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Effective Material Management Strategies During Times of Change

Colorado Ambulatory Surgery Center Association’s Annual Spring Conference: Our Patients Come First. Effective Material Management Strategies During Times of Change. Where to look What to look for. Salary and benefits Fixed assets Supplies purchases Capital purchases Service agreements.

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Effective Material Management Strategies During Times of Change

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  1. Colorado Ambulatory Surgery Center Association’s Annual Spring Conference: Our Patients Come First Effective Material Management Strategies During Times of Change

  2. Where to look What to look for • Salary and benefits • Fixed assets • Supplies purchases • Capital purchases • Service agreements

  3. Supply Purchases • You are the hunted – not the hunter • “The seller has a thousand eyes, the buyer has two”

  4. Decision making process • Keep it professional • Emotional decisions tend to be in suppliers favor • “Friends” are earning money too • Do not settle on the brand and type until you have all the information • If you have decided, do not reveal that • Play poker – make sure docs and staff know

  5. Standardization is KING • Start with low hanging fruit • Consolidate suppliers • Involve nurses and surgeons • “Negotiate” with suppliers – it’s not retail • Be prepared to give a little to get more

  6. Complacency is unacceptable • Audit invoice periodically • Re-bid core items every 3-5 years • Seek new sources of information and learn • Ask for help • Local peers • Other sales reps • Corporate management • GPO

  7. Capital Purchases • A few extra points of discount adds up fast • Gather timely and appropriate data • Do not over buy the needs of the business

  8. Replacing existing equipment • Do you know all that is available? • Do you really need all the bells and whistles? • How does it interface with other equipment • Do current mechanicals match the needs • Electric, water supply, drainage, structural

  9. Refurbished versus New • Know the refurbished company well • Have written description of what “refurbished” means to that company • Know the full extent of warranty

  10. New Equipment • Freight must be FOB destination • Are trade-in’s offered • Can you re-sell for more cash • What is done with the trade-in’s • Know what the going discounts are • Regionally and nationally • Buy what is needed, not what is being pushed

  11. Service Agreements • A huge cost to all providers • There are organizations that can encompass multiple pieces of equipment • Capital equipment • Extended warranties are the manufacturer’s gold mine – a major profit center

  12. Freight • In bound freight is a fright! • All distributors should include this in the price • Manufacturer’s have another profit center with freight, especially when shipping FedEx or UPS • The cost is yours, so take control

  13. Technology Solutions • So many to choose from • Billing/coding – daily changes • Recovery of past due • Item master and charge master • Cost per procedure and/or key procedure indicators

  14. Thank YouMark D. EgglestonV.P.National Accounts and Non-Acute CareAmerinetmark.eggleston@amerinet-gpo.com612-325-5983

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