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Mohawk Case

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18 views2 pages

Mohawk Case

Uploaded by

jaidesai1000p
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Mohawk Case Study

The case study focuses on Mohawk Medbuy Corporation (MMC), a Canadian not-for-profit,
shared services organization (SSO) that provides Supply Chain Management (SCM) services to
hospitals and healthcare facilities. MMC helps reduce costs for hospitals by leveraging
economies of scale, negotiating lower prices for medical and surgical supplies, pharmaceuticals,
and equipment through bulk purchasing.

In 2023, MMC merged with Plexxus, another Toronto-based SSO, further enhancing its reach
and efficiency. Both organizations use SAP, a sophisticated enterprise system that centralizes
data, streamlines procurement, and ensures smooth supply chain operations. Hospitals benefit
from just-in-time (JIT) inventory, where supplies are ordered and delivered only when needed,
minimizing storage and costs.

The SCM system integrates with hospitals’ inventory systems to ensure timely replenishment,
boasting a 99.7% fill rate for products. This ensures critical supplies are always available while
substitutes are offered for unavailable items. By managing purchasing, warehousing, and
delivery, MMC enables hospitals to focus on patient care, all while reducing overall healthcare
costs.
Mohawk Case Study

Here are some possible areas the questions could focus on, along with some ideas on how to
answer:

1. How does Mohawk Medbuy's Supply Chain Management (SCM) system help reduce
healthcare costs?
- Key points to include:
- Economies of scale: MMC negotiates lower prices by buying in bulk for multiple hospitals,
achieving savings of up to 25%.
- Just-in-time inventory (JIT): Hospitals do not need to store large amounts of inventory,
reducing storage costs and freeing up funds.
- Efficient delivery and warehousing: By centralizing the delivery process and using systems
like SAP for Warehouse Management, MMC ensures that hospitals receive their supplies on
time, minimizing waste and transportation costs.
- Reduced administrative costs: MMC manages the procurement process for all hospitals,
reducing the need for individual hospitals to invest in their own purchasing, warehousing, and
accounts payable systems.

2. What are the benefits of using an enterprise system like SAP in managing the healthcare
supply chain?
- Key points to include:
- Centralized data management: SAP centralizes data such as suppliers, contracts, and
pricing, ensuring accuracy and reducing duplicative effort across hospitals.
- Streamlined processes: The system automates the ordering process, allowing hospitals to
scan their current inventory and automatically reorder based on real-time needs.
- Integration: For hospitals using the same SCM system as Mohawk Medbuy, integration is
seamless, reducing complexity and enhancing communication between hospitals and the SSO.
- Fill rate efficiency: With a 99.7% fill rate, SAP ensures that nearly all products ordered are
delivered, which increases reliability and reduces delays.

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