HSV logistics service levels scaling up

HSV’s Logistics function is taking a customer-centric approach at the Derrimut Distribution Centre (DC) to improving service delivery for Victoria’s public health services.

“Over the past two months we recorded service levels of 98 percent – this is the rate of individual customer orders filled by the team,” says HSV Director Logistics Armin Odobasic.

“We’re building an efficient, responsive operating model and these results show our significant progress to improve customer outcomes,” he says.

An important part of the team’s approach is working closely with customers to ensure a good understanding of hospital and DC activity that may affect service levels.

“We meet with key customers each fortnight to make sure we’re aware of and can respond to any changes affecting service levels, and our customer service team checks in each month with individual health services to stay on top of their needs,” says Armin. 

“Our priority is to make sure we always have enough stock available at the right time, and then scale up our operating model so that we’re ready to deliver for customers right across Victoria.”

HSV currently provides supply chain services to the Royal Melbourne Hospital and health services within the Melbourne Health cluster – which collectively order 30 per cent of health-related goods used by Victoria’s public hospitals – and is now preparing to expand these services to more customers across the state.

The HSV Supply Chain Logistics team is focusing on improving data, increasing customer engagement, and building the system at scale.

Processes put in place to ensure stock availability include frequent and detailed analysis of supplier performance levels, lead times and consumption data, and identifying substitute products so alternative items can be supplied if necessary.

“These initiatives help us keep tabs on all items stocked at the DC, and by working with our demand and supply planning team and clinical product advisor experts, we know what alternative items can be supplied should a primary item be unavailable,” says Armin.  

“We also know through twice-daily reconciliation of our open orders and daily reporting of the products coming in when to act so that our hospital customers get the products they need in their next scheduled delivery.”  

Over the longer term, the team is preparing for a significant expansion of HSV’s supply chain services by working with large suppliers to improve delivery performance and undertaking analysis to align the DC’s stock range with the needs of future customers. 

In undertaking detailed analysis of the products and services being delivered, HSV is able to better understand the next steps to scale up operations for statewide service provision.