1. Lawson Healthcare Solutions Optimization of Key Resources Forms a Foundation for Excellent Patient Care

2. Enterprise Resource Management Offers solutions to the 3 critical areas of Resource Management: Workforce: Lawson Human Capital Management Supplies: Lawson Supply Chain Management Capital: Lawson Financials

3. Background: Materials Management Materials Management is the branch of logistics that deals with the tangible components of a supply chain. Specifically, this covers the acquisition of spare parts and replacements, quality control of purchasing and ordering such parts, and the standards involved in ordering, shipping, and warehousing the said parts.supply chainquality control Wikipedia

4. Supply Chain Manufacturers Supplies Distributors Cardinal Direct shipping Facility Mailroom Receiving Warehouse Patients OR Floors Supply room

5. Traditional/ Legacy Model Large Inventory of Items maintained in hospital warehouse and storage areas in hospital. Large staff maintains inventory and searches for items as they are requested by units ESI/ NOVA software utilized to place orders, manage stock

6. Process Users Needs Orders Placed Items Shipped Items Received Items Distributed

7. Users needs Requesting Items Tasks – Catalog of items Multiple names and item numbers for a given item Outdated paper catalogs – Purchase Orders Paper Time-consuming Lost orders/tracking Approval process – Purchasing authority Lawson Solution= Materials Management Inventory System (MMIS) – On-line, searchable database of available items – Detailed descriptions of products from supplier – Each item contains all necessary fields to ensure order accuracy – Every item has an associated vendor contract to ensure pricing accuracy

8. Requesting Items Challenges Disconnect between user of items and supply technicians – Error prone – slow Lawson Solutions = Requisition Self-Service (RSS) Any employee can be trained and authorized to access the MMIS and place orders directly Accuracy and cost control enhanced by associated product details and vendor contracts At UAB, over 2000 employees have been trained and approximately 500 are regular users

9. Requesting Items- Par Inventory Tasks – Establish and adjust par inventory goals for units and storage areas – Determine items used on a routine basis – Place orders to replenish items, i.e. maintain par levels La wson Solution – Maintains electronic database of par levels Adjustable Generates reports to flag insufficient levels – Supports hand held scanners used by counters who scan remaining items on units – Scanners sync results to main system and generate automated orders to replenish items

10. Placing Orders Tasks Purchase orders faxed to suppliers – Slow – Potential for lost orders – Minimal tracking Lawson Solutions RSS and MMIS support Electronic Data Interchange (EDI) and GHX standards – Enhances productivity and shortens order/receipt turnaround with GLN universal address identifier – Electronic trail of orders – Allows future use of GS1 standards Lawson Electronic Fax Integrator – Converts fax orders to EDI

11. Shipping & Receiving Tasks Cross reference items with orders to confirm accurate fulfillment and maintain quality assurance Receipt of items from Cardinal, other distributors and delivery providers (Fed- Ex, UPS, USPS) Update Accounts Receivable to close order/receipt/payment loop Lawson solutions MMIS allows efficient matching of orders and deliveries by supply technicians in receiving center Maintains preset palate unloading of cardinal deliveries by final destination MMIS interfaces with UAB Finances Oracle enterprise

12. Distribution Tasks Deliver items to floors, units, OR and supply rooms Track location of items ordered but not distributed Respond to recalls to remove items Monitor expirations of items Lawson Solutions MMIS includes final destination information on all orders to allow for efficient distribution by hospital personnel Any items MMIS identifier can be used to determine where it should be delivered Facilitates locating recalled and expired items

13. Lawson Solutions-Overview Provides the latest inventory management tools to the health care system Integrated MMIS allows all users to access system – Clinical staff and unit managers to place orders – Supply Staff to receive and distribute orders – Managers to track orders and costs – Suppliers to utilize EDI purchases

14. Lawson Solutions-Overview Upstream MMIS is fed data from suppliers of equipment and downstream it interfaces with UABs Oracle systems and Crystal Reports to serve the needs of the Finance, Accounting, Accounts Payable and Administration. Data is entered into a master file for each product which contains multiple identifiers and links to a vendor agreement which specifies processing

15. Lawson Solutions-Overview Leader in industry with 4,000 customers in 40 countries, including 100 health care providers Competitors include IBM/Cognos, McKesson and Oracle Compatible with United Nations Standard Products and Services Code® (UNSPSC®), currently used at UAB and GS1, the standard currently advocated by AHRMM to promote safe and efficient supply chain management

16. Improved Patient Care Right Item/Right Patient/Right TimeEliminates Waste Decreased Costs Just-In Time InventoryFewer Staff Improved Accuracy and Enhanced Productivity MMISRSS LAWSON MATERIALS MANAGEMENT