Employing Value Analysis Analytics to Get Your Way

Using stats, figures or value analysis analytics to garner support for your supply chain ideas or initiatives should be a first, not a last tactic, to get your way in the supply chain business. Why?  Stats, figures or analytics resonate better with busy people than just lofty words or general information!

For instance, if we told you that your hospital’s exam glove usage had increased over the last four quarters, you would probably yawn at this information. However, if we showed you a chart that reveals graphically how your exam glove usage had escalated from $1.59 per adjusted patient day to $2.62 (a 65% jump) over four quarters, I can assure you that we would get your attention. This is because using stats, figures or value analysis analytics satisfies the human need for clarity, precision and concreteness.  

If you can combine stats, figures or analytics with benchmarks, you now have an all-out winning formula. Back to my example; a typical benchmark for exam glove usage would be about .95 cents per adjusted patient day. In our example above, this would mean that this hypothetical hospital is really 176% higher in their glove usage than their peers. Now, this is a statistic that will get anyone’s attention, wouldn’t you agree?

To summarize our point here, the main reason for you to employ stats, figures or value analysis analytics is to help you to start a dialog (e.g., who, what, when, where and why their practices are different) with your department heads and managers on their utilization misalignments. Its purpose is not to win the war of words and information, but to have them investigate these anomalies in their supply streams. 

What better way than to get your department heads and managers engaged with the stats, figures and value analysis analytics, rather than have them fight you needlessly and endlessly on principle, opinion or their beliefs, when the numbers can lead the way to success.