Kurt Kuehn is SVP of worldwide sales & marketing for United Parcel Service (UPS) so it seems legitimate to take what he has to say about supply chain management with a grain of salt since his company provides such services. However, these
two articles published in Healthcare Purchasing News and Materials Management in Health Care respectively contain a wealth of valuable information. First, supply costs (pharmaceuticals included) are second only to labor and amount to up to 30% of total spend, so hospitals that try to save mostly on big, expensive equipment are missing cost control opportunities. Second, up to 40% of hospital supply-related costs are dedicated to handling, moving and processing material and supplies as opposed to less than 10% in other industries such as consumer goods and manufacturing, because of a high volume of manual transactions and the prevalence of paper-based purchases.
more...
December 31, 2005
Related topics:
Finance, Supply chain/SCM, Supplies, IT & software, Cost savings
Earlier this month, the Washington Post published a series of articles on the reprocessing of single-use devices (SUDs), first covering
savings and safety concerns and
explaining the process, then the
consequences of cuts, and
industry ramifications (followed up by a
Q&A with readers). Inflamed by the conclusions of these articles, the Association of Medical Device Reprocessors fired back a defensive but argumentative
statement while Rep. Rosa L. DeLauro (D-Conn.), the ranking Democrat on the House Appropriations subcommittee that oversees the FDA
reacted by suggesting the FDA should increase the number of inspectors assigned to reprocessors. That may be necessary, but the AMDA is right to point out that brand new products are not flawless in the first place. Thomas M. Davis III (R-Va.), chairman of the House Committee on Government Reform,
also wrote to the FDA a few days later.
more...
December 30, 2005
Related topics:
Ethics & Scandals, Quality, Safety, Errors, Cost savings
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