Executive IDN Insights are emailed to you bi-weekly to provide executive supply chain leadership insights from two of the most trusted healthcare supply chain leaders. For decades, they have led large supply chain organizations and now offer you their strategic thoughts on pressing issues you should be considering. Learn more about Brent and Mike.
If you’d like to receive this bi-weekly email series, please email Trey Beuttel to be subscribed.

Consolidated Services Centers: A Review of the 2022 ACE Summit

Michael Langlois | Thursday, March 31, 2022

Last month, during the ACE Summit in Orlando, several Ideas Exchanges and Education Sessions were held focusing on Healthcare Supply Chain Consolidated Services Centers. Current, and future, CSC Operations of Health Systems were presented and discussed by Indiana University Health, University of Pittsburgh Medical Center (UPMC), Trinity Health, AdventHealth and Froedtert Health. Jamie Kowalski and Lorcan Sheehan also presented highlights from their 2021 Health System Supply Chain Insights survey, as well as focusing on survey results from the Gartner Top 25 Healthcare Supply Chains supporting Consolidated Services Centers. 

Highlights of these discussions included: 

Consolidated Services Center Technology - the use of automation in Consolidated Services Centers such as Auto Store, Conveyance, Pick-Modules, Warehouse Management Systems and Wrist/Visual-Pick Scanners.

Consolidate Services Center Operating Models - self-owned and operated, joint venture with 3rd party logistics providers, and partial outsourced model.

Consolidated Services Center Offered Services - traditional product receipt, inventory and distribution, centralized cross-dock service, centralized print services, centralized mail services, elimination of cardboard from the hospital campuses, case cart services, Vendor-Managed Inventory, centralized transportation, and Pharmacy Services.

The Value of Consolidated Services Centers - before COVID, during COVID, and post COVID, preparation for the next pandemic and/or next local/national emergency.

The Specific Make-Up of a Consolidated Services Center - location, size, height, lease versus own/build, interior design, workflow, staffing models and operational hours/days.

Consolidated Services Center Value Proposition - volume needed to justify a CSC, Health System Geography needed to justify a CSC, Cost Effectiveness, Customer Service and Health Systems’ tighter control on product availability for care givers, current Global Supply Disruptions, and current escalating building and lease costs.

Consolidated Services Center Benchmarks - on-hand value, inventory turn rates, staffing ratios, number of Stock Keeping Units (SKUs) and Low-Unit of Measure.

As you can imagine, much ground was covered with differing opinions and results, but the prevailing sediment was that the implementation of Consolidated Services Centers in Healthcare is on the rise and is a value-add to most Health Systems.   

You can access the discussions I had with industry leaders at 2022 ACE Summit & Reverse Expo using the links below. 

Comprehensive Insights into Consolidated Services Centers
A Survey of Gartner’s Top 25 Supply Chains

Interested in Consolidated Services Centers for your Health System? Contact Trey Beuttel for more information about participating in the 2023 ACE Summit Consolidated Services Center Track.

Previous Insights