The Johns Hopkins Health System consists of several hospitals and provides over 3 million meals and services to over 82,000 patients annually. It aims to achieve "best in class" status through consolidating procurement, building an efficient receiving facility, redesigning distribution facilities, implementing supply chain metrics, and partnering with suppliers. Challenges include standardizing processes while supporting small businesses and ensuring adequate staffing and training.

1. Supply Chain Management
“A Customer’s View”
The Johns Hopkins Health System

2. Presentation Outline
1. Hopkins At-A-Glance
a) Vital Stats
b) Hopkins of The Future
2. Operational Goals
3. Supply Chain at Hopkins
a) Achieving “best in class” status
b) Performance metrics
4. Partnerships That Work
5. Supply Chain Challenges and Opportunities

3. Hopkins At-A-Glance
• Johns Hopkins Health System
– The Johns Hopkins Hospital
• Acute Care – 921
• Neonatal ICU – 36
• Comprehensive Rehab – 14
– Johns Hopkins Bayview Medical Center
• Acute Care – 318
• Neonatal ICU – 25
• Non-Acute Care – 369
– Howard County General Hospital
• Acute Care – 200
• Neonatal ICU – 18
– Johns Hopkins Community Physicians
– Johns Hopkins Home Care Group

4. Hopkins At-A-Glance
Here’s What We Do Yearly Activity
Discharges 82,523
Patient Days 414,144
Pieces of Mail 12,000,000
Pounds of Trash 12,000,000
Miles of Cart Movement 146,000
Meals Served 3,200,000
Pounds of Linen 4,400,000
Cleanable Square Feet 3,000,000

5. Supporting Our Future

6. Hopkins 2011

7. Vice President General Services (JHH)
Vice President Supply Chain Management (JHHS)
Vice President
Executive Manager
Assistant Finance
Asst Dir
After Hours
Sr. Director Director Director Director Administrator
Supply Chain Nutrition Svcs Environmental Svcs Special Services Community Health
Dir JHH MM Mgr Pat Svcs Mgr Waste Mgr Mail
Mgr Patient
Dir JHBMC MM Mgr Retail Svcs Mgr Salvage
Transport
Dir MDC Mgr Catering Reprographics
Dir Corp Purch/ Mgr Call
Shared Svcs Center
Asst Dir Inv
Control
Products Nurse

8. Operational Goals
1. Have “our service equal our science”
2. Achieve “best in class” status in the
healthcare field
3. Fix what’s broken NOW

9. Supply Chain At Hopkins
Achieving “best in class” Status
• Consolidation of Procurement Process
$415,943,113 $270,355,757
JHHS JHU
$686,298,871
Combined

10. Supply Chain At Hopkins
Achieving “best in class” Status
• State of the art Receiving Facility
– Complete separation of clean and soiled
activity
– Capacity to handle all incoming material
– Re-routing of all truck traffic away from the
main buildings

11. Supply Chain At Hopkins
Achieving “best in class” Status
• Facilities Redesign
– We went from this……..

12. Supply Chain At Hopkins
Achieving “best in class” Status
• Facilities Redesign
– To this

13. Supply Chain At Hopkins
Achieving “best in class” Status
• Distribution Challenges
– Receiving center ¼ mile for main building
– 2,000 carts or over 400 miles of distance daily
– Variations in process
• Timing
• Functions
– Supplies, Linen, Food, Trash
• Distribution Technology
– AGV’s
– Tugs
– Towline

14. Supply Chain At Hopkins
Achieving “best in class” Status

15. Supply Chain At Hopkins
Achieving “best in class” Status
• Towline Working as Designed

16. Supply Chain At Hopkins
Achieving “best in class” Status
• Open vs. Closed Unit Supply Distribution
– Open wired shelving
– Closed “biometric” cabinets

17. Supply Chain At Hopkins
Achieving “best in class” Status
• Offsite Distribution
– 50,000 square foot facility
– 5 miles from main campus
– Management
• In-House
• Outsourcing

18. Supply Chain At Hopkins
Achieving “best in class” Status
• Supply Chain Metrics

19. Johns Hopkins MDC
Johns Hopkins MDC
Valuated Stock
Inventory Values
1,800,000
$4,000,000
1,600,000
$3,500,000
1,400,000
$3,000,000
1,200,000
$2,500,000
1,000,000
$2,000,000
800,000
$1,500,000
600,000
$1,000,000
400,000
$500,000 200,000
$0 0
Year 2007 Year 2008
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Johns Hopkins MDC
Johns Hopkins MDC
Issue Receipts Target: 18 Turns IssuesTurn Rates
Issues Vs. Receipts
$7,000,000 35.00 32.46
$6,000,000 30.00
22.26
25.00
$5,000,000 19.11 17.99 18.45 18.26
20.00
$4,000,000 17.68
15.00 17.11
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$3,000,000
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$2,000,000
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Johns Hopkins MDC
712 Pos itive
Johns Hopkins MDC
711 Negative % of Items Adjusted
Inventory Adjustments
$1,500,000 140%
120%
$1,000,000 100%
80%
$500,000 60%
40%
20%
$0
November
June
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July
March
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September
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December
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May
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Year 2007 Year 2008
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Year 2007 Year 2008
Johns Hopkins MDC
Johns Hopkins MDC
Excess Inventory +/-
$2,000,000
Open Purchase Orders (PO's)
100
$1,500,000
92
80
61
$1,000,000
49
60
$500,000
40
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20. Partnerships That Work
• On-site procurement support
– Stock/Non-Stock Contracting
• Commodity/Functional Unit support
– Product de-casing
– Off hours deliveries
• On-site area management
– Warehouse management
– Low unit of measure distribution

21. Supply Chain Challenges and
Opportunities
• Safety
• Standardization
– Value Analysis Process
• Supporting underutilized businesses
• Staffing and Training
– Replenishing the pipeline