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Controlling Costs / Improving Delivery

HHS SUPPLY SERVICE CENTER. Controlling Costs / Improving Delivery. HHS Supply Service Center. Our Goal... The Perfect Order. Has the right amount of the right products Is damage free Arrives on-time Arrives at the correct location Is filled completely on the first call

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Controlling Costs / Improving Delivery

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  1. HHS SUPPLY SERVICE CENTER Controlling Costs / Improving Delivery

  2. HHS Supply Service Center Our Goal... The Perfect Order • Has the right amount of the right products • Is damage free • Arrives on-time • Arrives at the correct location • Is filled completely on the first call • Is entered correctly • Is communicated via a customer-specified medium • Has no invoicing/collection errors

  3. HHS Supply Service Center Communication is THE Key Pacific Islands • Order from Pre-defined Formulary • Develop Comfortable Safety Stock Levels • Routine Orders • Prompt Payment

  4. HHS Supply Service Center Formulary Development Reasons • Issues of Safety, Effectiveness, and overall Value - SSC has staff pharmacist on staff for help • Product Availability • Cost Savings • Supply Chain Speed Problems with Non-Stock Items • Sometimes Difficult to Procure • Dating Issues • Require Multiple Small Shipments • - high transportation costs

  5. Formulary Advantages Cost Issues No Price Changes Minimize Pricing - Quantity Discounts - Repackaged Items Optimization of Transportation Costs - Maximization of Ocean Freight - Minimization of Air Freight - Minimize Minimum Charges (Customs Fees, Hazard Fees) Minimize Labor Required to Correct Issues

  6. HHS Supply Service Center Satellite Warehouse Reasons • Gain Shipping Efficiencies - Negotiate favorable tenders - Minimize emergency shipments • Emergency Product Availability • Decrease Response Time • Cost Savings (buy larger quantities) Requirements • Formulary • Minimize Non-Stock Items Requirements • Utilize SSC Information Systems • PIHOA Endorsement is a Critical First Step Product Pricing is Important – Transportation Optimization MORE Important!!!

  7. HHS Supply Service Center Satellite Warehouse Can a satellite warehouse support itself? • Most shipments now go Air Freight • Ocean freight is an appropriate response • What cost savings can be achieved? • Can these cost savings cover potential 3PL expenses? Variables to Address • Formulary Volumetrics and Velocity • 3PL Storage and Transaction Costs

  8. HHS Supply Service Center POINTS OF CONTACT

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