IOS continually identifies and shares best practices from our customers to help educate the healthcare community on supply chain automation. Each quarter, we recognize an organization demonstrating exceptional best practices in supply chain.
Congratulations to One Medical, the winner of the IOS Q1 2019 Best Practice Award. One Medical has demonstrated outstanding capabilities in streamlining purchasing and inventory management processes on a national scale, leveraging technology to support patient care throughout the rapidly growing system.
The One Medical Story
Goals
- Automate supply chain processes and replace manual, paper-based systems
- Create cost savings through standardization
- Support all 72 locations with a single system and consistent processes
- Improve Accounts Payable processes
- Leverage EDI functionality and support punch-out with vendors
- Scale across a rapidly growing non-acute, multi location organization
- Support the mission of delivering high quality care to members
Results
“We piloted the Envi system in a single district in San Francisco, then rolled out across the country,” said Arthur. “Inventory management at One Medical is a two-pronged approach – supply chain is supported by a central team maintaining our core systems, processes, and item master, with local team members on the ground doing all local ordering and restocking, taking the administrative burden off of our clinicians by ensuring our clinical teams always have what they need for patient care.
“For consistency and quality, we maintain an item master in Envi used by all locations, containing pre-vetted suppliers and preferred products. We use punch out for one-offs and special circumstances. Patient safety is supported as locations use pre-approved supplies, and we benefit from cost savings using the same vendor partners across the country. “We’ve reduced the amount of on-hand stock and increased product turnover, helping reduce product expiration rates. Our offices have seen up to 10% reductions in on-hand supply costs and improved cash on hand through lower inventory. We’re also streamlining and standardizing the number of products in each office, saving time for our local teams. We’re using our space better, and making better financial and purchasing decisions. Finally, we’re seeing labor savings throughout and especially in AP.
“Envi helps us incorporate more Lean methodologies, for example, we’ve begun implementing Kanban two bin systems in several areas and plan to roll that out across the country. We’ve had a lot of success using the Envi AP module and reporting capabilities. The support we’ve received from the IOS team throughout the entire process has absolutely helped us achieve best practice level processes.”
“Ultimately, IOS and the Envi system gives our team peace of mind. We know our locations have what they need, where they need it, when they need it and that we’re making the best purchasing decisions possible to deliver on our mission of delivering the highest quality affordable care for all.”
Summary of Best Practices
- Reporting tools help track process compliance, support physical counting in each location, show purchase history and activity throughout
- Improved alignment between supply chain and finance
- Streamlined AP workflows, elimination of burdensome manual, paper-based processes
- Reduction of clinician’s time spent on supply management
- Ongoing focus on internal training on both processes and technology
- Continuous improvement to drive quality, standardization, cost effective care
- Scalability with standardized new office launch process
