What changes have you made to transform your supply chain into a value-generating function?
We went back and looked at our business and said, what products make the most difference at the appropriate cost? We all know that buying the cheapest products don’t give you the outcomes that you need. And in healthcare it’s very important to know that the products do the right job.
From a food standpoint, I think it’s really important. Our menus are designed by chefs and dieticians working together. We have found that if we spec a limited number of products, we get the best possible outcome. Oftentimes, you’ll see food service directors or chefs order the lowest cost item. What we do is we test those products and find that the lowest cost isn’t always the most valuable once it’s cooked and on the center of the plate. We have designed our menu not only to taste delicious, to meet all the nutritional requirements, but also to be the greatest value.
And by really standardizing our menus and our retail concepts, we can buy the right products that are cross-utilized, that allows us to hold the least amount of inventory on the shelves that’ll provide the freshest products to our patients and guests, all while providing a great cost to our customer.
How do you evaluate vendor relationships to ensure both quality and savings?
I think any business is based upon relationships, and that includes our vendor business partners. We are constantly meeting with them two to three times a year to find out what’s the next innovation in food service, what’s the next innovation in housekeeping. We’re always looking towards our business partners to find what’s new in the market and how can we put that in our business. In short, we look at them as partners and our expectation of them is to bring us the newest, latest, and greatest so our business can evolve on a day-to-day basis.
Is supply chain more than a cost center?
Supply chain is not just a cost center. I think you’ve got to really look at your purchasing to how they drive revenue. I think for us, supply chain allows us to have restaurant quality food within the hospital. Most hospitals look at food service as a nice to have for their patients, customers, and guests. We look at it as a restaurant, and in order to do that you have to look at your supply chain of what you’re buying and what revenue can it generate in your revenue generating opportunities.
What are some of the supply chain challenges currently facing healthcare?
Supply chain challenges, you really have to look at what you’re purchasing. Even our manufacturers today are struggling with staffing. We’re seeing more recalls than we’ve ever seen so having reliable, trusted vendors and products that you know that are safe for our customers is critical at this point in time. You’re seeing more food safety outbreaks that are happening, and we’re usually first to know. We know before the general market knows because we have those direct supplier relationships. And other things you got to really look at today is food bio-terrorism. Not a lot of people talk about it. We go and check our vendors to make sure that they are secure and we’re able to track our product back from the center of the plate all the way to where it was grown or produced. But we ensure that our food is not only delicious, but it’s safe in so many ways for our guests.