NMHS Adopts Self-Distribution with TECSYS’ Software, Saves $14.5 Million & Increases Supplies Fill Rate to 99.98% for its Hospital Network
North Mississippi Health Services (NMHS), a diversified regional healthcare organization, has adopted a self-distribution strategy with TECSYS’ EliteSeries warehouse management software for healthcare, enabling it to reduce hospital supplies cost by as much as $14.5 million to date while significantly improving delivery of healthcare products to its hospital network.
Prior to selecting TECSYS, NMHS had a small inventory control facility with a significant number of manual processes that were not in keeping with the organization’s high quality and professional staff. NMHS saw a great potential for eliminating redundant steps and improving inventory management by altering the distribution management process and going directly to manufacturers. A disintermediation process that immediately paid off!NMHS’ service area covers two states; it includes six hospitals, one surgery center, 32-owned clinics, four nursing homes, a home health agency and 23 school health centers. In fiscal year 2008 (October, 2007 through September, 2008), NMHS admitted over 36,000 patients and over 123,000 cases in the ER. Coordinating care over such a wide area and in so many settings is one of the supply chain system’s key challenges.
With its self-distribution strategy enabled through the TECSYS software, NMHS is now in control of its own destiny by managing products in their supply chain, from cradle to grave. NMHS has also reduced product, operating and excessive costs associated with the purchasing, warehousing and delivery of supplies. Cost reductions to date are up to $14.5 million and an additional $8 million annually, while fill rate increased to 99.98%. Furthermore, the hospital gained large, unexpected operating benefits because the system eliminated the erratic hospital order pattern of the past. As a result, Hospital personnel were redeployed into patient care.
For more information about NMHS case study: http://www.tecsys.com/clients/success/NMHS.pdf
TECSYS is a leading supply chain management software provider that delivers powerful enterprise distribution, warehouse and transportation logistics software solutions. The company’s customers include about 800 mid-size and Fortune 1000 corporations in healthcare, giftware, office products, third-party logistics, and general wholesale high-volume distribution markets. TECSYS’ shares are listed on the Toronto Stock Exchange under the ticker symbol TCS.
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