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Mayo Clinic’s Supply Chain Transformational Change

From 2016-2018 the Mayo Clinic implemented a new data management program called Supply Plus. Supply Plus was the solution to an evolving (and sometimes inefficient) supply chain, and the inherent issues associated with a data-intensive management system that was located across several states.

Mayo Clinic, founded in Rochester, MN, in 1862, has 68,000 employees in over 116 locations, 4,800 doctors, performed 133,000 surgeries in 2018, and had 1.3 million patients. Presenting at the WERC Annual Conference for Logistics Professionals in Columbus, OH, last week, Linda Akiens-Castiglioni, Todd Pederson and Ted Pletta of Mayo Clinic, said the organization is highly collaborative and team-based with the needs of the patient coming first – and the patient experience is expected to be the same at all locations.

The supply chain in such a large organization is diverse, and multiple locations in different states created barriers to inventory management. There is one major inventory center in Rochester, with 670 employees in the Mayo Clinic supply chain, and 100,000 SKUs (28,000 of which are for surgery). The supply chain generates revenue by outsourcing to other medical organizations through contract purchasing – and 50% of that revenue is generated from the Rochester location.

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