OVERVIEW

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Healthcare Providers, specifically supply chain, are being pressured to transform from a linear order fulfilment structure in to a strategic data analytics process which would assist healthcare systems in lowering the cost of non-labor spending.  According to Logistics Tech Outlook, supplies, purchased services and capital equipment acquired by the supply chain represent approximately 33% of a hospital’s operating expense budget…and growing. 

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SCWorx provides a solution which enables healthcare systems to normalize and repair the key element to drive healthcare system efficiency…the Item Master.  At the fundamental layer of enabling the next generation of healthcare supply chain is an organizations item master.  The item master lists all products and services that a health system purchases and is a critical component in enabling logistics, strategic sourcing initiatives and spend analytics.  SCWorx operates under the basic premise that the item master is the single source of truth (SSOT) from which all other information systems (supply and otherwise) operate.

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Most industry estimates place the size of a hospital’s item master between 18,000 and 200,000 items.  It is also estimated that 30-40 percent of an item master files are inaccurate.  Inaccurate data within an item master create inefficiency and spending waste throughout the entire supply chain and health system.  Examples of problems from an inaccurate item master include; ordering wrong items, ordering off contract, extended sourcing process, wasted inventory, inability to properly order off of a contract, slow RFP turnaround and delayed and incomplete reimbursement due to missing data.

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Having an item master that is not categorized and normalized with proper attributes prevents supply chains from performing sourcing and spending analytics to engage in projects which will effectively lower costs.  With healthcare logistics costs significantly higher than other industries the need for a solution to the item master problem is immediate.

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In order to reduce cost in the healthcare delivery network, hospitals need to implement a solution which interoperates with other critical technologies and supply chain distribution standards that exist today.  With accurate product and pricing data that is categorized, and updated, accurately a hospital will be able to efficiently source products for the healthcare organization.