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Improve collaboration in healthcare supply‐chain
Applying SCOR model
s reserved
John Paul
Professor & Research Fellow, BEM (Bordeaux Ecole de Management), France
Qualified SCOR® Instructor , by Supply Chain Council
gnitivePte.Ltd. All right
Q , y pp y
Managing Director, iCognitive
PLAN    SOURCE    MAKE    DELIVER    RETURN
© 2013 CopyrightiCog
Introduction:Introduction:
• The Supply‐Chain Council’s definition of a Supply Chain 
applied to Healthcare
– Define and Analyze Supply Chain(s)
erved
– Define and Analyze Supply Chain(s)
– Some metrics to monitor performance
vePte.Ltd. All rights rese
– A model to help identify gaps and inefficiencies in 
processes
2013 CopyrightiCognitiv
– Fix inefficiencies with leading practices and tools from 
industry, take costs out
© 2
Healthcare SC (Hospital) ‐ Example
ervedvePte.Ltd. All rights rese2013 CopyrightiCognitiv© 2
Pharmaceutical sales and marketing – Example
• Pharmaceutical sales and marketing activities have their own 
set of logistics related activities that can be fully described using 
the SCOR model
Plan
Segment 
Analysis, 
Marketing 
Planning
Patients
erved
Make
DeliverSource Make
DeliverMakeSourceDeliver SourceDeliverSource
Pharmacies, 
Hospitals, 
Doctors
Patients
vePte.Ltd. All rights rese
Supplier Customer
Customer’s
CustomerSuppliers’
Supplier
Make DeliverMakeSourceDeliver SourceDeliver
Your Company
Source
Return Return Return
Return Return Return
Return Return
2013 CopyrightiCognitiv
Internal or External Internal or External
Marketing 
Data 
Suppliers
Marketing 
and Sales 
F i
Doctors, 
Hospitals
© 2
Functions
Define Supply Chains ‐ Example
Who are my customers?  Their expectations?
Wh d d/ i ?
Customers
What are my products and/or services?
erved
Patients Clinics Drs ER Svcs
Pharma/Labs X X X X
vices
vePte.Ltd. All rights rese
Maternity X X
Acute Care X X
ucts / Serv
2013 CopyrightiCognitiv
Acute Care X X
Emergency X X X
Produ
© 2
Integrated planning based on SCOR
SCOR model ‐ Processes
P1 Plan Supply ChainP1 Plan Supply Chain
Plan
P2  Plan Source P3  Plan Make P4  Plan DeliverP4  Plan Deliver
Source Make Deliver
P5  Plan ReturnsP5  Plan Returns
rs
ers
S1  Source Stocked Products M1  Make‐to‐Stock
M2  Make‐to‐Order
M3  Engineer‐to‐Order
D1  Deliver Stocked Products
D2  Deliver MTO ProductsD2  Deliver MTO Products
D3 Deliver ETO ProductsD3 Deliver ETO Products
S2  Source MTO Products
S3  Source ETO Products
ustomer
Suppli
D4 Deliver Retail ProductsD4 Deliver Retail Products
Cu
SR1  Source Return Defective ProductSR1  Source Return Defective Product
SR2  Source Return MRO ProductSR2  Source Return MRO Product
SR3  Source Return Excess ProductSR3  Source Return Excess Product
DR1  Deliver Return Defective ProductDR1  Deliver Return Defective Product
DR2  Deliver Return MRO ProductDR2  Deliver Return MRO Product
DR3 Deliver Return Excess ProductDR3 Deliver Return Excess Product
EnableEnable
SCOR Level 2 description of hospital supply chain
SCOR level 3 description: source specialtiesSCOR level 3 description: source specialties
ervedvePte.Ltd. All rights rese2013 CopyrightiCognitiv© 2
Measure the performanceMeasure the performance
• Metrics, Key Performance Indicators (KPIs), y ( )
– Financial Performance
– External Performance
Di t f t “ t ”
erved
• Direct face to “customer”
• Understanding requirements and expectations
– Internal Performance
vePte.Ltd. All rights rese
• Keys to improving profitability and efficiency
• Balanced metrics
2013 CopyrightiCognitiv
• Balanced metrics
– Healthy mix of Financials, Externals and Internals 
– Benchmarks
© 2
Improve Performance: Apply SCOR ModelImprove Performance: Apply SCOR Model
• Identify inefficiencies in the processes by de t y e c e c es t e p ocesses by
applying the Supply Chain Operations Reference 
(SCOR) Model
erved
– Supply Chain processes of Plan, Source, Make, Deliver 
and Return
Multi level decomposition of processes
vePte.Ltd. All rights rese
– Multi‐level decomposition of processes
– Common set of metrics and best practices
– Application of the SCOR Model requires an extension 
2013 CopyrightiCognitiv
pp cat o o t e SCO ode equ es a e te s o
of the model to the organization’s specific supply 
chains
© 2
SCOR® Model, The Process View
Processes
Best 
Practices
Metrics Technology
Thank you
s reserved
iC iti Pt Ltd
gnitive Pte.Ltd. All rights
iCognitive Pte Ltd
13 Ann Siang Road #02‐01
Singapore 069693
Phone +65 63252810 / Fax +65  62200690
i iti
© 2013 CopyrightiCog
www.icognitive.com
info@icognitive.com

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