July 24

4 Things Supply Chain Leaders Need to Know About the Benefits of Benchmarking

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If you are a frequent reader of our blog, you would know that we are very passionate about hospital supply chain benchmarking because it will make your supply chain operation better than just good. Yet, for those who still doubt the benefits of healthcare supply benchmarking, here are four things you need to know to change this mindset:

  1. You will know exactly where you stand on every area of your supply chain operations: The worst thing that can happen to you is that you are flying blind, not knowing your strengths and weaknesses. This could lead to an embarrassment waiting to happen, like your inventory turns are too low or your PPI pricing is too high.
  2. The establishment of baseline benchmark standards will give you a reference point for measurement: With no standards in place, you must rely on your customers to manage their prices, standardization, and consumption. I don’t believe that they have the time, knowledge, or interest to do so.
  3. This will enable you to wring the towel dry on ALL your supply chain expense savings: Most savings opportunities are hidden from our view, especially now that the ripe fruit has been picked. The only way to wring the towel dry of all available savings is through benchmarking.
  4. Gain buy-in from your internal customers and stakeholders with accurate benchmarks: No one changes for change’s sake. They must be convinced that it is time to change. The best way is to show them what their peers are doing.

If you are benchmarking already, congratulations! If not, these four things should be a stimulus for you to reconsider doing so. It is the silver bullet for your supply chain success.


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Tags

baseline, benchmarking, customers, Healthcare Supply Benchmarking, hospital supply benchmarking, ppi, savings, supply chain


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