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PRODUCTS & SERVICES


refrigerated trucks and/or generators (in case of power failure). And supply chain management must assess and balance the need for these types of essentials against “overstock” concerns. DIFUCCI: Prepping for crisis/disaster must occur long before a crisis or disaster is seen coming. High-volume suppliers and supply lanes must be analyzed for alternate routes and or modes. DC contingency plans consisting of alternate order flow, staffing and power must be finalized and communicated. Finally, all outbound lanes are analyzed and alternate routes or final destination sorts must be planned. ZAMSKY: It is imperative as a supply chain professional that you disburse your inventory. Keeping all your medications and life-saving equipment in one location could prove to be a major problem. Should something happen to the on-site storage or distribution location, the well-being of in- dividuals who depend upon those medica- tions could be in jeopardy. This is why it is important to consider multiple distribution centers and diversify the risk. For example, consider the recent torna- does that struck Oklahoma. Even hospitals were not immune to the might of this storm. Avoiding a concentration of supplies can eliminate pain points in a crisis. Whether stored at another network hospital or kept in a fail-safe distribution center, supply chain professionals must ensure access to additional inventories in times of crisis. Along with secondary distribution cen-


ters, supply chain professionals should consider how they receive supplies. The pharmaceutical suppliers from which healthcare organizations receive their medi- cations are increasingly turning to third- party logistics (3PL) providers to stock and transport critical supplies. Thus, healthcare supply chain professionals must consider the full scope of the supply chain and think beyond their own operations — selecting the right suppliers and 3PLs. My advice is to look at one which owns and operates its own assets, such as vehicles, planes, trucks, etc., and demonstrates a resilient supply chain infrastructure of its own.


What eye-opening lessons did you learn from your organization’s reaction to the crisis/disaster you faced that you recom- mend to facilities? O’CONNOR: Superstorm Sandy confirmed our long-standing position that GPOs are integral partners for hospitals and health- care organizations before, during, and after


a crisis. When Sandy hit the New York City region in late October 2012, representatives from the GNYHA Ventures companies (GNYHA Services, Nexera, Innovatix and Essensa) and our parent organization, the Greater New York Hospital Association (GNYHA), served on location at the New York City Office of Emergency Manage- ment (OEM), helping hospitals and nursing homes identify available beds, receive food deliveries, and source generators, cables and fuel. We also implemented an emergen- cy staffing model in our corporate offices to ensure that staff would be available to field concerns and requests from our members throughout the impacted areas and around the country. To that end, supply chain personnel should familiarize themselves with their GPO’s emergency protocol and contacts and include relevant GPO contact information in the facility-wide emergency master contact list. DIFUCCI: Communication with local au- thorities and knowledge of road closures, area quarantines, customer openings and closings is important. Often times, medical supplies are able to get to areas where other goods are not allowed. ZAMSKY: Disasters have a domino effect, so it is critical that the preparations occur at many different levels within the business. This includes ensuring that the business think beyond the disaster and understand the impact of this crisis/ disaster to its bottom line.


The reality is that businesses may not


be fully prepared for the financial impact of a “what-if” disaster. This is because the implications are so broad and many are unforeseen. But having a formally docu- mented process in place and leveraging risk management specialists, such as an insurance company that understands the multiple levels of risk within the supply chain, can prove to be beneficial. Insurance companies have a vested interest in mini- mizing losses so they can be key partners in working with a business to minimize losses when a crisis situation occurs. Here’s a brief example: If the crisis re-


quired that a temperature-sensitive drug reach the disaster within a certain time frame and it did not, many insurance poli- cies would not cover the loss of this drug. The business would be out-of-pocket for the cost. Today, however, there are specialty insurance programs that can protect perish- able goods that are time- and temperature-


sensitive and, if the delivery is not made, the company is covered for the loss. This is why the widespread implications of properly planning for a disaster are so critical; and that these types of risk-mitigation details be built into disaster recovery plans.


Given that floods can engulf basements and ground floors, and hurricanes and tor- nadoes can destroy them in higher eleva- tions where do you recommend housing portable or stationary backup generators? Is protective shielding even possible? O’CONNOR: There is no perfect answer to this question — the ideal location of generators depends on the weather risks most prevalent in your area, as well as your physical plant. Depending on the type of risk you face, the building’s basement or the very top level may not necessarily be the best options. If feasible, you should consider the possibility of storing multiple generators in different locations. The one universal truth about generators is to create a response plan around them. Testing backup generators on a regular basis and in the immediate days before a storm is predicted to hit is critical. Sandy taught the New York community that it’s not just about having a working generator; you must have a plan in place to fuel those generators when elevators and usual means of transport are no longer available — and to fuel generators for multiple days follow- ing the emergency while power grids are being repaired. DIFUCCI: We believe generators are key to keeping the supply chain operating smoothly, especially the technology and data flow aspect. Housing the main IT facility with a generator above ground four feet higher we deem is sufficient, especially if the facility is not in the pri- mary flood zone. Finally,


a redundant facility in a different [area] is ideal for any disaster planning if the com- pany has enough capital for the investment.


During a crisis/disaster that extends community-wide, how do you keep supply lines flowing if traditional vehicular traffic is blocked and fuel runs low? O’CONNOR: Sandy brought such destruc- tion to certain neighborhoods that vehicle access was challenging, if not impossible. Closed ports of entry temporarily stopped the delivery of desperately needed fuel


See PRODUCTS & SERVICES on page 56 www.hpnonline.com • HEALTHCARE PURCHASING NEWS • March 2014 55


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