Crystal Run Healthcare is one of the fastest growing multi-specialty group practices in the country, with over 400 physicians covering 50 medical specialties in multiple practice locations in the Hudson Valley and lower Catskill region. The organization is committed to quality care, demonstrated by numerous accreditations and certifications recognizing Crystal Run’s practices for adhering to the most rigorous standards for safety and quality.
Over the past decade, Crystal Run experienced rapid growth, and recognized the need to centralize all procurement functions and build great supply chain automation. Following an in-depth review of available systems, the team selected Envi to support the needs of this complex, multi-specialty organization, taking an enterprise-wide approach to item master, purchasing and contract management.
THE CRYSTAL RUN STORY
Creating a Centralized Procurement Process
As the organization rapidly expanded, Kevin Keller, CMRP, Director of Purchasing/Materials Management recognized the escalating need to centralize procurement functions to ensure supply chain could support growth. “With three separate companies and a wide range of patient services being delivered across multiple specialty areas, we saw supply chain in a position to strategically support the organization,” said Keller. “We looked at many systems and selected Envi, and today, all of our facilities are using the same data in the same system. We have a single item master with approximately 8,000 items. We also have approximately 880 vendors and over 300 users.
Leveraging Envi for Ongoing Improvement
With their ongoing utilization of Envi, the team has developed a significant area of excellence in ongoing formulary management. Keller and team continuously evolve the formulary to ensure Crystal Run is finding the best products at the best prices. Using Envi to support this effort, and Keller notes, “Every month we pull a line level purchase history detail from Envi, which is submitted to our GPO, where the detail file is analyzed. Our contract manager reviews all identified opportunities for product conversions, vendor consolidation, product price updating, contract activation and much more.”
Envi Best Practices Drive Results
Their contract manager is one of the keys to success, acting
as the point person for product master list management.
To continuously ensure accuracy, Crystal Run’s supply
chain and AP teams leverage Envi for an automated 3-way
match of purchase order, packing slip and invoice, then
seamlessly interface with their financial system for payment
processing. “We’re working to ensure we’re as automated
as possible, so we’re also doing electronic invoicing
and PO confirmations. Envi gives us an ability ‘to do
more with less.’”
Post Implementation Highlights
Growth has continued at Crystal Run, where they process
approximately 30,000 purchase orders per year with over
100,000 lines of data. With an annual spend of more than
$55M and volumes that are double what they were when
the team implemented Envi, Keller still manages supply
chain with a staff of six buyers, one contract manager (who
also maintains the Envi system), and an assistant supply
chain director. Though volumes have increased significantly,
the staff has only increased by one FTE, demonstrating
the efficiency and automation created by the Crystal Run
Best Practice Highlights
• 3 separate companies, using the same data, same system
• Single item master with approximately 8,000 items, with process for continual updates
• Automated purchasing via single technology platform
• GPO partnership for ongoing contract management, product conversion, vendor consolidation, price file updates, contract activations
• Full integration of systems (Workday, HST, Envi)
• 3-way match (PO, packing slip and invoice) for accurate payments
• Streamlined invoice discrepancy processes
• Hands on management drives continual savings opportunities
The collaborative approach taken by Keller has enabled the entire purchasing department to operate at higher levels of efficiency, and also, brought efficiencies to the Accounts Payable and Receiving departments. “Working together, we’ve not only been able to streamline and automate within our organization, but also externally, so we’re also a better partner to our vendors. In turn, we’ve seen that they’ll work with us to deliver the best pricing and terms,” concluded Keller.