For many hospitals and health systems making the transition to value-based care, the supply chain continues to be a strategic area of focus to identify opportunities for managing costs while improving the quality of care. Michigan-based Spectrum Health realized considerable improvements across its twelve-hospital system with help from CareAdvantage, from the Johnson & Johnson Medical Devices Companies (JJMDC) and its Supply Chain Optimization capability.

JJMDC have helped Spectrum Health cut the weekly number of out-of-stock devices by half, nearly eliminated expedited shipping fees, and reduced the average number of days that products are out of stock. Together with the Spectrum Health team, experts from JJMDC analyzed data from across the Spectrum Health and JJMDC supply chain, identified the critical interdependencies between performance metrics and ordering behaviors, and provided insights on supply chain performance compared against a benchmark of similarly sized health systems.

Spectrum Health achieved considerable improvements across all targeted goals. Compared to baseline measures, Spectrum Health reduced weekly product codes out of stock by 49 percent, reduced expedited order fees by 96 percent, and average days out of stock by 18 percent.

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