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Research Brief

 

Johns Hopkins Improves Inventory Management

December 26, 2019

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This research brief examines how The Johns Hopkins Health Systems (JHHS) Corporation leverages SAP ECC and SAP BW to improve inventory turns while maintaining close to 100% fulfillment and delivery accuracy, which hospitals need to treat patients without risking lives. SAPinsider recently interviewed Max Mendez, Supply Chain MMIS Inventory lead at JHHS.

As a company operating healthcare facilities, JHHS faces heavy regulations and must operate 24/7 with no downtime.

Before 2012, JHHS Affiliates managed all its inventory on non-SAP software. At the time, JHHS struggled to share all the information across its supply chain units and manage inventory in a way that guaranteed the central stores and procedural areas always had the supplies they needed without too much dead stock.

As a result, from 2012-2015, JHHS moved all its hospitals to SAP software, one at a time. Mendez shares, “We would spend eight months mapping, blueprinting, and training supply chain specialists to use SAP ECC before implementing the application and then moving onto the next affiliate hospital. Needless to say, we worked through Christmas and New Year’s a few times.”

The inventory planners at JHHS run the material requirements planning functionality of SAP ECC while the nurses use Epic’s medical billing system to track the usage of supplies and plan for upcoming operations and procedures.

“Our supply chain team likes the changes because it makes them be more proactive,” says Mendez. “Night-before orders and emergency supply calls are becoming rare, and if something causes a delay, we can still plan ahead for cases and procedures more smoothly without panicking.”
The full research brief explains how JHHS integrated its processes to improve inventory planning. 

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