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Materials Management Services


    Our Materials Management Services offer an array of Programs to assist healthcare institutions to reduce costs, enhance resource utilization, and improve services.  Each engagement is carefully tailored to meet the needs of the specific healthcare institution.  Our efforts are focused to provide our clients the maximum benefit on every consulting engagement.  PECA professionals are prepared to provide in the following areas of Materials Management.

Operations Assessment Services

Are Materials Management services designed and operating effectively?  Our experts will conduct an analysis of current formal and informal Materials Management design and operations. By utilizing a functional approach (i.e. procurement, receiving, supply chain, sterile processing, etc.), we can develop a systems perspective of operations to identify strengths and weaknesses. We will draft recommendations to improve noted weaknesses, assist in prioritizing strategies for improvement and develop an implementation plan. All recommendations will include a cost/benefit analysis.

Supply Chain Re-engineering Services

Is your supply chain maximizing value? Every time a product is handled, cost is added.  Supply chain activities include a variety of inter-dependent processes.  The PECA team will critically assess current practices relative to the supply chain and develop detailed process maps and cycle times of all critical materials processes.  Utilizing our experiences with hundreds of health care facilities, we will re-engineer these process maps to enhance the efficiency and effectiveness of the service level provision in the supply chain.  We will develop flow diagrams of the supply chain processes to identify unnecessary and/or redundant activities.  We will conduct par capacity analyses by patient care area to identify low utilization of current resources and will re-engineer the current processes to assure a proper balance is established between utilization of labor, inventory, and space resources.  The outcome of these efforts will be reduced costs and enhanced service levels.

Customer Support Services

Are your customer satisfied with Materials Management? As with other support services, materials management is the most visible upon its failures.  We will provide processes to objectively measure service provision (e.g., customer service surveys), identify opportunities to manage and enhance service provision.  Our projects focus initially on the customer practices for, we believe, the key to customer satisfaction is understanding the customer and their needs.  We will work with the materials staff to understand and practice proactive customer management behaviors.  The outcome of these efforts will be a greater degree of customer satisfactionn.

E-Commerce Services

Is E-commerce appropriate and applicable to your operations?  Our professionals can help you evaluate the present and future electronic technology and determine the applicability to your operations, present and future.  We can help you establish a business plan to implement electronic technologies in your business transactions, establish safeguards to assure security is not compromised, and train your staff on the appropriate utilization of electronic technologies.  The degree of successful application of these technologies, and the appropriate utilization, will vary from healthcare provider to healthcare provider.

Product Line Services

Are you effectively managing the cost of your product lines?  We can provide a full assessment of specific product lines (i.e. orthopedic implants, pacemakers, intraocular lenses, etc.) To assist clients in managing the cost of supply intensive areas.  Our typical project involves defining consumption, identifying supplier market shares, development of a request for proposal, supplier evaluation, supplier negotiation, selection of suppliers, and contract development.  Inherent in this process is the close working relationship with the medical staff to encourage change, identify opportunities, and establish negotiating leverage.  We have been very successful in developing prime supplier relationships for major product lines resulting in cost reductions, more appropriate utilization of technology, developing measurable clinical outcomes, and operating efficiencies. 

Procurment Services

Is your organization buying effectively?  Regardless of the procurement method or degree of centralization, PECA can assess current methods for efficiency and pricing competitiveness.  Reviewing historical product utilization, along with our extensive database of over 40,000 individual products, we will compare current price schedules to those available from group procurement organizations and corporate agreement alternatives.  We can also study the efficiency of the ordering process, as well as the reconciliation of the pricing and terms to the invoice, purchase order and published purchasing agreements.  We can also review the purchasing practices to assure proper internal controls are established and maintained.

Inventory Management Services

Do you have the right amount of inventory?  Inventory represents a buffer between supply and demand.   Accurate data can forecast the need and availability of products to shrink this buffer.  We can help reduce inventories, both official (carried as an asset and located in storerooms), and unofficial (expensed and located at the point-of-use).   Using statistical analysis, we will measure inventory throughput by commodity and by location, develop strategies for reduction and establish monitoring systems to ensure inventory levels remain low.  We can also serve as an agent to negotiate with vendors to return excess inventories for credit.

Product Selection/Utilization Services

Are you choosing and using products and services effectively? effective reduction of product costs often involves a detailed analysis of product introduction, standardization, value analysis, and consumption.  We can develop purchasing profiles, assess product usage, and determine price trends.  We can also critically assess your Products Committee to create a more dynamic and effective process of product evaluation and review.  By identifying product redundancies, we can help to effect lower costs through standardization of products and/or practices.

