• Finally, you can’t manage your freight unless you have full visibility to what you’re spending. Analytics will help you gain access to a high level of transpar- ency that can help provide insights to inform better decisions in the future.

Tracy Leatherman, Vice President, Sales, TRIOSE Inc. Overt areas (readily apparent) • Prepay and add-freight expense. At a high level this is a good indicator. If a health system’s volume of patients and services has not increased, but their vendors prepay and add shipping costs have increased dramatically, you should take a closer look at what could be driving those costs.

Covert areas (hidden) • Shipping that is bundled in the cost of the product. Just because you can’t see it doesn’t mean it doesn’t exist.

• Priority Services charged prepay and add by your vendor. Most invoices with prepay and add-freight costs provide little-to-no information on the particu- lars of that shipment and how it was shipped. How do you know if priority and next-day air services are being overused if you can’t identify how frequently it happens? Reducing use of priority services levels can save upwards of 65 percent on a single shipment.

• Claims are another area where costs are not readily tracked by the health system. When packages are lost or damaged, who manages the process to

ensure that the claim paperwork is filed on time and ensures that claims get settled? Unless you have a third party managing this function, it is likely that the health system doesn’t know what costs are getting recouped versus the ones that aren’t.

Christopher DiBernardi, Director, Business & Product Development Healthcare, Ryder Three of the most overt areas are on-time delivery, empty miles, and customer service levels. The most covert to find are driver turnover, missed deliveries and poor routes.

Michelle Robbins, Vice President of Product Management, Life Sciences & Healthcare, DHL Supply Chain Overt: When it comes to managing freight the overt areas I would watch are my distribution fees across modalities, such as am I bringing in a pharmaceutical through my med/surg channels and now are paying cost-plus instead of cost-minus, have I looked to pairing with a pure-play logistics carrier, the use of overnight and other specialty modes and lastly my internal processes to ensure I have line-of-site to my actual freight costs. All of these are ways the hospital can easily take charge and manage their freight spend and reduce costs. Covert: The more covert areas are more difficult for a hospital to manage and take effort, processes

and sometimes systems to manage, and that’s why most health systems either accept them as they are and they often go unchanged. First, look outside of the typical Supply Chain scope, including engineering, food, marketing, etc. Next, look into the capital pur- chasing program as most health systems just accept the vendors shipping methods for large capital items when there could be large savings in challenging. Lastly, if I was using a transportation management company or distributor/wholesaler, learn whether you are matching your vendor contract shipping methods, mode and price or just accepting that these other companies are providing you best price. Additionally, look at hard at things like fuel surcharge for over the road, insurance per load — particularly important for high-value products — and less-than-truckload (LTL) rate components in combination, class, discount, and minimum charge.

Jake Crampton, Founder and CEO, MedSpeed LLC We see the biggest underlying areas to watch as being hidden/embedded costs, over utilization of service (using more than is truly needed) and utility (not getting the most out of the transportation that is being used).

Visit PS-sidebars.html for additional contributors.


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64