East Texas Medical Center Cost Saving Solution

How TRIOSE Provided East Texas Medical Center an easy-to-implement, cost-saving solution that brought visibility through exceptional reporting.

THE PROBLEM

East Texas Medical Center (ETMC) is a non-profit health system that operates across 13 different counties in East Texas. Providing healthcare in 12 hospitals with 40 total clinics, the ETMC Regional Healthcare System is a seamless system of primary, secondary, and tertiary healthcare facilities that provides their services throughout East Texas. 

As a healthcare provider, ETMC already faced a tough job ensuring their physicians have the necessary tools to do great work. On top of that, the healthcare landscape continues to be scrutinized, so healthcare providers are increasingly looking to lower costs without compromising patient care. ETMC was also in the midst of a very important computer upgrade to their purchasing system that was demanding their focus. 

TRIOSE was able help ETMC identify the benefits of implementing a freight management program, but Ken Mayfield, ETMC’s Corporate ORD Manager, was initially concerned about the extra manpower that it would take to implement the program. This was not the first time a company promised ETMC that implementation would be easy, and the purchasing system upgrade had the department stretched thin. 

“We are always looking to find ways to reduce costs and become more efficient. TRIOSE promised to help us with both, and allowed us to stay focused on our other priority projects,” Mayfield comments.

Bringing visibility to the overall freight expense of receiving supplies was just one component that ETMC was interested in understanding. ETMC wanted the program to be implemented quickly while also providing additional levels of visibility and opportunity for improvements.

THE SOLUTION

First, TRIOSE collaborated closely with ETMC to ensure the freight management solutions would meet their needs and began to gather historical data, doing the heavy lifting to make sure they had an accurate baseline and understanding of ETMC’s needs. “Once TRIOSE had the information they needed from us, they were very efficient,” stated Kevin. 

After analyzing ETMC’s data, TRIOSE identified the suppliers that could be impacted by a freight management program and started a rigorous implementation strategy with their vendors. By leveraging their own vendor relationships and expertise, TRIOSE was able to implement nearly 500 vendors in the first 90 days, representing 71% of the freight spend that could be impacted by a freight program for immediate savings to the health system. Once TRIOSE began receiving and analyzing the shipping detail from these vendors, transparent reporting was set up so ETMC could understand this data more easily. ETMC was able to view which suppliers were participating and how frequently, the service levels that were being requested for shipping, as well as cost per shipment and other important metrics. As ETMC’s logistics partner, TRIOSE drilled down into the data to identify actionable opportunities that could further create efficiencies and drive down cost. In addition, TRIOSE ensured those 500 vendors were complying with the instructions and worked with them on any necessary corrective action. 

Neal Melton, Purchasing Supervisor, shared, “In our most recent review of the data, we have seen a 47% decrease in our cost per shipments. Thanks to the exceptional reporting provided by TRIOSE, this is no longer an initiative I have to worry about.”

Freight optimization is an opportunity for many healthcare providers like ETMC. Having outside help like TRIOSE to provide visibility and manage the freight program allows ETMC to stay focused on patient care, all while managing cost. Just showing, once again, that “Caring” isn’t something we say at TRIOSE. We live it. 

CARING FOR YOU

TRIOSE delivers world-class logistics solutions for hospitals, health systems and healthcare networks nationwide. Our goal is to meet all of your supply chain requirements and manage all the components at the lowest possible cost. Our implementation team has converted hundreds of hospitals from our competitors, so we have the experience to make your transition pain-free. By providing visibility of information, measurable results, and overall control of the logistics process, TRIOSE can help you optimize savings while prioritizing patient care.