Supply Chain Advisory and MMIS System Oracle Implementation
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The document presents an overview of a session on supply chain advisory and Oracle implementation led by Lee Spitzer from Alithya. It covers topics such as data optimization, inventory management, and integration challenges in healthcare settings, emphasizing the need for clean item masters and optimized business processes. Various strategies for improving efficiency and compliance in procurement practices are discussed, alongside lessons learned from Oracle cloud implementations.
Supply Chain Advisory and MMIS System Oracle Implementation
- 1. Session#21093 Supply Chain Advisory and MMIS System Oracle Implementation Presented by: Lee Spitzer
- 2. Session Overview • Introductions • Who is Alithya • Data • Spend Optimization • Handhelds • Break • Inventory Cost Reductions • Distributions • Break • Workflows • Data Reporting • Q&A Together Towards Tomorrow INTERACT 21 VIRTUAL| JUNE 14 - 16
- 3. Lee Spitzer Together Towards Tomorrow INTERACT 21 VIRTUAL| JUNE 14 - 16 Alithya Director of Supply Chain [email protected] • Lives in Franklin, TN • Been with Alithya for 5 years • Worked with Oracle ERP for 15 years, EBS Background and Oracle Cloud, Cloud for last 5 years • Experience in health care, distribution, manufacturing, maintenance, food and beverage • Worked on over 15 Oracle Cloud SCM Health Care implementations • Oracle Cloud Certified – Inventory • Integrations with Oracle SCM and Procurement Cloud • Solutions team at Alithya • Hobbies – BBQing, playing guitar, walking, bicycling
- 4. Together Towards Tomorrow INTERACT 21 VIRTUAL| JUNE 14 - 16 My journey to Oracle Cloud and Healthcare Healthcare Learning Curve • Item Master / MFG Part Number / Vendor Part Number • Big Item Master • GPO / Contract Pricing • Integration Dependencies, EDI, HL7 • High Velocity Transactional P2P Volume • Stock / Non-Stock – Perpetual / Non-Perpetual • Criticality • JIT with main distributors Oracle Cloud Learning from EBS • No DBAs and Developers - Integrations • No Java, PL/SQL – Web Services • No VPN • Patching / Maintenance • 3rd Party for mobile • Procurement and Supply Chain like EBS
- 5. Alithya Oracle Practice Together Towards Tomorrow INTERACT 21 VIRTUAL| JUNE 14 - 16 Enterprise Performance Management (EPM) Enterprise Resource Planning (ERP) Supply Chain Management (SCM) Human Capital Management (HCM) Organizational Change Management Process Design (Redesign) Strategic Roadmaps Cloud Assessments & Health Checks Training Services Health Care Financial Services Manufacturing Retail/CPG Professional Services Utilities Others Data Services Analytics Hosting & Infrastructure Managed Services & Support Integration Security
- 6. SCM Healthcare Implementation Challenges Together Towards Tomorrow INTERACT 21 VIRTUAL| JUNE 14 - 16 Item Master Not Clean • Previous system in place for 10+ years • Item Master not clean needs TLC, active / inactive, descriptions not standardized • MFG or Supplier Catalog Part Numbers Incorrect • Lack of Integrated Solutions – HCM vs ERP, SCM / Procurement and Finance on different systems • Lack of documentation • Mobile solution is based on outdated technology or absent • EDI on legacy hardware • Integrations are difficult and costly • Difficult for reporting and analysis Outdated ERPs / Technology Too Much Paper! • Paper for Inventory Tracking Transactions • Paper for Requisition Approval • Paper for Capital Approvals • Stickers for chargeable products
- 7. Feedback From SCM Cloud Implementations Together Towards Tomorrow INTERACT 21 VIRTUAL| JUNE 14 - 16 • Lessons learned • More time from added workload • Allocated resources to focus on implementation • More testing • Better understand how integrations work in Oracle cloud • Better understand how Item Master and Blanket Purchase Agreements • Better understanding the supplier master / supplier site structure • Business Process Hurdles • Didn’t understand some of the options in Cloud vs current system • Moving toward electronic approvals was more challenging than expected • Projects • Key Functional Differences • Approvals • Data Conversions • Understanding FBDI • Crosswalks are critical • PO Conversion
- 8. Together Towards Tomorrow INTERACT 21 VIRTUAL| JUNE 14 - 16 Not ready Intermediate Impact Low Impact Cultural Readiness Technology Readiness People Readiness Process Readiness Existing processes are extremely manual and repetitive; therefore little complication exists from a technical perspective. Cleanliness of Item master and Item number issues are known and need to be addressed Perpetual inventories may require Physical Inventory as part of conversion load. Tool to utilize for patient charging is TBD: EMR or Mobile The OR, nursing staff and staff managing floor stock will be asked to make process changes in order to achieve organization-wide efficiency related to patient charging. This effort will require a dedicated information sharing and training campaign. Change to perpetual Inventory for all warehouse areas will require dedication to performing timely system transactions Core team is strongly supportive of this effort to increase efficiencies and has clear ideas regarding opportunities to increase process improvement. Nursing, OR, and floor staff are unaware of pending changes and need to be engaged. The nursing organizations' processes aren't consistent in terms of patient charging. Process adjustments and buy-in will be required to increase efficiency; nursing leadership is open to change. The management of material flow must be reengineered and optimized across the organization to reduce expediting charges, etc. Ensure new processes allow expense/revenue to impact appropriate dept (i.e. OR) vs. hitting material operations Floor stock is managed outside of the supply chain organization; there is opportunity to bring this process within material operations.
