The digital evolution of procurement IN ASSOCIATION WITH
MEDITERRANEO HOSPITAL
DIGITAL REPORT 2020
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The Digital Evolution of Procurement
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Pavlos Tamvakis, CPO at Mediterraneo Hospital, discusses the evolution of its procurement operations alongside its digital transformation journey
W
ith 15 years of experience in the medical field, Pavlos S. Tamvakis, CPO at Mediterraneo Hospital, began his
career in the pharmaceutical industry conducting imports and exports for pharmaceutical drugs in the European Union (EU). After a few 04
years in the industry, Tamvakis moved into the medical device sector, where he was introduced to Mediterraneo Hospital. “I came to provide Mediterraneo Hospital with some medical devices, and they offered me the chance to set up a purchasing department for the hospital, which I have now been running for the past eight years,” says Tamvakis. When Tamvakis first came to the hospital there wasn’t a procurement department. “They had certain individuals managing procurement in each department sending purchase orders to the suppliers. By doing it like that, we did not have an overall clear picture of all the purchase orders. As a result one of the main implementations I made when I joined the hospital was developing a centralised procurement department,”
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2000
Year founded
€36m+ Revenue in Euros
350
Number of employees www.me di t e rra ne o ho spi t a l . com . g r
MEDITERRANEO HOSPITAL
“ The main difference between our procurement operations before and now is that we have a clear picture of our procurement year on year” — Pavlos S. Tamvakis, CPO, Mediterraneo Hospital
comments Tamvakis. In addition to establishing a centralised procurement department, Tamvakis worked with his team to set up an e-store for the hospital. “The e-store allows people who need certain items to access the B2B store and make their purchase order on a centralised system, that notifies the procurement department and suppliers via email,” adds Tamvakis. In doing this, Mediterraneo Hospital has reduced its paper-based methods for its procurement. “This centralised system
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also provides the hospital warehouse with visibility on what to expect coming in and out of the hospital, as well as what each department requires,” explains Tamvakis. For certain purchases made in the e-store, the products require approval, to implement this within the system, Tamvakis is working on an approval system, where for expensive products people can describe their requirement for the item and what it will achieve, which can then be approved or declined via the system. This system began development in the summer and is expected to be complete in October 2020.
“The main difference between our
of what our people and patients
procurement operations before and
are using for the operations, but we
now is that we have a clear picture
didn’t have a very clear picture of
of our procurements year on year,”
our disposables.” Since develop-
comments Tamvakis. Mediterraneo
ing its procurement operations,
Hospital has two types of procure-
Mediterraneo Hospital has clearer
ment, one disposables used in the
transparency over its disposables.
hospital, and one specifically for
“We know the exact quantities of
operations. “In the past we have
what we have bought, which depart-
always had a clear picture
ment uses them and how many
E X E C U T I V E P R O FILE :
Pavlos Tamvakis
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Title: CPO
Company: Mediterraneo Hospital
Industry: Healthcare
Location: Greece
Pavlos S. Tamvakis is an accomplished CPO who partners with senior management to mitigate and manage procurements through strategic planning following all regulatory compliance. Having followed courses in ISO Certifications, MDR 745/2017, ISO 13485:2016, ISO 9001:2008 and CFA Common Assessment Framework, he builds efficiency in procurement processes and implements new technologies in business operations with cost effectiveness always being his main goal. His continuous efforts have led to significant operational changes in the digital procurement transformation of the hospital over the past 8 years, making him an asset to the organization. Being challenged is what drives his success.
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patients we have throughout the year. As a result we have a clear picture on our average daily costs, which we didn’t have before,” adds Tamvakis. With the adoption of new technologies and implementation processes, the hospital continuously develops its visibility into its procurement, gaining further insight into the hidden costs of the hospital. When it comes to the industry as a whole, Tamvakis has seen an uptick in the purchase of large quantities. “To ensure that we have
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Reference: 1. Greiling M: A multinational case study to evaluate and quantify time-saving by using custom procedure trays for operating room efficiency. Poster presented at European Association of Hospital Managers, September 2011
“ When establishing new collaborations with multinational companies, it’s important to have mutual trust” — Pavlos S. Tamvakis, CPO, Mediterraneo Hospital
Mediterraneo Hospital CLICK TO WATCH
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09 enough materials to last the next
focusing on the hidden costs, such
month or throughout the year, we
as the time it takes to conduct a task
will buy stock for six months. This
and how it can be done more effec-
is something that we never used
tively, as well as reducing the amount
to do because we knew that the
of waste produced at the hospital.”
suppliers and distributors would
Since joining Mediterraneo Hospital,
have the quantity that we needed.”
Tamvakis’s department has devel-
Another trend Tamvakis is seeing in
oped partnerships with companies
the industry is the focus on hidden
such as Molnlycke. As part of its oper-
costs. “Due to competition being
ations, Mediterraneo Hospital tries
harsh, everything is quite cheap to
to establish direct line partnerships
purchase, so you can’t really get
with multinational companies to get
much cheaper prices, instead we
better prices for those working in the
are looking at ways to reduce costs.
hospital and its patients. “Molnlycke
At Mediterraneo Hospital we are
is a Belgium based company that www.me di t e rra ne o ho spi t a l . com . g r
MEDITERRANEO HOSPITAL
“ We are using automations in our warehouses day to day, but we also have two surgical robots, one for laparoscopic and one for orthopaedic surgeries” — Pavlos S. Tamvakis, CPO, Mediterraneo Hospital
provides the hospital with sterile 10
packs used in operations. Our partnership with Molnlycke took three years to establish due to the changes we made in the way that the hospital operates in order to increase the speed of our operations.” Molnlycke has also helped the hospital to diminish its costs by becoming a provider of personal protective equipment (PPE). “We didn’t originally buy our PPE from Molnlycke, but by switching to Molnlycke it has opened our eyes to the hidden costs and reduced a lot of the headaches during the current situation, which we would not have been able to do without our strong collaboration.”
When looking for strategic partners, Tamvakis stresses the importance of mutual trust. “When establishing new collaborations with multinational companies, it’s important to have mutual trust and a sense of safety. Another factor is track record. We like to work with big companies to ensure that if something goes wrong, we have a big company behind us to find out the answers and solutions.” Looking to the future, Tamvakis sees a lot of automation happening. “We are using automations in our warehouses day to day, but we also have two surgical robots, one for laparoscopic and one for orthopaedic surgeries. We’re seeing more and more new technologies emerging which is exciting and important to drive paperless operations. I believe this is something that not only healthcare will experience, but a lot of other sectors too.” Tamvakis also reiterates the importance of identifying hidden costs in the future. “There are a lot of costs that we have not taken into account in the past, but they do make a difference over time.”
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