P R E S E N T E D B Y: How a Pharmacy Buyer Can Survive a Wholesaler Conversion Carol Goularte,...

P R E S E N T E D B Y:

How a Pharmacy Buyer Can Survive a Wholesaler Conversion

Carol Goularte, Sierra Nevada Memorial Hospital, Grass Valley, CA

Allen Sutherland, St Joseph Hospital and Medical Center, Phoenix, AZ

August 13, 2008

supply chain management

Introduction

Good morning, My name is Carol and I am not going to stand up here and bore you with a lot of slides that have a lot of words on them that you have to read and it gets really boring and make you wish you hadn’t of come to the conference this year. After all, you have probably already sat through a lot of presentations already and it is early in the morning and you haven’t had enough coffee yet to get started and now you have to listen to me go on and on…..no, Allen and I wouldn’t want to do that to our peers!

We are actually going to give you the most important first hand information you are ever going to need if you ever have to change your wholesaler. So, thanks for attending our presentation this morning.


Who, What and Why an RFP?

• WHO was on RFP Team? Four Pharmacy Directors, Four Pharmacy Buyers (Allen and I were two of them), Four Corporate Supply Chain Management representatives(Two Pharmacy, One Financial and one Contract person)



• WHAT is an RFP? Request for Proposal (referred to as RFP) is an invitation for suppliers, often through a bidding process, to submit a proposal on a specific commodity or service. A bidding process is one of the best methods for leveraging a company's negotiating ability and purchasing power with suppliers.



• WHY do an RFP? Market had changed, we knew there was opportunity for savings for a large IDN (Hospital System) such as Catholic Healthcare West


Now for the HOW

Team developed a detailed RFP covering areas:

• Service Levels

• Ordering System

• Deliveries

• Information Technology

• General Company Background

• Inventory

• Payment Terms/Discounts

• Retail Pharmacy Offerings

• Additional Services


How continued

•Gathered and included CHW data, account locations, purchase history (spend), current delivery schedules, Average Daily Census, Hospital Bed Sizes, Retail and Clinic data, Current Payment Terms with RFP.

•Weighted questions prior to receiving responses.

•Reviewed responses for clarification, true yes or no responses•Scored Responses


How continued

• Met with each of three major wholesaler companies face to face for demos, clarifications to responses, asked questions

• Ranked without and then again with financials

• Financials done on corporate level.

• Team voted for final decision


How continued

• Decision was sent to Executive Team for approval

• After approval, was brought to a Pharmacy Council for final approval

• Was announced to CHW System


Conversion Planning Stage

•Notification of change to current wholesaler

•Notification to vendors, GPO, other departments

•Interference with other conversions

•Allow at least 3 months for inventory and contract loads at new wholesaler

•Hardware exchange if applicable

•Training at distribution center, tours, personal training at own pharmacy


Change Can Be a Good Thing

Be willing to learn a new ordering system


Training

Have a good time while learning


Training

This is your day, make the most of it


Learn the Wholesaler System

Learn how to customize screensHow to generate reportsUnderstand information on blow out screenHow to build market share reportsHow to run off contract compliance reports


Reality Check

A conversion isn’t a vacation, you must get involved!


Tour Your Local Warehouse

Find out how your products will be packaged, meet the local warehouse personnel


Tour

See the operations


Tour

Don’t be afraid to ask questions outside of the box!


Change Can Be a Good Thing - Preparation

Bring your back up Buyer to the TrainingAsk for all manuals, references to functionality/reporting of ordering systemCSOS Digital Certificate move if using a new computerWork closely with I.T. at your hospital, -Correct version of Java, Syncing of Hand Held devices, Firewalls


Buyer responsibility

•Work with your Accounts Payable – get new remit to’s in place, find out contract payment terms•Train Materials Buyers / Dietary/Radiology•Convert Ordering numbers on templates / Requisitions•Change numbers in automated Dispensing


