Plexxus Annual Report FY12

2011- 2012 FISCAL YEAR
ANNUAL REPORT
2011 - 2012 FISCAL YEAR
ANNUAL REPORT
Message from the Board Chair – Debbie Fischer
I am very proud that this year was arguably one of the most ambitious and successful
years since the inception of Plexxus in 2006. The most visible achievement this year
was the roll out of a new shared information technology solution (ITS) which will
realize significant efficiencies for all member hospitals. The key component to the
successful implementation of ITS across our member hospitals has been
collaboration. The critical work that was undertaken by the Plexxus member hospitals
to plan, and for many, to complete, this incredibly complex roll out is a testament to
what can be achieved when we galvanize our resources and work together.
This year, we also continued to focus on improving the member experience. We
invested more time in building client relationships and obtained feedback through
numerous tools including our balanced scorecard measurements and customer
surveys which were conducted at all hospitals. We are moving forward to act on the
feedback we have received from our clients in member hospitals. We will continue to
engage members to further enhance our understanding of their needs through data
measurement and robust mechanisms to understand the experience with our service.
I am also particularly proud of our continued success in generating $18.7 million in purchasing savings this year.
As the provincial government moves forward with the Ontario Action Plan for Health Care, financial pressures will
increase on hospitals. The board recognizes the pivotal role Plexxus plays in cost reduction and cost containment
in our health care system, something noted in the recently released Drummond report. In addition to Plexxus
being recognized as a good model for procurement, it reinforced the principle of a shared delivery service.
Another key achievement this year was the work that we undertook related to our business model which involved
careful review and analysis with engagement of leaders from all member hospitals. We have developed a new
business model and the results of this collaborative effort will be further developed in the coming year. I want to
thank Dr. Bob Bell and Rob Devitt of our board who co-chaired this initiative.
This successful year could not have been achieved without outstanding leadership from our member hospitals. I
would like to thank John McKinley (former EVP at Lakeridge Health) and Mark Rochon (former CEO at Toronto
Rehabilitation Institute), who left the Board this year, and to welcome Dr. Tim Rutledge (CEO at North York
General Hospital).
I would also like to thank the Board of Directors, our committee members, and the Plexxus and hospital staff who
work together to support our common objectives for Plexxus.
Debbie Fischer
Chair, Plexxus Board of Directors
Message from the President & CEO – David Yundt
From my perspective FY12 was a very successful year – we realized more value for our
customers and members and delivered on the very aggressive and ambitious goals we
set for ourselves. I want to start by saying thanks :
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to all Plexxus employees for their hard work, positive attitude and dedication
to the ITS project team for their leadership on the implementation and roll-out of
the solution
to the Plexxus operations, IT, finance and human resources teams who worked
closely with the ITS project team on the ITS project
to the hospital ITS project teams who worked closely with Plexxus on the
implementation at their individual hospitals
to our customers for their support and understanding as we worked through (and
continue to work through) the expected bumps during the ITS implementation
to our customers for their patience and support as we continue to work hard on
improving our customer service; and
to participants on the various Strategic Sourcing working groups who play an
important role in our ability to generate purchasing savings across the member
hospitals
The results from all of this hard work paid off :
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We successfully went live with ITS in November 2011 and are well on our way to completing the roll-out
across all hospitals
We exceeded our target for purchase price improvement savings (PPIS) by $1 million, generating $18.7
million in FY12. We will return $9.6 million to our member hospitals this year. Since Plexxus began
operating in 2006 we have generated over $71 million in cumulative PPIS
Our customer service levels have continued to improve in a number of areas. In FY12 we developed a
customer service training program which was attended by 90 employees
We supported all of our member hospitals in complying with the BPS Procurement Directive
We achieved our operating budget targets for the year
I look forward to another challenging and rewarding year in FY13. I believe we are well positioned to build on our
successes to date, and there will be even greater opportunities for us to add value to our members and
customers as we leverage the power of ITS and continually strive for operational excellence.
David Yundt
President & CEO, Plexxus
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2011 - 2012 FISCAL YEAR
ANNUAL REPORT
About Plexxus
Created by its member hospitals in 2006, Plexxus is a not-for-profit shared services organization with expertise in
supply chain management, information technology and business transformation. Working collaboratively with our
stakeholders, we deliver cost efficient services through scalable systems and processes.
