Johnson & Johnson (NYSE:JNJ) today touted its CareAdvantage supply chain services, saying it helped Spectrum Health and its 12-hospital system cut weekly out-of-stock devices by nearly 50%, reduced expedited shipping fees and the number of days products are out of stock.
“We engaged JJMDC to help us improve efficiencies and standardize processes within our distribution center for their products. Our efforts thus far have resulted in significant improvements for Spectrum Health, our clinical teams, and the patients we serve, and we now consider the work we’ve done together as a new standard for continuous improvement moving forward,” Spectrum Health system supply chain VP Kurt Knoth said in a prepared statement.
To achieve the reductions, Johnson & Johnson Medical Devices Company experts analyzed data from both Spectrum Health and its own supply chain and identified “critical interdependencies between performance metrics and ordering behaviors,” the company said.
Insights from this analysis were compared against a benchmark of similarly sized healthcare systems, J&J said, and once gaps were identified, both companies worked together to set performance goals and use the data across the health system to improve processes and increase device availability.
When compared to baseline measurements, Spectrum Health reduced weekly product codes out of stock by 49% and reduced expedited order fees by 96%. The average days the system was out of stock of devices was reduced by 18%, the company said.
“We are dedicated to listening to the needs of our customers and helping them solve their supply chain challenges by utilizing our unique combination of clinical expertise for our devices and supply chain insights. Our approach focuses on not only creating efficiencies and reducing costs, but also driving a more patient-focused supply chain between JJMDC and our health system customers that helps reduce delays and disruptions in patient care. Our Supply Chain Optimization capability helps put the right supplies where they’re needed and when they’re needed, putting clinicians back where they are needed most: caring for patients,” JJMDC customer marketing & solutions VP Melinda Thiel said in a press release.
J&J launched the CareAdvantage service in January, touting it as a “holistic, data-driven approach, grounded in insights” which aims to help companies shift to alternative payment models tied to quality or value.