Arnold Palmer Hospital Supply Chain

ArnoldPalmer Hospital Supply Chain

ArnoldPalmer Hospital Supply Chain

ArnoldPalmer Hospital is considered one of the leading hospitals in theglobe that mainly focuses on women and children. The hospital wasfurther a greater part of the national purchasing group. While, inthis group, the hospital had faced several advantages anddisadvantages, but the disadvantages outweighed the advantagesforcing the hospital to move out of the group. The only advantage ofbelonging to this large buying group is that the company through thehelp of the group enjoyed a low-cost opportunities per the producttype. As a result of the numerous disadvantages, the hospital wasforced to change its strategy for supply chain (Bolumole, 2000).

Accordingto the Arnold Palmer Hospital’s Supply Chain (2015), the issuesthat led to the change of the supply chain strategy included,frequently changing suppliers of products by the purchasing group asa result of the lower bidders. Secondly, the purchasing group stoppedsupplying the familiar products and instead stocked the shelves withunfamiliar products. Lastly, the purchasing group was incapable ofnegotiating with the local manufacturers to secure the best pricing.The hospital formed a group together with other small businessescalled, Health Purchasing Alliance. As a result of this, the companywas able to save up to approximately $7 million.

Additionally,there were two main changes that were evidence as a result of thisformation. First, the hospital was structured and equipped with staffto make sure that the large part of the savings goes to the eightmembers who formed the group. Secondly, the trucks were able to dealwith the vendors better hence were guaranteed a committed volume anda 3-5 years signing contract (Lambert &amp Cooper, 2000).

References

Bolumole,Y. (2000). SWP 4/00 SUPPLY CHAIN MANAGEMENT: A REVIEW OF RELEVANTLITERATURE AND THEORY.

Lambert,D. M., &amp Cooper, M. C. (2000). Issues in supply chain management.Industrial marketing management,29(1),65-83.

YouTube,.(2015). Capítulo11 Arnold Palmer Hospital´s Supply Chain.Retrieved 23 July 2015, fromhttps://www.youtube.com/watch?v=1ELl4CRts6Y