Client Problem

A leading Australian health services provider required an expert overhaul of their supply chain to ensure that it was maximising efficiencies across the procurement process.

Southern Health Care is Victoria’s largest health provider. A new CEO appointment prompted a review of business critical processes across the board. Due to its significant scope and strategic importance, SMS was engaged to review the entire procurement process to identify areas for immediate improvement.

SMS Approach

SMS undertook a high level review of a supply chain that was involved in the purchase and distribution of over $200 million worth of products and services every year.

The high volume of goods and services that passed through the existing supply chain meant that a full audit was unrealistic within the stipulated time frame. SMS adopted a top level approach and reviewed integral processes and key suppliers across the current system. Focusing on people, structure, technologies, and processes, the review covered:

• ordering, invoicing, and distribution processes 
• current suppliers’ capability, continued relevance, and wider strategic importance 
•  physical delivery and logistical frameworks
   

Recommendation

SMS developed and presented a series of recommendations based on improving the strategic value of each individual supply chain component.

SMS reviewed and analysed their audit findings and, applying their 20 years of industry experience, developed a detailed report on recommended improvements across the entire procurement process. A program of work was put forward that would enable Southern Health Care to make real and defined steps towards a model of strategic procurement.

 Specifically, the program of work included: 

• appointing a single accountable authority to manage the entire supply chain 
•  provision of an SMS-appointed mentor to coach and motivate key personnel in implementation of the recommended supply chain improvements 
• establishment of a detailed program of work and framework for medium and long term implementation

Outcome

All recommendations made by SMS were accepted and implemented, and a new key hire is in the process of being appointed to help facilitate the program of change.