PRIME VENDOR
BY ELIZABETH HILLA
Staffing, Stockpiles and Security Three ways providers can reap more value from their distributor.
As we enter the third year of a global pandemic, many providers are taking
Product security
stock of their supply chains. They’re trying to figure out how supply chain can help
The “gray market” for medical sup-
lessen the challenge of staffing shortages and overworked caregivers. How to prepare
plies has existed since long before the
for the new crisis. How to ensure supply chain integrity and avoid sub-quality or coun-
pandemic, but the risks have increased in
terfeit products.
the last two years. In 2020, reports about counterfeit N95 respirators abounded; more recently we’ve heard horror stories
Stockpiles
about used nitrile gloves and counterfeit
sure to engage with suppliers and leverage
Most healthcare organizations have in-
COVID tests. Fake or sub-quality prod-
their expertise and counsel. For most or-
creased inventory levels to avoid potential
ucts put patient lives at risk. The single
ganizations, the prime vendor distributor
product shortages. And some are now
best strategy for obtaining only authen-
is the No. 1 trading partner, so I recom-
carrying very large stockpiles of certain
tic, approved products is to buy from
mend starting there.
types of products like PPE. The problem
established manufacturer partners or their
is that shortage areas are hard to predict
authorized distributors. But sometimes
Here are some ideas to explore with
– availability of masks and gloves, for
products are unavailable and it’s necessary
your distributor:
instance, has radically improved, while
to vet alternative sources. Talk to your
other categories are now constrained. So
distributor about:
As you do your strategic thinking, be
ʯ Identifying approved product
Staffing
it’s hard to stockpile your way out of a
HHS recently reported that over 19% of
crisis. Instead, I recommend investigating
all hospitals in the United States are expe-
how you can partner with your distribu-
riencing critical staffing shortages. Levels
tor to increase supply assurance without
of turnover and burnout in the nursing
taking on all the inventory risks and costs
when necessary, and who should
profession are unprecedented. To address
yourself. Talk about:
manage this responsibility
this challenge, ask your distributor about:
ʯ What additional services they can provide that relieve overworked frontline caregivers from product-
substitutions when a preferred item is unavailable
ʯ Criteria for vetting new suppliers
ʯ Programs like storage of bulk-buy inventories, sequestered emergency
Providers and distributors have been
products, and other services for
working together since the beginning of
increasing safety stock of key items
the pandemic. You don’t have to face
ʯ Inventory management services to
the challenges (and assume the risks) of
ensure that safety stock items are
the medical supply chain all by yourself.
your distributor are duplicating any
turned and used before expiration
The challenges keep changing, but strong
activities – such as vetting potential
ʯ Identification of the most critical
related activities
ʯ Whether your supply chain team and
partnerships persist between providers
new suppliers – and how you might
product categories and pre-
and distributors. By maintaining strong
be able to avoid task redundancy
established substitutes for such items
lines of communication, providers can
ʯ What product innovations they’d
ʯ Forecast-sharing to better
recommend to make clinical care
understand what the next high-
more efficient or otherwise reduce
demand or low-availability product
staff time
areas might be
The Journal of Healthcare Contracting | February 2022
get more value from their distributors, and both parties can benefit. For more ideas, visit www.streamlininghealthcare.org.
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