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When Intermountain Healthcare had problems with stockouts for crucial surgical supplies, it turned to its supplier, the Johnson & Johnson Medical Devices Companies (JJMDC), for help. JJMDC deployed a specialized supply chain team to help the health system diagnose what the problem was and discover a solution. 'We've got a stockout.' When it comes to crucial surgical products and medical devices, those are words that no hospital administrator, clinician, or supply chain professional ever wants to hear.
Unfortunately for Intermountain Healthcare, a not-for-profit health care system of 23 hospitals in Utah and Idaho in the United States, it was hearing those words far too frequently for certain surgical products from the Johnson & Johnson Medical Devices Companies (JJMDC). 'Traditionally, our solution was to increase our safety stock and carry more inventory,' explained Heber Everitt, demand planning manager at Intermountain Healthcare. 'But that strategy was no longer working and was impacting overall efficiency.' Intermountain, which serves thousands of patients annually, wanted to act quickly to restore confidence among its supply chain and surgical personnel in the supply chain integrity of JJMDC products.
To solve the problem, Intermountain approached JJMDC about how the two organizations could collaborate to identify process improvements that would reduce stockouts and improve customer service while also making the supply chain more efficient. Intermountain wanted the effort to focus specifically on Ethicon Inc. Both organizations knew that delivering high-quality, efficient health care requires significant supply chain expertise. Afterall, understanding demand within a health system's supply chain can be a complex challenge requiring sophisticated and accurate data, as well as trust and transparency between many parties, including suppliers, distributors, and clinicians. To help diagnose and solve the complex problems that were causing stockouts of Ethicon sutures, the JJMDC team leveraged CareAdvantage from the Johnson & Johnson Medical Devices Companies—a holistic approach to help health care systems realize better care by aligning JJMDC's broad capabilities to customers' individual needs. It seeks to support a hospital system's goals of delivering 'whole health' by reducing costs, improving outcomes, advancing patient satisfaction,and developing a healthier workforce.
Leveraging CareAdvantage, the JJMDC team starts by talking with the customer to understand its specific objectives, priorities, and challenges. The team then combines these insights with deeper, data-driven analyses to identify opportunities to make the most impact. A rigorous onsite assessment validates these findings to deliver a focused action plan with targeted metrics linked to each of the health system's goals. Solving starts with listening A fundamental component of CareAdvantage is the belief that solving starts with listening. With that as a focus, a key first step for the JJMDC team was to fully understand the challenges that Intermountain was facing and how it was currently managing its suture inventory. Together, JJMDC and Intermountain conducted a series of fact-finding meetings with the clinical supply chain specialists at the hospitals in order to understand pain points that interrupted supply flow.
These fact-finding meetings are a best practice that Intermountain had already been using to assess its own supply chain efficiency. The JJMDC team spent time onsite within the health system to study product flow, map processes, and quantify system-level supply dynamics. During the joint-planning meetings, both organizations recognized room for improvement in their own processes, including taking a more proactive approach to data gathering and improving transparency and communication. To help them work toward better aligning their processes and systems, the two companies used the Gartner Five-Stage Demand-Driven Maturity Model as a roadmap. The Gartner model helps companies to identify the current maturity level of their supply chain organizationand provides a standard series of steps for improving their supply chain sophistication.