Let’s make it simple.

January 11, 2007 at 3:41 pm Leave a comment

I love coffee but don’t you hate it when you walk into Starbucks and order a large skim latte and they look at you like you are speaking a different language?  After a long pause they say “oh you mean a venti non-fat latte”.  Tall is small, grande is medium, and venti is large – that’s obvious. 

Why can’t simple things just be simple?   When I hear that business is taking a step in the direction of making things universal and less complicated, I get excited. 

I would like to thank the Association for Healthcare Resource & Materials Management (AHRMM) Board of Directors for recently declaring their support of the use of supply chain standards in all transactions between trading partners. They specifically recommended use of the United Nations Standard Products and Services Code®(UNSPSC®) to provide an open, global multi-sector standard for efficient, accurate classification of products and services.

“AHRMM selected these standards because they provide for a global solution and touch every product in the world, not just in the med-surg field,” notes Robert Perry, president of AHRMM. “Inefficiencies in the supply chain cost the industry billions of dollars each year. We need to adopt the standards that govern our trades and bring even more value to our patients, hospitals and partners.”

AHRMM advocates for every manufacturer, distributor, provider, and materials management information system vendor to prepare their company and trading partners to adopt these standards.

One of the most important aspects of using a UNSPSC standard is that the product and services codes are not industry specific.  Hospitals purchase an enormous array of products and services which span medical, technology, construction, as well as standard everyday business needs like office supplies and facilities needs.

Adopting an international standard will allow highly regulated industries like healthcare to correctly procure, manage, and assess vendors.  Healthcare providers will be able to evaluate their purchases across their company regardless of the specialty of supplier.  UNSPSC will also allow for industries to develop social analysis of suppliers and company performance and regulatory compliance issues common to a set of products or services.

It is a step in the right direction.  Now if we could just curb the use of acronyms.

-Andy Monin

Entry filed under: Uncategorized.

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