The Medical Device Supply Chain Council recently spoke to Steve Downey, Chief Supply Chain & Patient Support Services Officer at Cleveland Clinic, about taking meetings with people in operations and the challenges facing providers.
How has the MDSCC been valuable to you over the years?
Throughout my career, I’ve recognized the immense value of collaboration and networking within the healthcare supply chain community. Organizations like MDSCC have played a pivotal role in bringing together senior leaders across various sectors of the industry. These organizations have not only facilitated networking but have provided a forum where meaningful relationships can develop. Time and again, I’ve found myself drawing upon these connections to tackle challenges and solve problems in service to our patients.
Another valuable aspect that stands out is the importance of gaining diverse perspectives, especially when addressing complex issues. By inviting input from suppliers, distributors, GPOs, and health systems, we can obtain invaluable “outside in” viewpoints. For instance, when grappling with challenges such as consignment, the collaboration of many perspectives facilitated sustainable solutions that benefited all stakeholders involved.
The collaborative environment fostered by MDSCC has not only enhanced professional relationships but has also served as a catalyst for driving positive change within the healthcare supply chain community. By leveraging these organizations, we can collectively address challenges and drive meaningful advancements in patient care delivery.
Why do you prefer to meet with Operations in addition to National Accounts?
Engaging in operations-to-operations conversations has been instrumental in addressing certain challenges within the healthcare industry. By delving into operational practices on both sides, we can swiftly identify potential root causes and devise cooperative solutions.
Recently, I encountered a situation where a health system was grappling with how to manage a custom catheter that was cumbersome to manufacture and stock, highly expensive, and hard to forecast. Through our discussions, they were able to eliminate the custom product, driving reduced costs and increased resiliency.
How can people in operations make the most of their meetings with you?
Look for commonalities and shared pain points. By pinpointing areas, such as data management or process inefficiencies where challenges are prevalent across the industry, we can develop targeted strategies for improvement. Whether it’s addressing rush freight through par level adjustments, tackling consignment issues with inventory buys, or managing SKU proliferation through rationalization, there are various approaches to enhance efficiency. However, it’s critical for stakeholders to highlight these challenges, so we can tailor our efforts effectively.
I’ve also learned the value of sharing priorities and strategic vision. When we openly talk about our priorities, we can identify where we overlap and find collaborative ways to achieve those goals together. Through aligning strategically and leveraging commonalities, we can forge stronger partnerships and drive meaningful improvements across the industry.
What kinds of challenges are providers facing that manufacturers could benefit by knowing?
In today’s healthcare landscape, several key challenges are driving the need for innovative solutions:
- Cost Pressures: Cost reduction efforts are more critical than ever, with heightened savings targets across the board. Identifying savings opportunities remains a top priority as organizations look for ways to optimize operations while delivering quality care.
- Shortages: Backorders continue to plague the industry, with hundreds occurring daily, resulting in significant expenditure.
- Staffing Challenges: While staffing levels have improved, securing skilled labor, especially in areas like Food Services and Sterile Processing, remains a persistent challenge.
- Technology Integration: Leveraging technology to optimize teams is a priority, but staying ahead of the curve poses its own set of challenges. The rapid pace of advancements, particularly in AI, requires a careful balance between addressing immediate needs while fostering innovation.
- Third-Party Risk: The number one risk to healthcare enterprises today is the risk posed by third-party partners. This risk spans cyber, supply chain, legal, and financial domains. With a vast network of over 35,000 vendors, managing and prioritizing risk mitigation efforts is crucial to protecting an organization’s integrity and patient data.