Sustainability in the Supply Chain

WSHMMA Annual ConferenceApril 16-18, 2014

Laura Brannen

Overview

• The AHA Sustainability Roadmap

• Imagine a comprehensive toolkit for– Environmentally

Preferable Purchasing Strategies

– Key Cost Saving Opportunities

The Roadmap

Imagine a toolkit contributed by expertise from across these PMGs

AHA Sustainability Roadmapwww.sustainabilityroadmap.org

The Roadmap

What would this look like?• A consolidated resource warehouse• Practical implementation tools

(PIMs)

The Roadmap

The Roadmap aims to provide:• Continuous improvement of tools through

user feedback• A platform for knowledge exchange – Hospital staff– Vendors and industry

experts

Stakeholders

• Roadmap Allies– Adopt PIMs– Engage in a conversation

• Business Partners– Contribute expertise

• Roadmap Task Force Volunteers– Vet materials– Drive strategy

The Platform

The Platform

The Site

The Roadmap

Participate!• Become an Ally• Utilize and provide feedback on the PIMs

and resources• Submit a case study or PIM• Encourage your vendors to submit case

studies and PIMs• Join the Listserv

AHRMM Task Force

Your peers and business partners working to develop sustainability tools

AHRMM Task Force

• Discusses and develops sustainability strategies– What does Cost-Quality-Outcomes mean for

sustainability?– How can supply chain work more closely with

vendors to streamline sustainability efforts?• Develops tools for purchasing staff:

The Roadmap’s Performance Improvement measures

Check out the task force online!

Environmentally Preferable Purchasing Strategies

EPP Strategies

• Adopt a facility wide environmentally preferable purchasing policy (EPP)

• Incorporate sustainability into your value analysis team/process

• Maintain a list of chemicals/materials of concern

• Collaborate with other departments• Leverage the expertise of

your vendors and GPOs

EPP Strategies

Adopt a facility wide environmentally preferable purchasing policy (EPP)• Environmental, human and financial health

considerations (chemicals, waste, water, energy, IAQ, etc.)

• Total cost of ownership, life-cycle costing, and Cost Quality Outcomes!

• Sharing expertise between manufacturers, suppliers, vendors, and GPOs

• Responsibility: contract administrators & value analysis teams

• List KPIs for each contract

Key Performance Indicators – what are they anyway?

LCI, TCO, CQO

• Life Cycle Costing

• Total cost of ownership (TCO)

• Cost-quality-outcomes (CQO)

EPP Strategies

Incorporate sustainability into your value analysis team/process• Identify, vet, and recommend green products

and services • TCO -- CQO• Standardized questions• Rethinking product costs and

attributes • Verifying product claims

EPP Strategies

Collaborate with other departments• EVS

End of life disposal costs, cleaning attributes • Safety

Haz/mat, IAQ, Joint Commission, regulations

• Infection Control Re-usable products, cleaning chemicals

EPP Strategies

Collaborate with other departments• Facilities

Electrical/water/maintenance costs• Design & Construction

Energy/water/operations/materials/resources

• Food ServiceLocal/organic/reusable

EPP Strategies

Leverage the expertise of your vendors and GPOs• Resources, tools and support mechanisms

– 50 Ways to Go Green Checklist– Chemical Policy Statement– PVC-DEHP Elimination Resource Guide– SUD Reprocessing Toolkit

• Audits and assessments – Utilize more reusable totes and shipping containers– Reduce/eliminate packaging or take it back for re-use– Deliver all printers and copiers set for double sided and

black/white copying and printing • GPO product evaluation/steering committee participation• “Green Product Guide”

– How much of your purchasing qualifies as “green”?• Vendor-specific sustainability programs (e.g. JnJ’s Earthwards)

EPP Strategies

Example EPP Initiatives• Maintain organization-wide mercury-free policies• Install low-flow flush fixtures • Switch to reusable sharps containers• Reduce paper usage and sustainable printing standards • Utilize sustainable carpet • Purchase EPEAT computers and monitors • Develop energy-efficient lighting standards • Reprocess approved single-use devices• Purchase Energy Star rate office equipment and appliances • Choose sustainable textiles• Utilize microfiber cloths and mops • Eliminate/minimize packaging or take back for re-use• Invest in re-usable options (toters, linens, OR products)• Develop take-back/leasing programs (copiers, TV’s, equip.)

Key Cost Saving Opportunities

Cost Saving Opportunities

Single Use Device Reprocessing (SUD)• Gap analysis – surgical and medical devices• Develop business case • Gain senior leadership, physician, surgeon,

nursing support • Implementation plan/process• Communication & education • Measurement & reporting

Cost Saving Opportunities

SUD Reprocessing – Case Study

Facility Medical Surgical Total900 Beds $631,698 $881,640 $1,513,338300 Beds $166,878 $195,735 $362,613

25 Beds $60,198 - $60,198

90 Beds $49,530 $10,929 $60,459

65 Beds $43,434 $28,915 $72,349

25 Beds $35,814 - $35,814

25 Beds $26,670 $29,868 $56,538

300 Beds (LTC) $376,105 - $376,105

Total SUD Savings $1,390,327 $1,147,087 $2,537,414

Cost Saving Opportunities

Reusable Sharps Containers• Vendor audit• Cost/benefit analysis• Implementation plan/process– Replacement of disposal with re-usable

• Collection process – internal vs. external • Communication & education • Measurement & Reporting

Cost Saving Opportunities

Reusable Sharps Container - Case Study

Summary

• The Roadmap is here to help you!www.sustainabilityroadmap.org

• EPP Strategies: Incorporate sustainability criteria into your existing purchasing practices

• Key Cost Saving Opportunities: Identify and switch to products with a lower total cost of ownership

Thank you!www.sustainabilityroadmap.org

roadmap@mazzetti.com