Enhanced capability drives logistics improvements

HealthShare Victoria’s (HSV’s) Logistics team is recording customer service levels well above benchmark targets, achieving significant reductions in backorder lines over the past six months.

The results reflect improvement in order management through HSV’s Distribution Centre, which in turn drives a better result for our customers.

HSV Logistics Director Armin Odobasic has operational responsibility for HSV’s end-to-end logistics services, incorporating warehousing, distribution, transport and supporting functional technology.

“We’re building an efficient, responsive operating model with a view to supporting the function with the right technology platform,” Armin says.

“We’ve enhanced our logistics, data analytics and demand planning expertise to prepare for a significant expansion of our supply chain services,” he says.

“Service levels of 98 per cent, defined as the order fill rate to individual customers, were recorded for October and the first half of November, and backorder lines have been reduced from 1,200 to 200 in the past six months, with further work in train to reduce this further,” he says.

HSV’s first health service customers from the Royal Melbourne Hospital group collectively order 34 per cent of the volume of goods required by public hospitals across Victoria.

Northern Health was one of the Royal Melbourne Hospital services to onboard in 2021.

“We’ve got better peace of mind, knowing we have access to more stock lines and volumes of stock,” says Northern Health Manager Supply Services Colin Newman.

“The assistance of the HSV Clinical Product Advisors is welcomed, particularly in relation to their work on backorders, which have been significantly reduced,” he says.

Bacchus Marsh Hospital and Melton Health recently amalgamated with Western Health and are the most recent services to onboard to HSV’s supply chain services in June 2022.

HSV is building Victoria’s new public health supply chain and our Derrimut Distribution Centre is central to this work, holding more than 2,000 medical and health-related items, with the number of lines and units stocked continually increasing.

“We’re improving our capability across all facets of our operations, and safety and wellbeing are always front of mind,” Armin says.

“We understand and respect the critical nature of the products we supply. Making sure we deliver on our customers’ expectations without fail – while we continue to grow and scale our operations – is our primary focus,” he says.

Pictured: Colin Newman, Manager Supply Services and Erin Kelly, Clinical Product Advisor, both from Northern Health.