Step 1. Leverage Technology
- Build your system foundation and capabilities.
- Deploy a materials management information system.
- Use a healthcare-specific design for a continuum-of-care and for procurement, pricing, item management, reporting and analytics.
Step 2. Create Electronic Purchase Orders
- Use a purchase order for everything.
- Capture spend, build visibility and improve purchase reporting.
- Include all medical-surgical units, capital, maintenance and service agreements.
- Exclude utility costs and expenses for travel and entertainment.
Step 3. Build an Approved Formulary
- Gain control of purchasing for centralized or multifacility ordering.
- Create an approved, standardized product formulary.
- Benefit from better contract negotiations, higher quality, spend and product consistency, order and spend visibility, and a streamlined user experience.
Step 4. Leverage Data for Automation
- Maximize contract performance by ensuring the right price and right contract.
- Manage all spend through purchase orders to align with available contracts.
- Target the highest possible electronic data interchange for enhanced automation.
- Use data and reporting tools for better visibility into procurement, and create a purchase order “food chain.”
Step 5. Create a Purchase Order Process
- Give users the proper security, roles and responsibilities.
- Create a process to make and approve changes to purchase orders.
Step 6. Build Classification Coding
- Establish general ledger classification coding.
- Access rich spend data by classifying spend by budget codes.
Step 7. Track Returns
- Create a return purchase order.
- Track return of the item to the supplier and ensure the appropriate credit.
Measure vendor performance by tracking on-time shipment rates, backorder and fill rates, and data capabilities.