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

The ValueLink® Services advantage
We offer a collaborative effort that extracts the most value
from our services and adds it back to your supply chain.
As part of the ValueLink® program, we work with you to deliver
the most efficient, streamlined and cost-effective operations.
Supply chain efficiencies
ValueLink® Par Optimization is a service
quality improvement program that utilizes
a Lean Six Sigma driven approach to
optimize the supply chain management
process and achieve greater than 99.5%
product availability at the point of use. Par
Optimization virtually eliminates stockouts
and helps to improve clinical satisfaction
due to product availability.
Benefits
• Analysis of historical clinical data enables
proactive management of cycle counts,
expired product removal and stock rotations
• Uses mathematical calculations and
clinical advisory to establish both logical
and rational par levels
• Aligns on-hand inventory and service
schedule with true demand
Did you know?
50%
of departmental inventory is inactive*
10%
of inventory expense is obsolete*
“Cardinal Health has excellent solutions, including Par Optimization and other modules that you
can integrate to increase performance.”
Dan Williams Senior Director of Finance, Truman Medical Centers
Cost containment
ValueLink® Services helps eliminate
the large cost of storing, maintaining and
distributing supplies. This service shifts
the central distribution function from the
hospital to Cardinal Health. Since supplies
are delivered in pre-organized totes directly
to departments, the cost to sort, transfer and
unpack products dramatically decreases.
Benefits
• Reduces storage and on-hand inventory
levels, and associated holding costs
• Storage space turns into clinical,
revenue-generating space
• Reallocation of labor and capital for other
high-priority activities
“There has been a precipitous decline in the cost of getting the product where it needs to be.”
Michael Reeves System Executive, Supply Chain Services, Baptist Health
25%
of clinical staff time is spent on supply
chain activities*
74%
Stockouts … redundancy, variation
and unnecessary steps … contribute
to the 74% of time nurses spend
outside the patient’s room meeting
administrative responsibilities **
25%
Inventory represents as much as
25% of the typical hospital’s
operating budget **
Clinician satisfaction
From a patient care standpoint, ValueLink®
Services is one more valuable tool to reduce
the amount of clinical staff time spent on
supply chain activities. ValueLink® Services
not only saves costs, but also helps improve
quality of care by taking the nurse out of the
supply chain process—so the focus can be
more on where it belongs: the patients, not
searching for products.
Benefits
• Less clinical staff time devoted to ordering
and handling products
• Increases clinician satisfaction by ensuring
products are always available
• Minimizes stockouts at the point of use
* Source: Cardinal Health benchmarking
model 2003 InventoryLink® database
** Source: Squire, Robert W., Putting
Information to Work: A Strategy for
Boosting Supply Chain Performance
“If you’re taking care of them, nurses don’t even know Par Optimization is running in the background…
Now they have more time to dedicate to patient care.”
Linda Bottorff Corporate Director, Materials Management, Baptist Health