The old idiom “You Can’t Make a Silk Purse Out of Sows’ Ears” has been used for years to discourage inventiveness and enterprise (http://tinyurl.com/qf3fv7d). This phrase comes to mind when I hear LTC Pharmacy Managers describe their courier expense. They describe situations where they cannot manage stops and courier delivery expenses with the materials that they on hand.
LTC Pharmacy Managers operate complex operations, but often are perplexed by courier activity and expense. Drug dispensing and detailed pricing tools allow the pharmacy to generate detailed reports on patient care, but delivery costs is a topic where managers get stuck.
I have discovered that LTC Pharmacy Managers avoid the courier delivery topic because internal and external meetings escalate out of control. Finance questions number of courier deliveries and sometimes the courier programs yield fewer stops. The LTC Pharmacy manager cannot explained why, but takes credit for the rare occasion when courier deliveries appear to be in control.
LTC Pharmacy managers also avoid courier delivery conversation with Facility mangers who complain about service level agreements (SLAs), courier driver appearance, and prescription packaging. Delivery is a topic where LTC Pharmacy managers face pressure from every side.
I am asked: How can Supply Chain Finance can help?
This question always excites me, because we can help. We can convert wasted resources into a valuable asset that LTC Pharmacy Managers use to enhance their delivery operations. I can imagine their next meeting, after we engage, where the LTC Pharmacy Manager answers Finance questions with facts and authority. All without huge investments.
Existing resources enable Supply Chain Finance to manage courier invoices, validate courier stops to charges and optimize stops. Basically, we are using the ‘sow’s ear’ and creating a ‘silk purse.’