Abbott's Role in Bringing Health Care Providers and Suppliers Together
On September 16th, 2019, the Dow Jones
Sustainability Index (DJSI) named Abbott
the Global Industry Leader in sustainability for the seventh year in a
row.
Their continued success in sustainability comes from their
exemplary innovation and leadership in several areas, such as social,
environmental, and economic performance. However, their progress doesn't come
from individual success alone. Instead, Abbott follows an inclusive mindset
that brings providers and suppliers together under one holistic mission of
helping people live fuller and healthier lives.
Through global expansion, a decentralized supply chain,
and streamlined procurement, Abbott develops a community of health care
partners that elevate each other and lead the way for further sustainability
and growth.
Abbott's Push for Global
Expansion
Currently, Abbott has
expanded their reach into over 160 countries, providing various
technologies and products to a wide customer base.
For over 125 years, Abbott has grown their influence to
reach areas like nutrition, medical devices, diagnostics, and generic
pharmaceuticals. However, legacy strategies have been laid to rest, creating
opportunities to secure growth by manufacturing products in facilities across
the globe. According
to Elizabeth Riordan, the Divisional Vice President of Abbott's Global
Dairy Operations, she shares that the company's push for global expansion has
come from a standpoint of focus and creativity.
"We are
developing a community that is not about centralized command and control but is
elevating technical and procurement skills all over the world with new tools,
consistent processes and a broader expectation of how we want to integrate with
suppliers. This purchasing community spans geographies, organizations and
structures, and we are making it work without centralized command and control.”
Needless to say, their strategy is paying off with stellar
results. Not only does 2109 mark the 15th year in a row that Abbott has been
noticed for its
sustainability practices by the DJSI, but their global impact has also
landed them high rankings on the Dow Jones Sustainability World Index and North
America Index. In a statement from their Cheif Executive Officer, Miles
D. White:
"We recognize
that as a privilege – one that comes with responsibilities. The most important
of these is that we manage the company to ensure that Abbott will be here – for
another 130 years and beyond – continuing to benefit the millions of people
around the world who depend upon us in such meaningful ways."
Creating a
Decentralized Supply Chain and Streamlining Procurement
Abbott has developed a system that optimizes its supply
chain organization into a decentralized approach that prepares its supply base
well before any issues arise.
For instance, they stress that supplier relationships have
to be transparent and that any strategies moving forward must be shared with
them far in advance to ensure that operations are performing at an optimum
pace. This is especially true when branching into new product lines and
expanding into new parts of the world. Sustainability for Abbott means keeping
traditions alive and maintaining a high level of standards, and a major part of
executing that belief relies on preserving the quality, the social and
environmental responsibility, and worldwide compliance among its
suppliers.
So with everyone on the same page in terms of expectations
and company-wide integrity, the procurement process becomes much easier to
carry out. In fact, according to Ric Schneider, Abbott's Cheif Procurement
Officer, the procurement team for Abbott is almost spilt 50-50 between
procurement and technical experts.
"That mix
allows us to take a team approach and to work with suppliers from different
perspectives,” he adds. “It goes beyond just working with their salespeople. We
have been able to tap into a talent with diverse experiences, and that has
provided us with learning opportunities."
Planning for the Future
Overall, Abbott aims to bring health care providers and
suppliers together by following five goals:
1.
Safeguarding Abbott's reputation
2.
Focusing on shared value
3.
Improving financial performance
4.
Optimizing growth and leading innovation
5.
Developing an adaptable supply network
With these benchmarks in place, Riordan goes on to
explain that...
"Shared value means transparent relationships and a shared focus on improving lives. Enhancing margin and elevating financial performance means looking at ways we assess all of the elements that strategic sourcing needs to encompass. Expediting growth means growing relationships with suppliers to find mutual benefits with exciting plans and pipelines. Finally, we want dynamic supply networks that will help us meet consumer needs.”
Creating a decentralized and streamlined supply chain is set to be a hot topic at LogiMed 2019, taking place in March at the Rancho Bernardo Inn, San Diego, CA.
Download the agenda today for more information and insights.