Speaking of Buyer Responsibility and changes…

I would now like to pass the baton to Allen Sutherland


Buyer responsibility

•Cabinets/CII Safes•Price Catalog for CDM•Ask for any account set up or billing for specialty drug companies.•Convert Hospital ordering systems like Lawson•Save all puchase history with current wholesaler•Convert 340b monthly report


Buyer Responsibility

•Work with local Drug company reps to insure inventory is brought in – don’t compromise market share

•Shelf Labeling – To do or not to do…yourself


Buyer Responsibility

•Logistics on Deliveries

•Notify Pharmacy department of change•Arrange for training of others in your department•Set up own meeting at distribution center


Make Yourself a Check List

•Implementation is only the beginning•Obtain all contact information, cells phones, customer service, emergency and after hour orders.

•Get a copy of wholesaler emergency/disaster plan•Put your standing order on file with new wholesaler


Allow Extra Time

You will be on the phone more than normal


Allow Extra Time

It’s a new ordering system, learn how to read the descriptionsLabels look different tooNot all wholesalers are equal, some package in different package sizes

Make sure if you have to buy a different package that it will fit in your automated dispensing cabinets.

You may have been getting a pack of 6 and now they come as “eaches”.


Allow Extra Time

•Make corrections to shelf labels as you go•Rank your contracts often, it takes time to get all contracts loaded•Learn how to read new invoices / confirmation orders.•Scanning devices work differently•Watch your inventory closely, wholesaler is still making allocation adjustments


Watch Out For

•Run contract compliance reports to ensure best priced, contracted item, change shelf labels•Build relationships with the people that can help you the most, customer service, local rep, local warehouse operations manager•Watch for pricing•Notify wholesaler for individual contracts


Watch Out For

•Some generic products may change on you if you sign up for generic program•Watch for auto sub programs•If an item is not stocked, request with your usage•Watch for packaging of oncology products, refrigerated, controlled substances


And…

•Notify Reverse Distribution (expired meds company) for credit or checks

•Make sure proper paperwork is given and accounts are set up – including auxillary accounts

•Make sure you have access to all of your accounts online, learn about Interdepartment billing.

•Arrange for Levels of Permission online


And don’t forget to

•Get controlled substance signature process •Set up for CSOS•Check for EDI payment set up•Ask about electronic signature approval

Well, maybe not goodbye paper totally…


Notifications

•Get on email lists

•Ask for backorder, recalls, shorts notifications•Ask for a report showing payments on time after a few months•Have bi monthly or monthly calls with wholesaler


Items not in Inventory

•Find out about Drop ship process

•Set in place Backorder process

•Find out how to enter non wholesaler items into wholesaler catalog


Don’t Forget to

•Ask questions about your contract with the wholesaler•Know your contract, at least what is important to you.•Know what they are obligated to•Most importantly report any issues right away – Build a relationship with someone in customer service! •Remember, the contracted delivery service represents their company


Some Problems That May Occur with Delivery Service

Break off security camera with truck, take “evidence” with you (maybe they didn’t see it happen?

Wear shorts that are falling off.

Wear a huge skull and crossbones belt buckle into a hospital with dying people….yeah, that’s a great idea



Leave delivery cart with your CII delivery in hallway while using restroom.

Park anywhere but where they are supposed to park.

It’s a Saturday, why can’t I bring my girlfriend or dog along?



Driver refuses to take back empty totes.

You have to chase down driver because he forgot 222 form. Hope you have fast runners in the pharmacy!

Wholesaler misplaced “pick list”



Road / Bridge closures delay deliveries

Driver “decides” to deliver his route backwards for the “fun of it”.

Truck was too full, so we left off half of your order, that is ok, right?



Language Barriers !


When All Else Fails

Throughout all of the changes, stay positive!


Questions

Carol Goularte Carol Goularte [email protected]

Allen Sutherland Allen Sutherland [email protected]

P R E S E N T E D B Y: How a Pharmacy Buyer Can Survive a Wholesaler Conversion Carol Goularte,...

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