November 1

3 Reasons Why Ignoring KPIs Will Cost You Time, Money, Or Resources You Don’t Have In Abundance


We just talked to a client the other day who is concerned that they might not have enough supply chain staffing to handle the surge in patient volume that has intensified at their healthcare organization over the last 12 months. Most healthcare organizations maintain the same level of staffing year after year but patient volumes in all areas continue to rise, especially in outpatient areas. The question is, does your supply chain team have the staffing to handle this expanded workload? These are the kinds of questions that we are helping clients answer with comparative Key Performance Indicators (KPIs) so they know where they stand on any operating metric (labor and non-labor) that they decide to track. Here are three more reasons why ignoring KPIs will cost you time, money, or resources you don’t have in abundance:

Comparative KPIs Save You Time, Money, and Resources

1. Close Learning Gaps: By measuring and monitoring your critical supply chain processes you can detect when your staff is ignoring your protocols, thereby revealing learning gaps requiring training to reinforce your rules. For, you see, inattention to detail can easily happen when your staff are dealing with thousands of transactions annually. Remember, training is one of the secrets to your supply chain success.

2. Measure Performance: How would you know if you are meeting or exceeding you or your customers’ expectations without measuring your results? For example, how would you know if your waste management utilization cost was 15% higher than your peers’? You wouldn’t unless you compare your laundry/linen KPIs to other healthcare organizations doing the same or similar work.

3. Detect Unfavorable Patterns: Just because your costs or quality metrics for a commodity are in control in one, two, or even three quarters doesn’t mean they will stay that way. A case in point: We see over and over again that DaVinci Robot reusable arms aren’t being reprocessed often enough (as per manufacturer’s recommendations) to make them cost effective. Only by measuring and monitoring a specific DaVinci Robot KPI can you be sure you are getting your money’s worth for this commodity.

KPIs are all about knowing where you stand on your key cost, quality, and safety outcomes on a range of supply chain metrics that can make the difference between your supply chain operations reaching the next level of performance. To paraphrase Paul J. Meyer, “Excellent performance is never an accident.” It is the result of a commitment to measure, monitor, and manage your outcomes. With this said, how would you rate your own supply chain labor or non-labor performance based on the criteria I just talked about?

P.S. If you have areas of your supply chain operation that you, too, would like a comparative KPI to measure your performance, please email us at [email protected] for three no cost/no obligation FREE comparatives that can change the way you measure, monitor, and manage your supply chain operations forevermore.

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