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How to use benchmarking to reduce planning and purchasing costs.

L W Poole1

  • 1Eastman Kodak Company, Rochester, NY, USA.

Hospital Materiel Management Quarterly
|July 6, 1997
PubMed
Summary

Materiel management teams can demonstrate their value by benchmarking their services. This approach provides data-driven answers to justify staffing and improve inventory management and total cost.

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Area of Science:

  • Operations Management
  • Supply Chain Management

Background:

  • Materiel management departments often face scrutiny regarding staffing levels.
  • A disconnect exists between management's perception of staffing needs and the department's operational requirements.

Purpose of the Study:

  • To address the recurring question of "Why do you have so many people?" with data.
  • To validate the necessity and effectiveness of materiel management services through objective analysis.
  • To initiate a benchmarking project to improve planning, purchasing, and scheduling.

Main Methods:

  • Initiated a benchmarking project in early 1993.
  • Focused on comparing planning, purchasing, and scheduling services with other companies.
  • Aimed to gather data to answer "How do you know?" regarding operational efficiency.

Main Results:

  • The benchmarking project provided insights into the operations of other companies.
  • The study aimed to demonstrate the materiel management group's expertise and value.
  • Techniques for initiating and conducting benchmarking were developed.

Conclusions:

  • Benchmarking provides a data-driven method to justify staffing and operational needs.
  • Understanding and demonstrating the value of materiel management is crucial for resource allocation.
  • Implementing benchmarking can lead to improved planning, purchasing, and scheduling processes.

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