Healthcare providers are under tremendous pressure to find cost savings and efficiencies while maintaining optimal patient care. Logistics management has untapped potential to deliver value across the continuum of care.
Becker's Hospital Review recently spoke with Emily Gallo, senior vice president and general manager of OptiFreight® Logistics, a Cardinal Health business, about the value providers can find by optimizing logistics.
Note: Responses have been edited for length and clarity.
Question: How are staffing shortages impacting healthcare logistics and what solutions should healthcare providers consider?
Emily Gallo: Supply chain teams within healthcare facilities are strapped for resources and time, while dealing with pressures including global supply chain disruptions. These pressures can impact a provider's ability to treat patients — and negatively impact revenue. The problem is that teams don't have time to take a critical look at their supply chains to uncover savings.
Utilizing an automated platform to analyze your logistics strategy and collect key data is a good first step to drive supply chain efficiency. However, it's not enough. Supply chain teams need a partner who can analyze this data and calibrate an optimized logistics management strategy. Because of where a third party like OptiFreight® Logistics sits — and the customer data we collect — we become an extension of our customers' teams and bring savings opportunities to the table.
Technology can't replace having a partner to look at shipping spend and provide suggestions on what shipping methods and timing are optimal. This is the true definition of "total healthcare logistics." Managing logistics from this lens is critical to an efficient, optimized supply chain.
Q: As healthcare's digital transformation journey continues, what does innovation look like for logistics management?
EG: OptiFreight® Logistics is taking a new approach to innovation to transform our business – a transformation that’s rooted in utilizing emerging technology to scale solutions faster for customers' needs, bring more flexibility in shipment and carrier options, and address growing needs in tracking, visibility and shipment intervention.
Within this transformation, we innovate with an agile mentality. We engage customers to pilot solutions to ensure these solutions address what is needed. It's easy to innovate in a silo, but teaming up with customers to understand and address their true pain points increases impact and success.
Q: What excites you the most about the evolution of healthcare logistics — where do you see the greatest potential?
EG: There's a lot to be excited about. Oversight into all areas of shipping spend — inbound and outbound small parcel, large freight, same-day shipments across every department or location — offers massive potential and is critical to ensure program compliance and savings optimization. Largely due to staffing constraints and lack of automation, it is difficult for healthcare providers to understand where their gaps are and where they can be more efficient. Working alongside customers to help them evolve from freight management to total transportation management excites me most.
The key to ensuring continual progression is conducting regular logistics assessments. Proactive supplier management is one area that provides surprising value. We recently completed a supplier assessment for a large IDN that identified opportunities to increase supplier utilization on small parcel shipments by 43 percent, which is estimated to produce more than $840,000 in annual customer savings.* The project shows the exact value – down to the dollar amount – in having a logistics management partner that works as an extension of a provider's team.
Q: What are the most critical advancements needed in the healthcare logistics industry?
EG: The first is advancing visibility and tracking. We are building tailored capabilities that give our customers timely visibility to shipments from point-of-manufacture to point-of-care in one tool. Customers will be able to proactively engage clinical stakeholders as they identify at-risk or delayed shipments and take action to quickly remedy those situations. This is a critical advancement.
Additionally, every supply chain link needs to be better informed by data and analytics. Healthcare providers don't just need a centralized place for logistics data – they need direction on what action to take based on insights uncovered.
Q: What should healthcare providers look for when searching for a logistics management partner?
EG: Healthcare providers need a comprehensive program to unlock value. When selecting a partner, consider more than just small parcel shipments. A true total logistics management partner offers a wide range of solutions: small parcel, courier, large freight, inbound and outbound shipping and more. Also, look at the needs of other departments, like lab or pharmacy. The more shipments you're managing, the more savings you'll realize.
And, don't underestimate the human component. While there are programs that solely leverage technology, avoid a “set it and forget it” approach. Work with a partner who is truly an extension of your team to drive swift and continuous value.
Summary
OptiFreight® Logistics helps customers gain greater control through our team of committed experts, tailored solutions and continuous innovation and insights. With greater control comes greater confidence to meet critical goals of optimizing shipping costs and improving efficiencies within your healthcare organization — today and in the future.
To learn more about OptiFreight® Logistics, click here.
Join our webinar to learn how CommonSpirit Health and OptiFreight® Logistics are challenging the status quo to prepare for the future on May 10 at 12pm CT. Register today.
*Based on 2021-2022 OptiFreight® Logistics customer data.