- 9. Going from status quo to leading practices Together Towards Tomorrow INTERACT 21 VIRTUAL| JUNE 14 - 16 Change mindset from lift and shift to lift and optimize Review business SCM processes and evaluate honestly where you are today and key objectives and goals for the future. Optimization can happen during your implementation journey but also plan for optimization after your implementation. Improve efficiency, leverage the Oracle Cloud Solution to the fullest!
- 10. Data Item Master and Blanket Agreements Vendor Model Inventory Organizational Structure Crosswalks Supplier Master Item Master Units of Measure Accounting to Departments / Locations Inventory Organizations / Subinventories / Locators Transformation of the data and data cleansing Leverage cleansing 3rd Party tools NuVia, DataLynx, Premier Standardize Item Descriptions Common Model Item Master UNSPSC and HCPCS Together Towards Tomorrow INTERACT 21 VIRTUAL| JUNE 14 - 16
- 11. Item Master Together Towards Tomorrow INTERACT 21 VIRTUAL| JUNE 14 - 16
- 12. Item Master Together Towards Tomorrow INTERACT 21 VIRTUAL| JUNE 14 - 16
- 13. Item Master Together Towards Tomorrow INTERACT 21 VIRTUAL| JUNE 14 - 16
- 14. Item Master Together Towards Tomorrow INTERACT 21 VIRTUAL| JUNE 14 - 16
- 15. Item Master Together Towards Tomorrow INTERACT 21 VIRTUAL| JUNE 14 - 16
- 16. BPA Headers Together Towards Tomorrow INTERACT 21 VIRTUAL| JUNE 14 - 16
- 17. BPA Lines Together Towards Tomorrow INTERACT 21 VIRTUAL| JUNE 14 - 16
- 18. Supplier Data Model Together Towards Tomorrow INTERACT 21 VIRTUAL| JUNE 14 - 16
- 19. Spend Optimization No PO/No Pay “No PO, No Pay” is now a widespread purchasing policy, requiring a Purchase Order (PO) for all goods and services ordered from external suppliers. Eliminate maverick spend, complete audit trail, compliance Together Towards Tomorrow INTERACT 21 VIRTUAL| JUNE 14 - 16 Challenge for 100% PO Match – Pharmacy, Utilities, Credit Card, Reoccurring Expenses
- 20. Spend Optimization Together Towards Tomorrow INTERACT 21 VIRTUAL| JUNE 14 - 16 • Leverage Req to PO to Receiving to AP process as much as possible • Requisitions • Punchout - Office Supplies, Amazon, Grainger • Smart forms • Configure BPAs for all items • Public Shopping Lists • Define approvals thresholds on requisitions, purchase orders, and invoice • Communicate to vendor electronically • CMK / EDI / Oracle Business Network to communicate • Supplier Portal • ATF Purchase Orders • Opportunities for touchless purchasing • Master Data Management • Map UNSPSC to Categories to Natural Accounts • Manage Items and Contracts with Blanket Purchase Agreements • New 21C External Purchase Prices new functionality
- 21. Spend Optimization Together Towards Tomorrow INTERACT 21 VIRTUAL| JUNE 14 - 16 Cart Purchase Requisition Purchase Order Receiving Invoice Entry Matching Payment Status Shopping • Hosted Catalog • Punchout Catalog • Forms & Spec. Request • Enabled Contracts PR Creator • Enters accounts, chart field and shipping. Approval(s) • Dept $ • Optional EH&S, IT, Other • . Purchasing • Review Non-Catalog items • High Dollar • Contracts Central Rec. • Unpacking • Quality Checking Delivery • Desktop delivery to requestor Invoice • PO Invoice • Non-PO Invoice • Direct Voucher Approval • Non-PO Invoice Dept $ approval 3-way Match Supplier • Receives PO • Acknowledges • Fulfills Goods / Services Payment • Voucher payment • Check or ACH to Supplier
- 22. Spend Optimization Together Towards Tomorrow INTERACT 21 VIRTUAL| JUNE 14 - 16 Considerations • Drive compliance and incremental baby steps to No PO / No Pay. Target a requester group or vendor where there is a challenge and see how best to align it with req, to po, receipt to ap. • Incremental steps go and increases in compliance can go a long way • Integrations to help with auto-receiving and invoicing when necessary • Reporting on spend and categorization • Minimize risks • Compliance • Transition your procurement team from reactive to proactive
- 23. Together Towards Tomorrow INTERACT 21 VIRTUAL| JUNE 14 - 16 Devices Review use case and gain feedback from users and vendors to get best device Honeywell CT60 TC51 Accessories Bases Extra batteries Protection Warranties Wireless network assessment MDM strategy Barcode Label Software Label printers Handhelds
- 24. Together Towards Tomorrow INTERACT 21 VIRTUAL| JUNE 14 - 16 Transactions Par Counting Receiving Inventory Issues, Movements, Returns Picking and Delivery Cycle Counting Physical Inventory Point of Use Dock Logging Signature Capture Automated Printing Handhelds
- 25. Break Together Towards Tomorrow INTERACT 21 VIRTUAL| JUNE 14 - 16
- 26. Inventory Cost Reduction Together Towards Tomorrow INTERACT 21 VIRTUAL| JUNE 14 - 16 Reasons • Inventory ties up cash • Reduce physical clutter • Streamline business processes • Converting on-hand / inactive old items Goals • Leverage systems and automation • Process Identify and process obsolete
- 27. Inventory Cost Reduction Together Towards Tomorrow INTERACT 21 VIRTUAL| JUNE 14 - 16 Strategies to consider on Oracle Cloud • Planning methodology, min-max, PAR, Kan-ban go from None/Reactive to Proactive! • Move High Dollar Expense Areas to Perpetuals Cath, OR, and Lab – Mobile and EMR Integrations to help facilitate ins and outs of these areas • Review department spend records • Identify consignment opportunities with Vendors • Identify slow movers
- 28. Inventory Cost Reduction Together Towards Tomorrow INTERACT 21 VIRTUAL| JUNE 14 - 16 Identify slow movers / obsolete products • Can you use it elsewhere? • Can you sell back to the supplier? • Can you donate?
