It can be daunting to transition to an entirely new technology for purchasing, receiving and distributing, as well as managing the accounting functions that govern such transactions. A methodical and strategic approach to Enterprise Resource Planning (ERP) Conversion helps to focus a supply chain leader’s time and energy throughout the process. There are many technical and strategic steps needed for successful transition and implementation to occur and no hospital is alike. Each of these steps need to be completed, but are also dependent upon existing facility processes at the start of the transition to the new system. The steps detailed in this article take you through the implementation, from beginning to go-live, and what to expect from your staff and your technology as you plan and execute your ERP Conversion for Supply Chain. 

Set MIN and MAX for Perpetual Areas

Operating rooms and stores need set on-hand MIN (10 days) and MAX (20 days). Establish a process for adjusting orders in real-time to the new MAX until the new MIN and MAX are settled a few months later. If MAX values show an increase in inventory to the current inventory value, consider using the MIN or MAX as a PAR (same as article 1 operational assessment) quantity for the first 90 days until converting to a MIN value for the OR where the PAR will be the MAX value and the MIN will be the minimum quantity needed at all times. Note Unit of Measurement (UOM) must be less than the MAX for the system to be used appropriately in a MIN and MAX model. Also, the MAX should equal the MIN and the purchase UOM added. You can change your days of stock on hand to pursue a true lead time and safety stock model which is most preferred, but if you are dealing with data issues you are most likely going to have to pick a number of days of stock on hand that makes sense. Typically, we found experiences to choose 10 days on hand minimum, and then doubling it to get to the MAX.

Ensure 100-percent accuracy on lowest unit of measurement (LUOM) Each and Each Price for Patient Charges

Perpetual locations, especially the OR, need an established lowest single unit and each price for all items in the master item file and in these locations. If the master item file is not accurate, hire a company specializing in inventory counts to conduct a full physical count; use this database of product counts and visual package identification to fill in missing UOM to calculate each cost for patient charges.

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Author: Charles Taylor