JHAH (Johns Hopkins Aramco Healthcare), a joint venture between Johns Hopkins and Aramco Healthcare, is a prominent healthcare provider in the Kingdom of Saudi Arabia, serving 350,000 Aramco employees and their dependents. JHAH recognised that needed to optimise its Procurement and Supply Chain Management (SCM) functions to align with industry best practices and support its ambitious business transformation. Dr Michael Walsh, JHAH’s CEO who commissioned the project, appointed JMCL, a seasoned management consultancy specialising in ‘Enlightened Procurement,’ with experience in the sector and the Region..
JMCL embarked on a comprehensive engagement, spending considerable time on-site in KSA, analysing and reviewing the current Procurement and Supply-Side functions within JHAH (“As Is”). Then determining recommendations and plans to align these functions with best practices, ensuring that they would support JHAH’s transformed business model up to the year 2032. Dr Walsh’s over-arching criteria was that all recommendations be pithy and feasible to implement.
Current State Analysis: JMCL conducted a detailed review of JHAH’s existing Procurement and SCM functions against its own Excellency Framework. This involved evaluating internal processes & systems, people & structure, strategy & policies, and performance metrics, of JHAH and its suppliers.
Future-State Vision: Collaborating with JHAH’s management, JMCL determined, how Procurement, Warehousing and Supply-Chain functions should evolve to support a transformed business model. This included considerations to ensure JHAH becomes highly profitable, competitive, and successful in generating additional, external revenue streams up to 2032.
Stakeholder Engagement: JMCL presented its findings and recommendations to C-Suite members, senior end-users, and key department heads, gauging reactions and refining recommendations based on constructive criticism and feedback. This iterative process ensured acceptance and alignment with JHAH’s culture.
Pragmatic Approach: JMCL adopted a pragmatic approach, considering the unique cultural, regulatory, and operational constraints within which JHAH operates.
JMCL provided ten pithy, actionable recommendation for Procurement and SCM functions to enable and support the transformed JHAH business.
An implementation programme to bring recommendations into being.
JHAH are successfully progressing with this implementation reporting directly to Dr. Walsh who continues to consult with JMCL on progress.
JMCL provided on-site, bespoke training to improve one of the specific recommendations (Quality & Quality Assurance.)
JMCL also provided a Thought Leadership Report on the future state of the Procurement and Supply Side landscape with relevance to JHAH
The collaboration between JHAH and JMCL resulted in a range of benefits:
Operational Assessment: JHAH gained insights into how its Procurement and Supply-Side functions operated compared to best practices, allowing for targeted improvements.
Implementation Plan: JMCL delivered a detailed implementation plan to enable JHAH to align with best practices and JMCL’s Excellence Framework
Cost Reduction: JHAH has instigated a consolidated cost reduction programme including enhanced purchasing power.
Audit Compliance: The assessment addressed non-conformities identified in audits, providing a roadmap for resolution.
Future Vision: JMCL established a vision for the future of SCM, aligning with JHAH’s transformation goals up to 2030 and beyond.
Risk Mitigation: Recommendations to improve the inherent risks within JHAH’s Procurement, Warehousing, Logistics & Supply Chain.
Enhanced Governance: An overview of governance improvements to implement to strengthen control and oversight.
Resilience Building: Strategies to enhance resilience in the face of pandemics or economic shocks.
Cultural Improvement: Significantly enhanced culture of cost control, accountability, and innovation in supplier management.
Technology Adoption: Increased use of technology has contributed to overall simplifying and improving procurement processes.
JMCL’s Enlightened Procurement service has positioned JHAH for success in its business transformation. By addressing current challenges and aligning Procurement and SCM with best practices, JHAH is well-equipped to navigate future complexities, deliver high-quality healthcare services to its stakeholders and generate additional revenue. JMCL’s pragmatic approach and commitment to implementation ensure sustained success for JHAH in the evolving healthcare landscape.
Dr Walsh commented:
“Based on the insight, recommendations, vision and planning which JMCL provided we are rapidly improving our Procurement, Warehousing & Logistics functions and transforming our business for the future. We are incredibly grateful for JMCL’s work and the ongoing support they provide.”
By addressing current challenges and aligning Procurement and SCM with best practices, JHAH is well-equipped to navigate future complexities, deliver high-quality healthcare services to its stakeholders and generate additional revenue.
