Operations Review on Supply Chain Management, Logistics, and Inventory

Operations Review on Waste Reduction, be Reduction and Process This memo will debate the efficient ways that release range of a function Management, Inventory, and Logistics pay back been victoryfully implemented in the Intermountain Healthc be tack Chain Center. Peggy Lee, Card Program Manager at IHC led the tour in the Supply Chain Center. The goal of IHC dispersal center is reduce waste, woo and centralized the senior high volume supplies in one(a) location and distribute across each(prenominal) their facilities. This gives Intermountain bankrupt maintain of their inventories and negotiation advantages.Using these methods has had a great tinge in waste reduction, quality and cost savings. Supply Chain infrastructure is an important process at Intermountain Healthcare (IHC). They have learned that building rugged relationships with their suppliers is critical and evoke help eliminate cost as well as allow them to per centum their savings. How IHC has achieved thi s, is by supplier involvement. IHC provides a mockup room specifically designed for their suppliers to show off red-hot products and equipment allowing doctors and clinicians to probe the equipment at a no cost to the supplier.Suppliers thus receive immediate feedback on their products and the hospital can test products before purchase. This is a valuable fixate out for IHC to see results, make improvements, and negotiate effective distribution for both the supplier and the hospitals. This is gain for both start outies, and in particular to Intermountain since supplies are one of the highest expenses they incur. The distribution celerity was built with the purpose to manage inventories more efficiently.This celerity only holds 6,000 items out of 81,000 products that can be articulateed. only when those items that are ho utilized in this quickness are the high volume items, with a fill rate of 98% and accuracy of 99%. IHC has a great control on their inventories by assur ing that cost of obsolescence, deterioration, and damage are managed properly. The warehouse is equipped with big fans that sack the air around the quickness reduce temperature fluctuations allows slight than a 4 deference from top to come home in the warehouse.This prolongs the longevity of the products they house by bring down deterioration. Also, all the shelves are set up on a slope allowing erstwhile(a) inventory to crack to the front. This is also receiptn as the FIFO method, which ensures the older products are non aging on the shelves. other method they use is barcoding. Barcoding is not a bleak invention, but IHC has taken advantage of this technology in the way they fill their internal orders by implementing virtually of their own inventory establishment, VoicePic.VoicePic is a voice actuate inventory process where barcodes are buttd on the container that will carry the order from one place to another around their facility. As the container moves along the conveyor belt belt, the person with that order hears the amount of items to be split uped up in the current position and repeats the number via his voice. other quality check used for their inventory system of rules is that once the level is placed in the container the system knows the weight that is to be at the end of the order. This provides a quality control measure.If the weight is correct indeed process continues. If the weight is off, the order gets rejected. This lets the operator know that there is an item that does not belong. By corporate trust these two systems in their inventory, IHC has plusd their accuracy in their orders by 60%. Logistics is another important part of IHCs business processes they are trying to refine. The facility was strategically placed in a centralized location to allow moving supplies to all of their facilities since 80% are within a 50-mile radius.They also use their own fleet to distribute their merchandise among the hospitals and clinics, with the censure of the southern part of the state of Utah. The reason for this is they sooner use a trafficker for this location since the vendor is able to return with a full trailer. This would not be the case for IHC. Another important header in the way their logistics is setup is how they receive and pick up shipments. These activities have a time set when they can be performed.They have divided morning time to receive delivery from 4am to 12pm all deliveries are through with(p) on a schedule, as well as pickups, pick up activities begin at 12pm. This is to improver efficiency of the location and the use of resources, thus trim the chance of error and process flows. In addition, order placement is another key process. All IHC facilities must(prenominal) have their entire orders placed by 1100 am every day to ensure order fulfillment. One other advantage at the fork up string facility is that it is built to allow shipments to be cross-docking.So, instead of products b eing housed they are immediately move to another truck to deliver to the final destination. Logistics processes in this facility are designed to make resources more efficient and allow them to eliminate costs. IHC has increased their success by implementing new strategies on supply chain management, logistics and inventory. They have been able to cut costs and increase efficiencies in inventory on internal orders. on with inventory, IHC has an added savings by testing for effectiveness of new products when negotiating with suppliers in the mock up room.By having this kind of fundamental interaction with supplies, ensures that the products will meet their needs and will can to their efficiency. They have also modified their logistics by reducing the number of trips needed to facilities by consolidating all the orders, to assault all necessary supplies in one trip. These are some of the many operational activities implemented in this facility. IHC has identified areas for improvem ent and made the necessary changes. With all the new improvements within their supply chain center, the facility will pay itself off in 8 years.