NCI Supplier Service-Best of Class Provider Presentation. What Makes A Best of Class Supplier?

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1 NCI Supplier Service-Best of Class Provider Presentation What Makes A Best of Class Supplier?

2 Cottage Health System Service is the number one issue. I am committed to a high service company, which I see as a true partnership -- Afshin Fatholahi Administrative Director Materials Management

3 Best of Class Based on the Following Research NCI Supplier Services (NCISS) Market knowledge Client Management Focus Groups Conference panel discussions Survey analysis

4 Suppliers Must Possess The Following Attributes Financially stable for the long term Risk sharing in the gains or loses of implementing a supplier program Respects the RFI & RFP protocol and decision process utilized by the provider favorable or unfavorable National Accounts representatives have the authority to resolve problems and commit to price

5 Suppliers Must Possess The Following Attributes Suppliers with multiple business unit coordinate their efforts under one umbrella Continuity between Corporate Account s s & Sales Offers utilization and total cost reduction programs Paves the way for for hospitals to order products from their distributors using electronic data interchange or E-E commerce

6 Suppliers Must Possess The Following Attributes Provides sales reports in an electronic format that may be tailored to the providers needs. When possible puts all of its products on contract specifically (PPI) Offers net invoice pricing

7 Suppliers Must Possess The Following Attributes Offers value-added added programs that allow hospital members to take advantage of the vendor s s area of expertise. A migration of specific areas of intellect and expertise such as Human Resources, operations, Accounting, etc Company must have good-to to-great product offering. No health care system will purchase substandard products (or should not!).

8 Clarian Health Partners Common Sense. Honesty. And most of all, hustle. -- David Hesson Vice President Operations

9 Top 10 Factors of Account Management 1. Knows-organizational structure and can align or integrate horizontally or vertically supplier offerings with provider needs, i.e., owned (assets merged), managed, etc. 2. Knows-Financial viability of provider (view latest financial reports available) 3. Knows-Vision, Mission, Values and Strategic direction of the provider 4. Knows-patient-based market share control in its primary service area 5. Knows- providers major competitors

10 Top 10 Continued 6. Knows-stage of supply chain development 7. Knows-GPO affiliation (shareholder?) 8. Knows-contracting strategy of IDN (is purchasing centralized?) supplier must know the entry points to introducing products to the hospital (e.g., Clinical Resource Management, Purchasing, etc. 9. Knows-involvement of Clinicians and Physicians in product and/or service decisions 10. Knows-process for measuring vendor performance

11 St Joseph Health System The customer needs to come first. A true partnership is developed based on the supplier alignment with St Joseph Health Systems Mission, Vision and Values -- Jim McManus Vice President Finance

12 Top 6 Supplier Community Programs Build partnerships with physicians Create and sustain a fulfilling supportive relationship with provider employees Sustain exceptional customer service and clinical quality Supports a community based health and wellness program Build programs for growth Sustain financial viability

13 Supplier is Knowledgeable and Interactive With Access Protocols Suppliers access through Materials Management. A collaborative approach involving teams comprised of product/service end users (e.g., clinicians), purchasing, logistics management and resource management personnel. End user involvement spans across the provider network. Interdisciplinary teams conduct evaluations to determine a product s performance in meeting minimum acceptability standards and qualify products prior to moving forward with a request-for-proposal process. Supplier contract award decisions are based on a number of key factors. Primary drivers to decision-making are based on a total delivered cost scenario. Other important decision points include manufacturer s value-add propositions, direct distribution opportunities, support on Resource Management utilization issues and community health education support. Successful product conversions and high compliance levels ensured.

14 Suppliers Measure Effectiveness - Establishes measures and metrics of mission critical factors impacting providers strategic direction Factors include: Customer/Patient Satisfaction Quality/Performance Employee Satisfaction Growth/Market Share Financial Performance

15 Suppliers Measure Financial Performance Reduce the overall costs of acquiring and delivering all goods and services Provide documented and significant economic impact opportunities Support revenue enhancement opportunities while improving provider margins Improve provider S & P ratings to support provider strategic direction

16 Virtua Health Best in Class Suppliers are those who can interact collaboratively with Virtua to provide the highest level of benefit to our common customer, the patient. Basically this type of collaboration results in a triple win. Most importantly the patient wins with a positive outcome, but there is also a win for Virtua and a win for the supplier. -- James Rivard VP, Support Services

17 Successful Provider Relationship Thorough preparation The ability to set limits & goals Keeping their emotional distance Good listening skills Clarity of communications Knowing how to close a deal

18 Supplier Strategic Penetration Plan Prioritize each of their strategic steps List action steps with time lines to accomplish plan Identify people needed to accomplish plan Identify obstacles to achieving a successful plan Estimate completion date of plan

19 Win-Win Relationship Does the agreement fall comfortably within the goals and limits of the provider? Can both sides perform the strategic penetration plan to provider expectations?

20 Vendor Personality Traits Empathy Respect Integrity Fairness Patience Flexibility Sense of humor Stamina Responsibility

21 Outcome to Provider An educated supplier Supplier has a strategic penetration plan Enhanced market awareness Increased product penetration through standardization Ongoing business initiatives are aligned with providers needs Positioned to receive revenue growth opportunities, and to provide optimum customer value Market access should expedite product acceptance

22 Supply Chain Management Supply Chain Management is rapidly becoming the most important aspect of business success. Those who manage their supply chain effectively will flourish and prosper, those who don't may not be around in a few years. Logistics/Supply Chain