Oak Street Health

OAK STREET HEALTH

The Challenge: Decentralized Ordering

Before implementing Envi® and Non-Acute Procurement, each Oak Street Health facility ordered supplies directly through their primary distributor’s website without centralized oversight.
“Our clinical supplies come from a single primary distributor. Before Envi, the centers were just able to go onto the distributor’s site and order as needed,” said Karen Wnek, Sr. Manager of Inventory Management at Oak Street Health.
During the pandemic, Oak Street Health engaged consultants to evaluate their ordering and supply management processes, and a clear goal emerged. “The team identified ways that we could reduce cost and staff time around our supply ordering and management processes by implementing Envi and Non-Acute Procurement,” said Wnek.

Most sites use vendor punch-out to order from their distributor, while Lewis and team look to create a more established formulary to support purchasing. “In the future, our buyers will be able to order as needed, but from a more consolidated list.”

Enterprise Software Meets Centralized Procurement

Oak Street Health implemented both Envi and Non-Acute Procurement simultaneously, creating a streamlined and standardized purchasing process. This included the establishment of a formulary that limits ordering to approved items only, along with specialized formularies for sites offering additional services such as podiatry. An approval workflow was put in place based on dollar amount thresholds, and daily order processing was enabled through EDI integration with their distributor.

The streamlined workflow has centers submit orders through Envi, which are then reviewed by the Procurement team. “Every day at one o’clock we go through the pending orders, ensure pricing and availability, submit for approvals if needed, and seamlessly send approved orders to the distributor via EDI,” explains Julia Schaa from the Non-Acute Procurement team. Orders requiring approval are routed to the appropriate practice manager based on preset thresholds.

Responsive Support, Lean Staffing

With a lean internal Inventory Management team overseeing 250+ facilities, Wnek relies on the Non-Acute Procurement team’s responsiveness. “It really helps to have their support,” Wnek noted. “Their responsiveness and helpfulness have been a game changer.”

The partnership excels at solving everyday logistical challenges. “One problem that happens probably every other day is a staff member saying, ‘We didn’t get this order. Where is that order?’ Our Procurement team is on it immediately. They’ll reach out to our distributor – there’s a great working relationship – and it’s all done in such a timely manner. It really helps when you’re a team of one.”

Improved Cost Management

The Procurement team works closely with Oak Street Health’s primary distributor to secure optimal pricing and catch any discrepancies. “Our distributor provides amazing reps, and they work closely with Procurement to ensure we’re getting the best possible savings,” Wnek noted.

The Procurement team also helps manage back orders efficiently by notifying Wnek and the appropriate buyer when an item is on back order. Wnek and a Procurement specialist can then review the situation and Wnek can either approve, leaving the item on back order, or identify an appropriate alternative.