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National Medical Logistics Newsletter
July 2009
In This Issue
Demand Planning
The Talent Conundrum
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Dear Friends, 
 
This month we continue our series on sales and operations planning by focusing on demand planning and ways to improve that process.  We also share a few thoughts on some of the challenges you may be facing in hiring.  Even in an "employer's market," there are still tough questions to consider as you evaluate the many candidates available as a result of the troubled economy.
As you read, let us know if National Medical Logistics can help you with these or other topics.  To contact us now, click here.
 
Sincerely,
 
National Medical Logistics
  Demand Planning
Part 2 of a 4 part Sales & Operations Planning Series

In Part 1 of this series, we discussed the concept of Sales & Operations Planning, an integrated and collaborative approach to enhanced requirements planning to improved service levels.  Demand Planning is the first of the three integrated S&OP components, followed by the Inventory Plan and the Supply Plan.
 
The management of the healthcare supply-chain is still fairly characterized as reactive. Purchase orders and requisitions go out based on PAR counts, Min/Max settings and on-demand requirements.  The distributor and manufacturers are expected to immediately respond with high-fill rates.  They have to be prepared to respond to demand variations with additional inventory known as safety-stock.  The outcome of an effective demand planning process targets normal cycle stock and safety or buffer stock, not to mention the increasingly perishable nature of supplies, either through expiration or obsolescence.  
 
When it's all said and done, demand planning is still a guess.  The more disciplined the process with high utilization of demand planning tools, the more educated and accurate the guess. Each item has its own demand dynamic, either with demand steady as a rock, as dependable as a Swiss chronograph, or wildly erratic like trying to follow the flight path of a fly or mosquito. You know it will land - just don't know where and when.
 
Variation or error around demand is really what we're scoping with demand planning methodology. To read more click here.
  The Talent Conundrum 
 
Many of us remember a time not that long ago when hiring managers struggled to find qualified applicants to fill supply chain positions, especially senior level managers.  What a difference a recession makes!
 
Sadly, the downturn in the economy has forced many companies to reduce their payrolls and in some cases, bankruptcy has put entire companies on the street.  This has resulted in a surge of available talent in the marketplace.  Now, recruiters and hiring professionals report hundreds of applications for all levels of positions.  Similarly, very tenured, highly qualified individuals are applying for positions with significantly lower responsibility - and compensation.
 
Many of those seeking work have shown an interest in moving over to healthcare because of the relative strength our industry has shown during this downturn.  Forecasts project continued growth and not surprisingly, casualties from less fortunate industries, such as retail and manufacturing, are looking for a bit of a "safe harbor."
 
This new hiring landscape has raised some interesting questions among healthcare supply chain professions.  How well can logistics and distribution professionals transfer their skills from other industries to healthcare?  Do you take advantage of the talent imbalance and "over hire" tenured, seemingly over-qualified non-healthcare supply chain people?  If your projections show that you're going to need additional people down the road, should you go ahead and hire now while the talent pool is rich, even thought it may mean that you are somewhat overstaffed for a while?  To read more, click here.
 
    Copyright ©2009 National Medical Logistics, LLC. All Rights Reserved.