies to meet the needs of the customers.
• Materials Management - Manages the movement of
  products and inventories within the hospital,
  making sure the right products delivered at the
  right place at the right time. Other key
  functions include internal and external
  distribution, receiving, central stores, laundry
  linen and the daily replenishment of supplies.
• Value Analysis - A process that allows the
  introduction of new products and equipment to be
  presented for evaluation before being accepted as
  part of the organizations Item File (Formulary).
  The principles of patient safety, best practices,
  regulatory compliance, and cost effectiveness in
  the forefront of all decisions.
• Materials Management Information Systems (MMIS)
  - A software repository for data organized in a
  format that is suitable for ad hoc query
  processing that ties together vendor, product,
  usage and pricing information across the System.
  Information is stored in the Item File, Vendor
  File Receiving History and Payment History. This
  information is critical to any supply chain cost
  containment efforts.
• Reporting (Metrics) - Financial reporting
  information that tracks the cost of supplies and
  pharmaceuticals by patient day. Information that
  requires further development to focus on the
  lowering of costs.
• Customer-Centric Supply Chain - Supply chain
  focuses on the customers requirements meeting
  daily needs and understanding requirements for
  product initiatives.

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4
Overview of Supply Chain
6
5
Goods are
Delivered goods

1
3
2
4
delivered to
are received
user site
Goods shipped to
entered in
Loading Dock
Vendor
Purchasing
user signs
PMM
8
Department
receives
initiates
Vendor
for receipt
(Customer)
purchase
negotiation
ships goods
of goods
Match 2
identifies
order and
and order
to delivery
5a
need for
obtains
for goods or
location
Goods shipped to
goods or
required
services via
referenced
User Site
Patient (billable) or patient
unit (non- billable) is billed for goods
9
User site
services
products/
P.O.
on P.O.
7
counts
Department
services
reconciles
matches
goods used
delivered goods
Match 1
Inventory is managed
1b
3a
vs
charges
to packing slip,
to ensure
Value
Vendor
signs packaging
appropriate
analysis
provides
slip faxes to
charge
process
service to
Receiving
capture
engaged for
user site
3c
new
5b
products or
3b
AP matches
10
to examine
Receiving
Tangible
high dollar
Vendor
enters
goods to
items on a
Report
sends
Receipt
receipt
generated
routine
3g
invoice to
information
information
basis
for the
AP. AP
into PMM
Payment
in PMM
Department
tries to
based on signed
is made
supply
match
packing slip
to vendor
chain
3d
3e
invoice to
per
management
receipt
Match 2
User sites
P.O. terms
AP faxes
3f
signs invoice
Service
Match 3
confirming
Purchasing
invoices to
services were
enters Service
user site
rendered
Receipt
satisfactorily
information
faxes back
into
to AP
PMM

Indicates additional areas of collaboration and
opportunity
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5
Overview of Supply Chain - Functions
Notes PMM is Pathways Material Management, a
McKesson system utilized by UMMS. Key elements
with financial impacts.
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