Put the value back in your supply chain 135 Kb - Cardinal Health

Activity-driven distribution model with
ValueLink® Supply Management Services
With an activity-driven distribution model, you’ll gain visibility for ways to
increase your operational efficiency, reduce your internal operating costs and,
in turn, reduce your distribution fees. It all starts with the ability to distinguish
the cost of goods from the cost of having them distributed. This allows
for strategic management of those controllable cost drivers.
Understanding the primary controllable cost drivers gives you the ability to add
or alter supply chain services and activities that impact your total cost. Our flexible
model will adjust to the level of activity your growing hospital or IDN requires.
An open-book approach
to pricing
Our activity-driven model points to areas where we can work together to continuously
improve total supply chain efficiency, reduce your inventory costs and provide you with
distribution savings.
Above all, clinician needs come first — new efficiencies and savings matter only when
nurses continue to have the products they need, when and where they need them.
With this transparent
approach, you know
what you’re paying for
with both product and
process costs—facts
and figures you need
to make supply chain
decisions that benefit
your bottom line.
Number of
deliveries
per week
Number of
internal ship
to locations
Primary controllable cost drivers
Product
value
per line
Cost for
ValueLink®
Services