- 29. Distribution Together Towards Tomorrow INTERACT 21 VIRTUAL| JUNE 14 - 16 Identify inefficiencies Review call downs, frequency, timing, products and departments Missed picks, frequency, timing, cases, products Missing inventories Does your distribution delivery model need to change? Off-site warehouse Central supply / general store Internal Sourcing Requesters COVID impact – supplier allocations Leverage pars and templates - shopping LUM Kan-Ban Min-Max Integrations
- 30. Distribution Integrations Together Towards Tomorrow INTERACT 21 VIRTUAL| JUNE 14 - 16 Inventory Integrated Solutions Omni-cell Pyxsis Par Excellence Helios BlueBin DeRoyal OSCAR Supply Scan Tissue Manager Cerner Epic All-Scripts
- 31. Planning Optimization Together Towards Tomorrow INTERACT 21 VIRTUAL| JUNE 14 - 16 • Manual Steps • Paper • Physical and visual • Minimal Manual Steps • Paper / Electronic • Not evaluating levels • Reactive / Proactive • Analysis driven indicators • Evaluating Min/Max & Par Levels • Approval • Some Automation • Electronic • Auto-replenishment orders (IMTs or POs) • Monitoring levels • Seasonal event changes • Analysis driven indicators • Evaluating Min/Max & Par Levels • Approval • Automation None /Reactive Reactive Reactive / Proactive Proactive
- 32. Break Together Towards Tomorrow INTERACT 21 VIRTUAL| JUNE 14 - 16
- 33. Workflows Together Towards Tomorrow INTERACT 21 VIRTUAL| JUNE 14 - 16 Oracle BPM Worklist Lots of notification and emails • FYI • Approvals Approvals Rules Engine Leverage HR Data and Finance Cost Center Manager Approval Supervisor Hierarchy Discrepancies Receipts Prices Review over 60 day aged
- 34. Reporting Together Towards Tomorrow INTERACT 21 VIRTUAL| JUNE 14 - 16 3 4 Tactics Metric Baseline Target Impact Increase use of electronic PO’s EDI /auto fax utilization 80% Ensure accuracy with the item master file Item master number utilization 80% Close PO's in a timely fashion Close PO's > 60 days < 5% Reduce excess stock on hand Storeroom Inventory Turns 10.5 Turns Track supply expense as a % of net revenue Supply Expense as a % of Net Revenue Finance Supply Chain Efficiency - KPIs Tactics Metric Baseline Target Impact Response time of requisitions generating POs Date of purchase order - date of requisition received 1 Day Number of POs placed per FTE per month Number of POs placed per FTE per Month SCM % of POs linked to an MMIS contract POs issued with an MMIS contract utilization 80% Internal order fill rates PO lines issued from general stores utilization 98% Stock outs Inventory requests where there was 0 on hand utilization < 2%/SCM Supply Chain Efficiency – Other Metrics
- 35. • Session Surveys • Click on the session in your schedule • Click "Session Feedback” • General Feedback • Homescreen Together Towards Tomorrow INTERACT 21 VIRTUAL| JUNE 14 - 16
- 36. Questions? Or send to [email protected] Together Towards Tomorrow INTERACT 21 VIRTUAL| JUNE 14 - 16
- 37. Q&A | Next Steps | Contacts | Resources Lee Spitzer Director, Supply Chain [email protected] Together Towards Tomorrow INTERACT 21 VIRTUAL| JUNE 14 - 16 [email protected] Email us questions. https://www.alithya.com/en/technology- partners/oracle-solutions Visit our Oracle Solutions page https://www.alithya.com/en/insights Read our blog posts. https://www.youtube.com/alithya_inc View our webinar recordings.