Supply chain tip of the week: How to put your supply chain on a 'diet'

When dieting, individuals must consider not only how much they eat, but also what type of food they should consume to shed pounds. Similarly, when health systems attempt to reduce supply chain costs, they should consider both the volume of supplies and the product mix.

Matt Shimshock, Premier's director of product management for enterprise resource planning and supply chain technology solutions, recommends health systems use analytics and data benchmarks to identify cost savings from supply utilization across the continuum of care.

Price is important, but volume and product mix have the greatest potential to influence cost. For example, using surgeon gloves when sterile exam gloves are just as acceptable can add thirty cents or more to every episode of use. Over time, this variation can add up to significant dollars for a health system.

If you would like to submit a supply chain tip, please email Mackenzie Bean at

More articles on supply chain:

Opinion: 4 reasons drug prices will continue to rise in 2017
FDA grants accelerated approval to Clovis' ovarian cancer drug
NICE, FDA collaborate to speed up time between device approvals and coverage

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