1. Lawson Healthcare Solutions Optimization of Key Resources Forms a Foundation for Excellent Patient Care

2. Enterprise Resource Management Offers solutions to the 3 critical areas of Resource Management: Workforce: Lawson Human Capital Management Supplies: Lawson Supply Chain Management Capital: Lawson Financials

3. Lawson Supply Chain Management Provides the latest inventory management tools to the health care system Compatible with U.N. Standard Products and Services Code® (UNSPSC) and GS1 Leader in industry –60% of the top 50 Integrated Delivery Networks –33% market share (hospitals with 250+ beds) - 4,000 customers in 40 countries, including 100 health care providers Competitors include IBM/Cognos, McKesson and Oracle

4. Data Flow Downstream SuppliersOracle, Healthquest, Crystal Reports Lawson Materials Management Information System (MMIS) UsersAdmin Upstream SuppliersMaster File

5. Materials Management is the branch of logistics that deals with the tangible components of a supply chain... this covers acquisition, quality control, purchasing and ordering …, and the standards involved in ordering, shipping, and warehousing Wikipedia supply chainquality control Manufacturers Supplies Distributors Cardinal Direct shipping Facility Mailroom Receiving Warehouse Patients OR Floors Supply room

6. Traditional/ Legacy Model Large Inventory of Items maintained in hospital warehouse and storage areas in hospital. Large staff maintains inventory and searches for items as they are requested by units ESI/ NOVA software utilized to place orders, manage stock

7. Process Users’ Needs Orders Placed Items Shipped Items Received Items Distributed

8. Users needs→→ Requesting Items Tasks – Catalog of items – Purchase Orders Lawson Solution= Materials Management Inventory System (MMIS) – On-line, searchable database of available items – Detailed descriptions of products from supplier – Each item contains all necessary fields to ensure order accuracy – Every item has an associated vendor contract to ensure pricing accuracy

9. Requesting Items Challenges Disconnect between user of items and supply technicians Lawson Solutions = Requisition Self-Service (RSS) Orders placed directly by users Enhances accuracy and cost control UAB – – over 2000 employees trained – 500 are regular users

10. Requesting Items- Par Inventory Tasks – Establish and adjust par inventory goals for units and storage areas – Determine items used on a routine basis – Place orders to replenish items, i.e. maintain par levels La wson Solution – Maintains electronic database of par levels – Supports hand held scanners – Scanners generate automated orders

11. Placing Orders Tasks Purchase orders faxed to suppliers Lawson Solutions RSS and MMIS support Electronic Data Interchange (EDI) through Global Health Exchange (GHX) – Enhances productivity – Creates an electronic trail of orders – Facilitates payment – Allows future use of GS1 standards Lawson Electronic Fax Integrator

12. Shipping & Receiving Tasks Cross reference items with orders Receipt of items from Cardinal, other distributors and delivery providers (Fed- Ex, UPS, USPS) Update Accounts Receivable Lawson solutions Electronic matching of orders and deliveries Maintains preset palate unloading by final destination MMIS interfaces with UAB Finance’s Oracle enterprise

13. Distribution Tasks Deliver items Track location of items Respond to recalls Monitor expirations Lawson Solutions MMIS includes final destination information on all items MMIS identifier specifies deliverey location Facilitates locating recalled and expired items

14. Improved Patient Care Right Item/Right Patient/Right TimeEliminates Waste Decreased Costs “Just-In Time” InventoryFewer Staff Improved Accuracy and Enhanced Productivity MMISRSS LAWSON MATERIALS MANAGEMENT