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Material Management Proposal Essay

2071 words - 9 pages

Material Management Proposal
As companies move towards increased global competitiveness, supply chains face new issues and challenges. These include increasing demands to reduce costs, increase quality, improve customer service and ensure continuity of supply (Goebel et al., 2003). In health care, departments called “Materials Management” are responsible for directing the supply chain. Materials managers control significant resources (Langabeer, 2008, p.241). Hence, this paper will: 1) discuss the role of material management and the role of operations managers in this process, 2) identify possible constraints the hospital may experience in its supply chains, 3) describe the potential ...view middle of the document...

There are five vital principles for advancing productivity and efficiency in hospital logistics:
• Keep Distribution Cycle Times and Productivity in Mind
• Separate Patient Traffic Flows from Staff
• Focus on the Interdepartmental Process Flows on Each Floor
• Use a Hub-and-Spoke Model
• Use Optimization to Minimize Costs
Identify possible constraints the hospital may experience in its supply chains
Varghese (2010) identified the following constraints:
1. The problems faced by traditional pharmacies include the lack of a standardized process for stock taking of goods such as surgical equipments, drugs, patient support equipments and devices, visual inspection of on-hand quantities and reconciliation of received goods against the bills.
2. Drawbacks for handling, storage and transportation of temperature sensitive products. World Health Organization (WHO) reported that 25 % of all vaccine products reach their destination in a degenerated state.
3. Downsides in the environmentally responsible side of hospital supply chain such as reverse flow of waste including disposal, recycling and picking up from the point of usage is often neglected.
Describe the potential effects of implementing a new collaborative planning process.
Collaborative planning process can best be described as an inter-organizational relationship type process in which the contributing parties concur to invest resources, jointly achieve goals, disclose information, (Ring and Van de Ven, 1994; Barrat and Oliveira, 2001) resources (Phillips et al. , 2000), rewards and responsibilities as well as jointly make decisions and solve problems (Spekman et al. , 1998). Collaboration is established on mutual trust, openness, shared risk and shared rewards that yield a reasonable benefit, consequential in better performance than it would be without the collaboration (Hogarth-Scott, 1999). It entails cooperation and some form of alliance among two or more organizations. These are created for sharing the costs of large investments, pooling and spreading of risk, and access to complementary resources. In the same way, firms set up close, long-term working relationships with suppliers and customers who depend on one another for much of their business, growing interactive relationships with partners who share information freely, work together when trying to solve conventional problems when designing new products, who jointly plan for the future, and who make their success mutually dependent (Spekman et al. , 1998). More and more companies are collaborating in the supply chain for the reason of market diversity, competitive pricing and rapid product life cycles.
Justify implementing a new collaborative planning process
Implementing a new collaborative planning process will have the following positive outcomes (Soosay et al. 2008):
• Maintaining standardized operations
The management who experienced standardized operations with a good number customers and suppliers sustained these...

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