Supply Chain World - Fall 2017 - 90

healthcare covenant healthcare
www.covenanthealthcare.com / Revenue: $621 million / HQ: Saginaw, Mich. / Employees: 4,800 / Specialty: Independent healthcare network / Mike Rossi, director of
supply chain: "As an independent organization, we have the ability to craft solutions with more flexibility and creativity than larger systems."

Flexible and Creative
Covenant HealthCare leans into the supply chain challenges
of the facilities it operates. By Jim Harris
With more than 100
years of history, Covenant
HealthCare is an independent, locally owned and
operated organization supporting multiple locations
MIKE ROSSI
throughout mid-Michigan.
director of supply
chain
This status has both advantages and challenges.
"Having to support supply chain
management in an older infrastructure can be a bit of a challenge,
but what I think is nice about our
environment here, especially from
a supply chain leader perspective,
is that as an independent organization we have the ability to craft
solutions with more flexibility and
creativity than larger systems,"
explains Mike Rossi, director of
supply chain for the Saginaw,
Mich.-based health system.
Covenant HealthCare formed in
1998 following the merger of two
long-standing local hospitals into
a single entity. Both hospitals were
established in the late 1800s and
underwent a number of building
projects and renovations in the
decades before the merger.
Soon after merging, Covenant HealthCare closed an
18,000-square-foot warehouse
used to store and distribute supplies, transitioning to a stockless
supply model.
The hospital receives shipments
six days a week from healthcare
logistics provider and supplier
Owens&Minor, which picks the
90

Supply Chain World FALL 2017

items and places them into totes.
The totes, which are labeled based
on the nursing unit or floor where
they will be used, are delivered
by Covenant supply chain staff to
their destination.
Supplies are replenished in one
of three places: an Omnicell automated supply dispensing cabinet;
a wall-mounted bin system; or a
wire cart. Some of the hospitals'
nursing units use all three storage
methods, Rossi notes.
Covenant HealthCare uses the

As part of its lean management,
Covenant has conducted 13
improvement events to date,
including working directly with
internal customer groups.

Infor/Lawson enterprise resource
planning (ERP) system to automate its stocking and ordering
processes. For the items stocked in
carts and bins, staff members use
radio-frequency (RF) handheld
devices to scan and count supplies
needed in each nursing unit or
another part of the hospital. This
information is then electronically
transmitted to Owens&Minor.
Nurses using the Omnicell system press a button when they take
an item, which in turn decrements



Table of Contents for the Digital Edition of Supply Chain World - Fall 2017

Contents
Supply Chain World - Fall 2017 - Cover1
Supply Chain World - Fall 2017 - Cover2
Supply Chain World - Fall 2017 - 1
Supply Chain World - Fall 2017 - Contents
Supply Chain World - Fall 2017 - 3
Supply Chain World - Fall 2017 - 4
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Supply Chain World - Fall 2017 - Cover3
Supply Chain World - Fall 2017 - Cover4
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