The Impact of Supply Chain Transformation |48 in Alberta Health Services, Canada .
having the ability to properly measure and benchmark as a priority for supply chain. This is described by a leader in operations: We have KPIs for the operations that we keep, and KPIs that we look at regularly to see where the spikes are, and how we manage our business. … For our warehouses, the pick line [the process of how products are “picked” from the warehouse and sent to hospitals or clinical programs] per hour for the carts—it’s how many locators we have. We did a benchmarking across the province on how much it costs to manage one item on one cart. We’ve got about 37,000 [stock-keeping units] across the province. I was trying to do a staffing comparison to see where the efficiencies were, and all the different models, and we broke it down to the cost per locator, and were able to see [where we are]. The CPSM is required to achieve specific performance targets annually. The resources to fund the team are determined on the basis of their success in meeting the priority targets each year. In 2016–2017, the operating budget to support the CPSM team was $78 million, an amount that supported 881.5 FTEs, at 354 sites across the province. The portion of this budget allocated to the supply chain transformation described in this case is $3 million annually. The team working on the supply chain processes focus on data management and reporting initiatives, and system and process transformation specialists and project managers. The investment made to advance supply chain transformation in Alberta is described in Table 5. The one infrastructure investment in the strategy accounted for the cost to implement the Oracle ERP system across the province for $26,000,000. It is notable that Oracle implementation was limited whereby the inventory and warehouse management system was only implemented in one southern region (Calgary). The plan is to phase in the remaining ERP implementation of inventory systems across the province when the EPIC Clinical Information system implementation begins, anticipated in 2019.