Our process

In a logical unit of measure environment, the majority of requisitions will be transmitted electronically to a Cardinal Health distribution center, where Cardinal Health staff pick orders by unit of issue and pack those orders by delivery location. The supplies are delivered to the hospital receiving dock and the hospital Materials staff transports those materials directly to end users at the point of care.

ValueLink^® Services allows the hospital Materials Management department to utilize Cardinal Health as their “offsite” warehouse, even though they no longer bear the holding costs of that inventory. Inventory levels and labor expenses, associated with picking, packing, purchasing and inventory control, are significantly reduced. ValueLink^® Services also provides the distribution platform for better systems connectivity – allowing for sophisticated decision management tools.

Benefits

• Guaranteed fill rates - contracted at 98%
• Inventory reductions and ongoing holding cost savings
• Reduction in freight expense on direct shipments through OptiFreight^® Logistics
• Reduction of internal touchpoints
• Optimized par inventory
• Increased product availability at the point of care
• Increased satisfaction of clinical staff
• Labor & purchasing efficiencies

View a comparison of traditional vs. dynamic (ValueLink^® Services) supply chain

Traditionally, supplies flow from the distributor to the hospital loading dock. There are many disadvantages to ending the supply chain here because it does not ensure that product gets delivered directly where and when it is needed.

Traditional supply chain – before ValueLink^® Services

When product is delivered beyond the dock to the point of use, the result is less waiting time for product availability, less handling of the product, less labor costs, and more consistent product delivery.

Dynamic supply chain – after ValueLink^® Services