Intermountain Healthcare takes top spot in Gartner Healthcare Supply Chain Top 25
Gartner, Inc. has released its ninth annual Healthcare Supply Chain Top 25 ranking, with Intermountain Healthcare taking the top spot for the second straight year.
Gartner said the rankings are put together to recognise companies across the healthcare value chain that demonstrate leadership in improving human life at sustainable costs.
“The importance of supply chain leadership has manifested itself in a very literal way in 2017," said Stephen Meyer, Research Director at Gartner.
“A number of supply chains made changes at the top of their organisations that resulted in radical shifts in strategy. In many cases, these shifts seemed to be very myopic and siloed rather than focusing on the outside-in strategies that are important for moving healthcare collectively forward.
“Conversely, supply chains with strong leadership, like those recognised in our 2017 ranking, are embracing external partnership along with exploring the benefits that new abilities, like digital technology and advanced analytics, can bring."
Explaining its decision, Gartner said Intermountain Healthcare has a history of using supply chain strategically to support its corporate mission.
“New developments from the leadership team led by the new CEO, Dr. Marc Harrison, continue to demonstrate the relationship of supply chain to Intermountain Healthcare's mission of ‘Helping People Live the Healthiest Lives Possible,’” said Gartner in a release.
“Supply chain is an integral part of the shared support services foundation that helps connect its change from a geographic structure of care to one based on two segments: a community care group focused on wellness and primary care and a specialty care group focused on inpatient and specialty care.”
Mayo Foundation returned to the number two position in the 2017 ranking, with Cardinal Health moving down a spot to number three. McKesson and Johnson & Johnson were ranked fourth and fifth respectively.
1. Intermountain Healthcare
2. Mayo Foundation
3. Cardinal Health
5. Johnson & Johnson
7. CVS Health
8. Cleveland Clinic
9. Owens & Minor
11. Walgreens Boots Alliance
13. Ochsner Health System
15. Banner Health
16. Advocate Health Care
18. Henry Schein
19. Duke University Health System
24. Health Resources
25. Scripps Health
5 Minutes With: Jim Bureau, CEO Jaggaer
What is data analytics, and why is it important for organisations to utilise?
Data analytics is the process of collecting, cleansing, transforming and analysing an organisation’s information to identify trends and extract meaningful insights to solve problems.
The main benefit for procurement teams that adopt analytics is that they’re equipped to make faster, more proactive and effective decisions. Spend analysis and other advanced statistical analyses eliminate the guesswork and reactivity common with spreadsheets and other manual approaches and drive greater efficiency and value.
As procurement continues to play a central role in organisational success, adopting analytics is critical for improving operations, meeting and achieving key performance indicators, reducing staff burnout, gaining valuable market intelligence and protecting the bottom line.
How can organisations use procurement analytics to benefit their operations?
Teams can leverage data analytics to tangibly improve performance across all procurement activities - identifying new savings opportunities, getting a consolidated view of spend, understanding the right time for contract re-negotiations, and which suppliers to tap when prioritising and segmenting suppliers, assessing and addressing supply chain risk and more.
Procurement can ultimately create a more comprehensive sourcing process that invites more suppliers to the table and gets even more granular about cost drivers and other criteria.
"The main benefit for procurement teams that adopt analytics is that they’re equipped to make faster, more proactive and effective decisions"
Procurement analytics can provide critical insight for spend management, category management, supplier contracts and negotiations, strategic sourcing, spend forecasting and more. Unilever, for example, used actionable insight from spend analysis to optimise spending, sourcing, and contract negotiations for an especially unpredictable industry such as transport and logistics.
Whether a team needs to figure out ways to retain cash, further diversify its supply base, or deliver value on sustainability, innovation or diversity initiatives, analytics can help procurement deliver on organisational needs.
How is data analytics used in supply chain and procurement?
Data analytics encompasses descriptive, diagnostic, predictive and prescriptive data.
Descriptive shows what’s happened in the past, while diagnostic analytics surface answers to ‘why’ those previous events happened.
This clear view into procurement operations and trends lays the groundwork for predictive analytics, which forecasts future events, and prescriptive analytics, which recommends the best actions for teams to take based on those predictions.
Teams can leverage all four types of analytics to gain visibility across the supply chain and identify optimisation and value generating opportunities.
Take on-time delivery (OTD) as an example. Predictive analytics are identifying the probability of whether an order will be delivered on time even before its placed, based on previous events. Combined with recommendation engines that suggest improvement actions, the analytics enable teams to proactively mitigate risk of late deliveries, such as through spreading an order over a second or third source of supply.
Advanced analytics is a research and development focus for JAGGAER, and we expect procurement’s ability to leverage AI to become even stronger and more impactful.