1. Sustainability in the Supply Chain WSHMMA Annual Conference April 16-18, 2014 Laura Brannen

2. Description As supply chain leaders, what is your role in the sustainability initiatives of your organization? Do you have an environmentally preferable purchasing (EPP) program in place? Are you aware of the cost saving opportunities within sustainable products and processes? The American Hospital Association’s Sustainability Roadmap will help you improve your processes, collaborate across departments, and cut costs. Learning Objectives – Develop a strategy to implement or improve your EPP program – Identify ways to collaborate across departments to achieve sustainability goals – Understand and identify cost saving opportunities in sustainable products and processes – Learn to navigate and utilize the tools available through the Sustainability Roadmap

3. Overview The AHA Sustainability Roadmap Imagine a comprehensive toolkit for – Environmentally Preferable Purchasing Strategies – Key Cost Saving Opportunities

4. The Roadmap Imagine a toolkit contributed by expertise from across these PMGs AHA Sustainability Roadmap www.sustainabilityroadmap.org

6. The Roadmap What would this look like? A consolidated resource warehouse Practical implementation tools (PIMs)PIMs

7. The Roadmap The Roadmap aims to provide: Continuous improvement of tools through user feedback A platform for knowledge exchange – Hospital staff – Vendors and industry experts

8. Stakeholders Roadmap Allies – Adopt PIMs – Engage in a conversation Business Partners – Contribute expertise Roadmap Task Force Volunteers – Vet materials – Drive strategy

9. The Platform

11. The Site

13. The Roadmap Participate! Become an Ally Utilize and provide feedback on the PIMs and resourcesPIMs Submit a case study or PIM Encourage your vendors to submit case studies and PIMs Join the ListservListserv

14. AHRMM Task Force Your peers and business partners working to develop sustainability tools

15. AHRMM Task Force Discusses and develops sustainability strategies – What does Cost-Quality-Outcomes mean for sustainability? – How can supply chain work more closely with vendors to streamline sustainability efforts? Develops tools for purchasing staff: The Roadmap’s Performance Improvement measures Check out the task force online!

16. Environmentally Preferable Purchasing Strategies

17. EPP Strategies Adopt a facility wide environmentally preferable purchasing policy (EPP) Incorporate sustainability into your value analysis team/process Maintain a list of chemicals/materials of concern Collaborate with other departments Leverage the expertise of your vendors and GPOs

18. EPP Strategies Adopt a facility wide environmentally preferable purchasing policy (EPP) Environmental, human and financial health considerations (chemicals, waste, water, energy, IAQ, etc.) Total cost of ownership, life-cycle costing, and Cost Quality Outcomes! Sharing expertise between manufacturers, suppliers, vendors, and GPOs Responsibility: contract administrators & value analysis teams List KPIs for each contract

19. Key Performance Indicators – what are they anyway?

20. LCI, TCO, CQO Life Cycle Costing Total cost of ownership (TCO) Cost-quality-outcomes (CQO)

21. EPP Strategies Incorporate sustainability into your value analysis team/process Identify, vet, and recommend green products and services TCO -- CQO Standardized questions Rethinking product costs and attributes Verifying product claims

22. EPP Strategies Collaborate with other departments EVS End of life disposal costs, cleaning attributes Safety Haz/mat, IAQ, Joint Commission, regulations Infection Control Re-usable products, cleaning chemicals

23. EPP Strategies Collaborate with other departments Facilities Electrical/water/maintenance costs Design & Construction Energy/water/operations/ materials/resources Food Service Local/organic/reusable

24. EPP Strategies Leverage the expertise of your vendors and GPOs Resources, tools and support mechanisms – 50 Ways to Go Green Checklist – Chemical Policy Statement – PVC-DEHP Elimination Resource Guide – SUD Reprocessing Toolkit Audits and assessments – Utilize more reusable totes and shipping containers – Reduce/eliminate packaging or take it back for re-use – Deliver all printers and copiers set for double sided and black/white copying and printing GPO product evaluation/steering committee participation “Green Product Guide” – How much of your purchasing qualifies as “green”? Vendor-specific sustainability programs (e.g. JnJ’s Earthwards)

25. EPP Strategies Example EPP Initiatives Maintain organization-wide mercury-free policies Install low-flow flush fixtures Switch to reusable sharps containers Reduce paper usage and sustainable printing standards Utilize sustainable carpet Purchase EPEAT computers and monitors Develop energy-efficient lighting standards Reprocess approved single-use devices Purchase Energy Star rate office equipment and appliances Choose sustainable textiles Utilize microfiber cloths and mops Eliminate/minimize packaging or take back for re-use Invest in re-usable options (toters, linens, OR products) Develop take-back/leasing programs (copiers, TV’s, equip.)

26. Key Cost Saving Opportunities

27. Cost Saving Opportunities Single Use Device Reprocessing (SUD) Gap analysis – surgical and medical devices Develop business case Gain senior leadership, physician, surgeon, nursing support Implementation plan/process Communication & education Measurement & reporting

28. Cost Saving Opportunities SUD Reprocessing – Case Study

29. Cost Saving Opportunities Reusable Sharps Containers Vendor audit Cost/benefit analysis Implementation plan/process – Replacement of disposal with re-usable Collection process – internal vs. external Communication & education Measurement & Reporting

30. Cost Saving Opportunities Reusable Sharps Container - Case Study

31. Summary The Roadmap is here to help you! www.sustainabilityroadmap.org EPP Strategies: Incorporate sustainability criteria into your existing purchasing practices Key Cost Saving Opportunities: Identify and switch to products with a lower total cost of ownership

32. Thank you! www.sustainabilityroadmap.org roadmap@mazzetti.com