Perfect Order and Beyond

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1 SMI Fall Forum 5/17/12 Curtis Dudley, ROi, Vice President of Integrated Business Solutions Dennis Black, BD, Director, e-business

2 BD FORTUNE 500 company (#316) Locations in more than 50 countries Approximately 29,000 associates worldwide Serves healthcare institutions, life science researchers, clinical laboratories and the general public Sells a broad range of medical supplies and services, devices, laboratory equipment and diagnostic products BD Nexiva Closed IV Catheter System BD SurePath PAP Collection System BD PosiFlush Flush Syringe BD Viper System with XTR Technology BD Influx Flow Cytometry System BD Vacutainer Push Button Blood Collection Set BD Insulin Syringes

3 ROi Integrated Sourcing Solutions Product and Services Contracting Utilization Optimization Contract Compliance Monitoring Rebate Management Pricing Administration Member Services Integrated Business Solutions Purchasing and Accounts Payable Services Information Solutions Account Implementation Customer Service Facilities: Co-workers: Corporate Office St. Louis, MO Consolidated Services Center Springfield, MO 350 FTEs from varied clinical and business disciplines Manufacturing Solutions Pharmaceutical Repackaging Custom Procedure Tray Manufacturing Print Operations Supply Chain Solutions Warehousing and Distribution Services Inventory Management Transportation Management Process Improvement

4 ROi One of the largest GPOs in the U.S. Highest $ penetration per bed Single Source negotiation strategy 500+ contracts ($800 million) International focus Demonstrated results in reducing cost Efficiency based sourcing Provider Integration 1st Provider based Private Label program in the US Growing interest with other providers Print Services Instrument Repair Largest Provider based CPT manufacturing operation in US FDA Registered Print Services Rx Unit Dose Repackaging Top 10 Volume Distributor according to HIDA Med/Surg Rx Office 80+ Vehicles +2.3 million miles per year Every location every day Back-haul common carrier Courier, TL and LTL 31 Hospitals $4.05 B Operating Revenue 4,367 Licensed Beds 4,626 Medical Staff Members

5 Mercy 27 ACUTE CARE HOSPITALS 3 HEART HOSPITALS 4,367 LICENSED BEDS 35,580 CO-WORKERS 385 PHYSICIAN PRACTICE LOCATIONS 4,626 MEDICAL STAFF MEMBERS 1,245 INTEGRATED PHYSICIANS $4.05 Operating Revenue (Billions)

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8 Perfect Order Definition Phase I Establish the technology infrastructure and processes to achieve Perfect Order Phase II Implement GS1 data standards to make the process more efficient and sustainable. Include clinical processes.

9 Data Challenges are a Barrier Just 1 Hospital Many Proprietary Numbers for Each Customer St. Michaels St Michaels St. Michael s Saint Michaels CA JGGG (178 Total) Many Product Numbers for Each Product BD BD CARDINAL HEALTH BF OWENS & MINOR OWENS & MINOR AMERICAN MEDICAL DEPOT AMERICAN MEDICAL DEPOT GOVERNMENT SCI SOURCE FSC CS GOVERNMENT SCI SOURCE FSC PK ALLIANCE JOINT VENTURE THOMAS SCIENTIFIC 8938M25 THOMAS SCIENTIFIC 8938M28 VWR INTERNATIONAL BD Ways to Spell BD (1 Customer) B D VACUTAINER DIV B-D DIAGNOSTICS B-D SUP CHAIN SVCS BD / ELASTIC HEALTH SUPPORT BD BLOODCOLLECTION B D ACUTECARE B-D LABWARE B-D VASCULAR ACCESS BD ACUTECARE BD CONVENTION NEEDLES B D DIAGNOSTIC B-D MICRO BIOLOGY SYSTEMS B.D. MICROBIOLOGY BD ACUTECARE DIV BD CRITICAL CARE B DICKINSON B-D MICROBIOLOGY BARD PARKER BD ACUTECARE DIV. BD DBA BECTON DICKINSON AND CO B&D B-D MICROBIOLOGY SYSTEMS BARD-PARKER BD BIO SCIENCE BD DIAGNOSTIC B-D B-D PRIMARY CARE BARD-PARKER RESPIRATORY BD BIO SCIENCES BD DIAGNOSTIC INSTRUMENT SYST B-D / VISITEC B-D PRIMARY CARE DIAG

10 Sunrise Dates Achieved - February 2011 End-to-End Integration of GLN/GTIN Achieved February, 2011 Additional Implementation Steps Continue BD (Product Design) GLN Mercy (Patient) (AI) 10,17 SSCC GTIN

11 BD GTINs created for each product and package level Product data defined, created and managed BD GLNs assigned and managed Validated customer GLNs collected and stored Synchronization of EDI Processes Order Management Data stored in ERP system

12 Use of GTINs Challenges Included: Reconciling Data Using BD s GTIN Data in Mercy/ROi IT Systems Mutually Learning to Transact w/gtins

13 BD Factory Production order and GTINs pulled from ERP GTINs and production data (Lot/Expiry, etc.) printed on products (barcode and human readable) GTINs used to track products during manufacturing GTINs used to track contents of shipments Manufacturing data stored in ERP system

14 BD Distribution Center GTINs and ASNs used for receipt verification GTINs used to assure accuracy of picked products GTIN and barcoded production data used to create and track shipping unit Shipping unit content barcoded and tracked with pallet license plate (SSCC) ASNs containing GTINs, SSCC numbers and GLNs sent to customers Inventory and delivery information stored in ERP system

15 ROi Distribution Center GTINs used at the point of receipt to validate delivery accuracy GTINs used to put products into inventory GTINs used to pick products and create shipments Manufacturer assigned barcoded production data used to rotate inventory and for quality control processes GLNs assigned to ROi distribution center and Mercy facilities to improve shipping and pricing accuracy

16 Mercy Hospital Receiving Advance Ship Notice (ASN) received from ROi No additional receipt activity required due to the high quality of pick using GTIN to validate item and quantity Chain of custody maintained through automated processes

17 Mercy Store Rooms GTINs scanned to help search for products in Mercy s MMIS system GTINs used to order and track medical devices for use in labs, pharmacy, storage locations and in patient care areas Receiving and Delivery program used to scan and pick products for various departments throughout the hospital system GTINs used to drive inventory replenishment

18 Patient Room/Operating Room Mercy Hospital Patient Room Patient arm band is scanned identifying location and patient in point of care system GTINs on product packages are scanned at the point of care capturing critical information to drive: - Product consumption - Inventory replenishment - Patient charging - Cost accounting Mercy Hospital Operating Room Products used during the procedure documented on the patient chart GTIN data tracked all the way from the point of order to the near exact time the product was applied to a specific patient In time, industry supported recall notifications for specific GTINs could trigger automatic reports alerting administrators of potential issues

19 Mercy/ROi Data

20 Healthcare Data

21 Reduced Error Rate Part # & UOM Discrepancy Rate Pre Perfect Order Discrepancy Rate Post Perfect Order Discrepancy Rate Post GTIN Discrepancy Rate

22 Many Benefits Achieved Achievement of Perfect Order More accurate purchase orders, invoicing and payment Clean data on delivery locations and account information Up-to-date item master and vendor master Real-time product usage and consumption Better product and lot number tracking Improved infrastructure and data accuracy for future patient care initiatives and the recall process The full case study can be found at: BD and BD Logo are trademarks of Becton, Dickinson and Company BD and Resource Optimization & Innovation, LLC All other brands are trademarks of their respective owners.

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