Plexxus member hospitals include: Holland Bloorview Kids Rehabilitation Hospital, Lakeridge Health, Mount Sinai
Hospital, North York General Hospital, Rouge Valley Health System, St. Joseph’s Health Centre, The
Scarborough Hospital, Sunnybrook Health Sciences Centre, Toronto East General Hospital, University Health
Network and Women’s College Hospital.
Vision, Mission, Values
As an outcome of our Board strategy session in 2011, Plexxus undertook a Brand Marketing and Communication
project in FY12. With the support of a consultant that specializes in business to business and corporate brand
marketing, we conducted discussions and interviews with our customers, suppliers and employees to obtain
feedback and input from our key stakeholders.
This research yielded some key findings: acknowledgement that Plexxus is important for cost efficiency and that
our member hospitals have a vested interest in our success; recognition that while there has been improvement,
we need to be outcome focused and there is opportunity for us to continue to improve our service delivery; and
we need to clearly communicate at all levels of the hospital.
As a result of the findings we have revised our Vision, Mission and Values to better reflect what Plexxus does and
what we are committed to deliver. Plexxus is continuing to evolve as an organization and we are striving to better
meet our customers’ needs today and into the future.
Our revised tag line also describes this well : Delivering value through working together.
We are pleased to share with you our new Vision, Mission, and Values.
VISION
Plexxus is a leading shared services organization delivering value to the health care system.
MISSION
Plexxus relentlessly pursues opportunities to provide reliable services to our customers that
improve quality and result in operational efficiencies and savings.
VALUES
Collaborative, Accountable, Professional, Responsive
Behind the Scenes
Pain Pump Replacement at University
Health Network
Releasing Time to Care at St Joseph’s
Health Centre
Sourcing, procuring and maintaining a reliable supply
chain are a few of Plexxus’ areas of expertise. We also
step in to assist our customers when the unexpected
happens and possible threats to maintaining quality
care occur. In late November 2011 one such incident
occurred at the University Health Network (UHN).
In FY12 one project we were proud to be part of was the
Releasing Time to Care (RTC) initiative undertaken at
St. Joseph’s Health Centre (SJHC).
High volume IV pumps are crucial in assisting seriously
ill patients manage their condition. An unforeseen
natural disaster compromised the manufacturing plant
of the company that supplies UHN with these critical
devices and a worldwide shortage of the device was
looming. With no alternative supplier readily available,
Plexxus stepped up to work with UHN to ensure patient
care would not be interrupted.
Three major departments within Plexxus : Clinical
Resources, Sourcing and Contracts Management, and
Logistics , worked with the various UHN clinical
representatives to assess their needs and come up with
an action plan. Clinical Resources and Logistics
stepped in to take an accurate snapshot of current
inventory levels, understand rates of usage and secure
any existing supplies to stabilize the system as a new
product could be secured. Sourcing and Contracts
Management was on the ground understanding UHN
clinician’s specific needs for their patients and was able
to go market, find the right product and negotiate the
appropriate contracts while at the same time
safeguarding UHN from undue financial exposure
making it a cost effective process.
From the time the natural disaster threatened the supply
chain to a new company’s high volume IV pumps
arriving in UHN clinical areas took just under 3 months.
During this time, sound supply management ensured
current product levels were maintained and that patients
had access to the same high quality medical care.
Plexxus works closely with all its members to be there
when the unexpected happens thus making sure the
front line medical professionals have the equipment
they need to treat their patients.
RTC is a staff driven program to identify and implement
improvement ideas to be able to provide safe, effective
patient care. The program takes a patient-centered
approach to improving the quality of care by helping to
free up caregivers' time for more direct patient care.
Although RTC was originally designed around nursing
processes, all unit staff were involved in the initiative at
SJHC. Plexxus Logistics joined with other partner
services such as facilities, dietary, pharmacy and many
others to play an important role in implementing this
initiative.
Plexxus role in this program included :
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Meeting with the project manager, nurse
managers and their clinical personal
Reviewing usage of products and revising par
levels for the supply carts
Working in cooperation with the nursing staff
Recommending the type of carts and
customizing carts by working with the external
vendor
Building supply carts from scratch to reflect the
new model of color coded bins and grouping of
supplies. This was done to have easier access
to supplies
RTC ultimately improves the overall quality of care for
patients and improves work life for staff and the Plexxus
team is proud to have contributed to this great success.
Did You Know...
