Did You Know That The #1 is the Worst Number in Supply Chain Management

I’m sure you remember the lyrics “One is the loneliest numbers” from a song by Three Dog Night. But did you also know that the #1 is the worst number in supply chain management?  This is because one of anything limits you on your options, insights and alternatives for any decision you need to make. Here are some examples of having only one of anything in your supply chain business can be counterproductive: 

  1. One Quote: If you only have one quote, then you have only had one reference point to evaluate the breath, depth or alternatives available to you to improve your cost, quality, safety, etc. of your healthcare organization’s operations. That’s why you should always asked for a minimum of three quotes for any proposal you are contemplating.
  2. One Benchmark: We always recommend that you triangulate with peer, historical and internal benchmarks, as opposed to having just one benchmark to rely on. This then will enable you to: (1) determine if your benchmarks are correct, (2) convince your customers that your benchmarks are on target and (3) give you confidence that your numbers are bullet proof.
  3. One Value Analysis Alternative: We always say, “don’t stop at your first best alternative” when you identify savings in value analysis because your chances are better than 50/50 that there are lower cost alternatives that you have overlooked if you don’t search for at least two more value analysis alternatives.

As you can see with these examples, the #1 can be very hazardous to your healthcare organization’s financial health if you don’t look for more than one option, insight and alternative for every supply chain decision that you must make. Remember, to have only one of anything in your supply chain business is to shortchange yourself and your healthcare organization of better choices than you thought possible.

 

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