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Mission/Vision

HIRC’s mission/vision is a more transparent and resilient supply chain.  Measuring resiliency through KPI is one method of reinforcing resiliency in trading relationships.

    Contributors

    We need both leading and lagging indicators to illuminate where resiliency is headed as an industry and how we can measure success.  

    GHX (Global Healthcare Exchange) is a key contributor to this effort.

      Desire

      Member voice and HIRC Board affirm the value of resiliency KPI in protecting continuity of patient care through assessment of fulfillment performance, for example.

      Measures

      Current

      • National monthly fill rate trend
      • MoM category fill rate trend

      Additional opportunities include: breakdown by major product categories and benchmarking.

      Model

      The model promotes conversation and provides measurement conducive to a more resilient supply chain.  Provider and supplier members, and industry partners will guide development and rollout.

      Next

      HIRC will lead/champion development of an industry resiliency measure in the form of KPI suitable as an industry reference in collaboration with industry partners.


      Patient Impact

      Supply chain disruptions have negative impact on patient care.  Resiliency is one measure of resistance to, and ability to recovery from, supply chain disruption.  KPI can inform resiliency.

        Lack of standard

        An industry standard for resiliency KPI has not been adopted, nor is it accessible for benchmarking and industry tracking purposes.

          Lack of measurement

          While AHRMM has posted guidance for retrospective resiliency measures, a healthcare technology partner has not yet calculated and posted these measures.  

          Without an accessible and reliable KPI, we cannot track resiliency maturation as an industry nor benchmark individual performance.

          Lack of partner (resolved)

          A suitable partner is needed alongside stakeholder voice to shape this effort as an industry.


          Here is one approach to scratching the surface of industry KPI measurement and sharing, powered by GHX

            Design principles

            TBD


            Alignment

            Offers stability in clarifying customer expectations and aligning efforts to support the development of greater overall resiliency maturity.

              Outcomes

              Standardize expectations, encourage dialogue, inform decision making, incentivize resiliency, and improve outcomes.


                Retrospective and industry level resilience measures including:

                • Fill rates – available to HIRC
                • Category backorder rates – available to HIRC
                • Raw fill rates - TBD
                • Recall volumes - TBD

                    Additional measures may be introduced based upon project interests and capabilities.


                      • GHX aggregate network data
                      • Individual member data input

                        • Industry level resiliency KPI shared with HIRC members
                        • Distribution method, benchmarking, and download opportunities - TBD

                          Complete

                          2021

                          • Identify target measures
                          • Identify industry partner
                          • Board approval
                          • Activate v1

                            Q1 - 2022

                            • Invite project members
                            • Validate collaborators
                            • Activate workgroup

                              Q2 - 2022

                              • Define requirements
                              • Rollout v2

                                Q3 - 2022

                                • Collect feedback / refine

                                  Q4 - 2022

                                  • Transition to maintenance phase

                                    Members desire to track industry level resiliency for healthcare supply chains and to evolve this capacity as a standard and best practice where applicable.  No such utility currently exists.

                                    HIRC Board has identified development and rollout of a resilience KPI as a key initiative.  Senior Leadership Summit held January 2022 affirmed alignment and commitment to this effort.


                                    AHRMM has posted guidance for retrospective resiliency measures.  HIRC has adopted these.  GHX (Global Healthcare Exchange), a Collaborator of HIRC, is willing and interested in supporting this effort.

                                    HIRC goals include:

                                    • Understand resiliency metrics today
                                    • Identify interventions that can scale
                                    • Measure the impact

                                    GHX goals include:

                                    • Leverage the scale of the GHX network to provide insights and metrics in support of HIRC
                                    • Further the GHX mission of removing cost and waste from the healthcare industry

                                    Suitability

                                    HIRC is uniquely suited to champion this effort. Our members and collaborators are aligned and uniquely capable

                                    Value

                                    Developing a resiliency KPI standard will inform the maturation of the healthcare supply chain, which is central to HRIC mission/vision.

                                    Impact

                                    Aligning HIRC’s KPI with other partners can simplify, scale, and strengthen the value.


                                    • Continue previous work contributed by GHX in agile cycles.
                                    • Spin up a workgroup composed of providers, suppliers and Collaborators.
                                    • Reach out to aligned industry partners for greater value in design and adoption. 
                                    • Identify a Board member as champion.

                                    TBD


                                    Planning

                                    • What resiliency KPI do Members use today?
                                    • Do existing measures include industry level benchmarks?

                                    Requirements

                                    • Who are the primary users of the output?
                                    • Do we need additional data contributors?
                                    • In what way should the output inform resiliency discussion?
                                    • Should the raw data be accessible for download and individual analysis?

                                    Scope

                                    • Just industry level in aggregate?
                                    • Should the data be broken down to meaningful subcategories?
                                    • Should users be able to view their individual performance and benchmark?
                                    • Will this project drive best practice in how individual members manage resiliency KPI?
                                    • Can this project inform direct cost impacts of backorder activity?

                                    Delivery

                                    • Is jpeg, slide deck, pdf adequate as delivery media?
                                    • Do we need an online portal?
                                    • If yes, what user experience is desired?

                                    Other

                                    • Is the output viewable to HIRC members only, or anyone?


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