Arnold Palmer case study

please answer the question related

Q3. Explain the benefits generated by the hospital's supply chain in gaining competitive advantage for the hospital (use performance indicators in the explanation of your answer) (1.5 marks). Q1. Describe in detail the process of supply chain at Palmer hospital (use drawing to support your answer). (2 marks) Video Case a goal of better medicine while achieving economic targets. For instance, the heart pacemaker negotiation by the cardiology sube committee allowed for the standardization to two manufacturers with annual savings of S2 million for just this one product Arnold Palmer Hospital is also able to develop custom prod ucts that require collaboration down to the third tier of the sup ply chain. This is the case with custom packs that are used in the operating room. The custom packs are delivered by a distributor McKesson General Medical, but assembled by a pack company that uses materials the hospital wanted purchased from specific manufacturers. The HPA allows Arnold Palmer Hospital to be creative in this way. With major con suiving, standardization blanket purchase orders, long-term contracts, and more control of product development, the benefits to the hospitalare substantial Amold Palmer Hospital's Supply Chain Amold Palmer Hospital, one of the nation's top hospitals dedi- cated to serving women and children, is a large business with over 2.000 employees working in a 431 bed facility totaling 676,000 square foet in Orlando, Florida. Like many other hospitals, and other companies, Arnold Palmer Hospital had been a long-time member of a large buying group, one servicing 900 members But the group did have a few limitations. For example, it might change suppliers for a particular product every year (based on a new lower-cost bidder) or stock only a product that was not familiar to the physicians at Arnold Palmer Hospital. The buying group was also not able to negotiate contracts with local mano facturers to secure the best pricing So in 2003, Arnold Palmer Hospital, together with seven other partner hospitals in central Florida, formed its own much smaller, but still powerful with $200 million in annual purchases) Healthcare Purchasing Alliance (HPA) corporation. The new alli- ance saved the HPA members S7 million in its first year with two main changes. First, it was structured and staffed to ensure that the bulk of the savings associated with its contracting efforts went to its eight members. Second, it struck even better deals with ven dors by guaranteeing a comite volume and signing not l-year deals but to 5-year contracts, "Even with a new internal cost of S400,000 to run HPA. the savings and ability to contact for what out member hospitals really want makes the deal a winner," says George Delong, head of HPA Effective supply chain management in manufacturing often focuses on development of new product innovations and efficiency through buyer vendor collaboration. However, the approach in service industry has a slightly different emphasis. At Arnold Palmer Hospital, supply chain opportunities often manifest them selves through the Medical Economic Outcomes Committee. This committee and its subcommittees) consists of users including the medical and nursing all who evaluate purchase options with Endnote 1. Inventory quantities often fluctuate wildly, and various types of inventory exist es uw material work in process finished poods and maintenance, repair and operating supplies (MRO) Therefore, care must be taken when using inventory valves, they may reflect more than just supply chain performance