Toward joint Medical Logistics 2010 and beyond: process innovation and redesign of Class VIII supply chain at a medical logistics company

Abstract

The purpose of this thesis is to evaluate current Class VIII supply chain procedures at a U.S. Medical Logistics Company (Med Log Co), process map the "as is" baseline process and propose possible "to be" process redesign alternatives that will possibly improve efficiency and produce long-term cost savings. To perform this analysis, the 1st Med Log Co at Camp Pendleton, CA was chosen. The assessment of their "as is" process includes a historical background on medical logistics within the Department of Defense, a comprehensive material logistics literature review, site visits, personnel interviews, process mapping of the baseline "as is" process, and proposal of two redesign alternatives for the "to be" process. A comprehensive analysis was conducted using Thomas Davenport's Process Innovation Framework and quantitative measurements were obtained using the Knowledge-based Organizational Process Redesign (KOPeR) methodology to diagnosis existing pathologies. KOPeR measurements indicate that the 1st Med Log Co's existing "as is" process is a fragmented, mostly manual procurement process that can be innovated now using information technology as a process enabler. Our results indicate that by formally injecting the use of electronic mail and shared databases into the "as is" procurement process an immediate impact can be realized. Further efficiency and cost savings can be accomplished by coupling the injection of information technology with a web- based end-to-end procurement process that assigns a case manager to the "to be" process.