GPO Evaluation Services

Which group-purchasing alternative, if any, is the best for your organization?  Our professional staff can help you evaluate and select the best group purchasing fit for your organization.  We will develop a market basket of your historical purchases, identify exact and comparable price matches from the evaluated purchasing programs, evaluate subjective criteria, and help you determine the "best fit" for your organization.  All of our analyses will be supported by detailed cost/benefit projections.  We have also assisted our clients in implementing and monitoring compliance with GPO contracts.

Invoice Review Services

Does your supplier invoice reflect the contract pricing and the terms you negotiated?  Despite group purchasing and the institutions efforts at negotiating, many suppliers invoices do not match contract pricing.  If your information systems are limited in scope or application, you may have a large opportunity to realize additional savings/credit through an aggressive review of the supplier invoices.  Our team will review your invoices to assure you are realizing the contractual terms negotiated.  As opportunities are identified, we will assist in establishing supplier payments/credits and develop systems to assure your future invoice reflect contract terms.

Supplier Partnership Services

Are supplier value-added programs right for your organization?  PECA can assess the financial and operational feasibility of these programs for the institution.  Through a structured process of determining scope, identifying current operations and costs and developing financial models to evaluate assumptions, we can assist clients to evaluate these programs and make informed decisions.  Should the institution decide to proceed with an evolved partnership relationship, we can also assist in evaluating potential partners, developing and negotiating contracts and implementation.

Information Support Services

Are you getting the most from your information system? The purpose of any information system is to support timely decision making of operations. By reviewing operations and evaluating the current information system, we will assess the adequacy of your information support utilization and capability.We can also provide assistance with defining needs, evaluating, selecting, and implementing a new information system. We can also work with your staff to assure you are receiving the maximum utility from your system.Our staff are experienced with a variety of information systems including Lawson, HBOC/ESI, Medi-tech, and others

Compliance Services

Are you in compliance with the variety of standards developed by accrediting and regulatory organizations?   Standards developed by the Joint Commission for Accreditation of Healthcare Organizations mandate that all position descriptions be criteria-based.  In addition, OSHA, state and local agencies, and other organizations have developed regulatory guidelines with mandatory compliance requirements.  PECA can assist in developing criteria-based position descriptions that provide prescriptive and proscriptive expectations. We can provide a review of your Materials Management department to determine the degree of compliance in your current operations and documentation, thereby facilitating preparation for JCAHO and other accrediting and regulatory organizations.

Performance Measurement Services

How does your Materials Management department measure up?  With the variety of processes involved, the absence of overall standards of performance measurement, and the lack of uniformity in the roles and responsibilities of Materials Management in otherwise similar institutions, evaluating the effectiveness of the materials management function can be frustrating.   PECA professionals can assist in development of a series of meaningful parameters of performance to provide ongoing assessment of the strengths and weaknesses of the operations.

Sterile Processing Services 

Is your sterile processing function working effectively?  PECAprofessionals, with experience in infection control, quality assurance, and sterilization practices, can provide an assessment of the sterile processing function.  This analysis includes the study of layout (product and workflows), practices and procedures, replenishment systems, regulatory compliance, centralization of services, and service levels. We can also analyze the effectiveness of current policies and procedures and develop/implement case cart systems.

Resource Allocation Services 

Are you staffed appropriately?  Using our database of hundreds of client healthcare facilities, we can analyze staffing levels in all areas of Materials Management. We can evaluate service provision, define work standards, and assist clients to develop and implement productivity systems and standards for materials management to assure prudent labor resource utilization. Most importantly, we can re-engineer the entire materials cycle to assure maximum resource utilization while maintaining and/or enhancing service quality.

Strategic Planning Services 

Do you know where you want Materials Management to go?  We can assist in the development of a strategic plan for Materials Management. This process converts concepts into a detailed plan to achieve enhancements in service levels and reduced costs. By working closely with the your staff, we will develop a logical sequence for reorganization and restructure of the Materials Management function.The strategic plan will include a detailed plan of implementation as well as identification of resource requirements(, information, staff, capital, etc.) and a cost/benefit analysis.

Implementation Services

Do you have the resources to implement the initiatives that you plan? Our professionals can provide ongoing assistance to healthcare institutions to train and educate staff and/or provide implementation assistance on an interim or ongoing basis.  Our expertise in change management can help our clients translate conceptual design to performance reality.

Interim Management Services

Do you have a vacancy in management? PECA staff can provide management assistance to support client medical center's short term and/or long term objectives for Materials Management. Our staff will function as the managers of key function (i.e. Materials Management, Purchasing, Supply and Distribution, Sterile Processing, etc.) and implement systems to produce immediate and ongoing bottom line savings.  Our on-site managers can provide transitional management (used to implement specific interventions), replacement management (used to bridge the gap between permanent managers) or management mentoring (combining Transitional and Replacement Management with active mentoring).  Regardless of the management function, our managers will demonstrate  team approach through open communication, conflict resolution, problem solving, and staff development.

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