In FY12 Plexxus
 Shipped 1.2 million lines and $85 million
from its central Distribution Centre
 Received and delivered over 500,000 line
items of products in our hospitals
 Maintained over 1,700 supply carts across
our hospitals
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2011 - 2012 FISCAL YEAR
ANNUAL REPORT
Fiscal 2012 Highlights
Integrated Technology Solution (ITS)
FY12 Strategic Sourcing Initiatives
In FY12 Plexxus and its 11 member hospitals
achieved a first in Canadian healthcare – the
implementation of a common and shared Integrated
Technology Solution (ITS). The solution enables the
implementation of standard business processes and
leading practices that will result in increased
efficiency and lower costs.
Strategic Sourcing Initiatives (SSI) combine the spend
of multiple hospitals to reduce the overall cost of
products and services. A structured and defined
process, with strong communications and clear
responsibilities, provides the basis for open and
transparent decision making. To be successful, SSI
decisions require cooperation and commitment by
clinical and business representatives from our member
hospitals and Plexxus. The process must also comply
with both the hospitals’ procurement policies and the
BPS Procurement Directive.
ITS was, in reality, a major business transformation
project that spanned several years and has resulted
in the development of a common, integrated and
scalable technology platform, that will be shared by
the hospitals.
The scope of the system includes back office
functions such as Supply Chain (Sourcing and
Contract Management, Purchasing including
e-Requisitioning, Logistics), Finance (General
Accounting, Accounts Payable, Capital Projects and
Asset Accounting, Funds and Grants Management),
Master Data Management (Item and Vendor master
files) and Reporting.
University Health Network and Plexxus went live on
ITS on November 28, 2011. As of June 4, 2012,
Rouge Valley Health System, Mt. Sinai Hospital,
Toronto East General Hospital, Women’s College
Hospital and Sunnybrook Health Sciences Centre
have also gone live on the system. The remaining
hospitals will implement the solution in phases
carrying into October 2012.
As with any major project of this size and scope,
there have been challenges along the way with
many important lessons learned such as having a
strong governance model in place, the importance of
good data, and thorough change management
processes.
The implementation of ITS signals a major shift in
how hospitals manage and leverage their back office
systems, and is an example of the leadership and
collaboration that Plexxus member hospitals have
shown.
A list of all SSIs that were completed in FY12 include :
 Endoscopy Supplies
 Orthopaedic Hips & Knees Implants
 Gloves - Surgical and Examination
 Base Urology
 Ostomy
 Advanced Wound & Skin Care
 Respiratory Therapy
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Needles, Syringes, I.V. Catheters, and
Accessories
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Blood Collection Products
 Stents
Did You Know...
In FY12 Plexxus
 Tracked savings on 250,000 SKU’s and 1,100
contracts in its PPIS database
 The size and scope Plexxus’ ITS project is a
first in Canadian healthcare
 Plexxus provided customer service training to 90
employees in customer facing roles across the
organization
Fiscal 2012 Highlights
Distribution Centre — Health & Safety Program
Plexxus is very proud of the high levels of order
accuracy and order fill rate delivered from our
Distribution Centre. We are equally proud that this
service is carried out with an unwavering commitment to
safety.
system for health and safety. Annual refresher training
on the safety standards is required for all employees.
Joint Health and Safety Committee meetings and
workplace safety inspections take place monthly.
In FY12 the number of WSIB lost time days was ZERO!
Our 10 Safety Standards form the framework of a robust
health and safety program. These standards ensure
that we comply with occupational health and safety
legislation and maintain the internal responsibility
Congratulations to our management team and
employees at the DC for such a sterling safety record.
Governance & Leadership
Board of Directors
Senior Management Team
Debbie Fischer (Chair)
Mount Sinai Hospital
David E. Yundt
President and CEO
Dr. Robert Bell (Vice Chair)
University Health Network
Catherine Booth
Chief Information Officer
Paul Bertin (Treasurer)
No Limit Technologies
Mary Byczok
VP, Human Resources
Janet Dalicandro
Enrichment Enterprises Inc.
Rob Devitt
Toronto East General Hospital
Marilyn Emery
Women's College Hospital
Don Cummer
Account Executive
Stephen D’Arcy
Chief Financial Officer
Andrea Englert-Rygus
VP, Operations
Colin Holland
CRH & Associates
Dale McGregor
St. Joseph's Health Centre
Dr. Barry McLellan
Sunnybrook Health Sciences Center
Dr. Tim Rutledge
North York General Hospital
Georgina Steinsky-Schwartz
(Past Chair) Independent
David Yundt (Secretary, ex-officio)
President and CEO, Plexxus
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Comments or feedback on this publication can be sent to:
Amanda Connolly, Communications Coordinator
[email protected]
416-673-5640