Methodology

SCMetrix™ research methodology draws from industry expertise as well as extensive academic research on supply chain performance measurement. The development of this benchmarking tool occurred in four phases over the period of two years.

Phase I - Foundation Knowledge

Through independent initiatives, AHRMM and ASU developed critical foundation knowledge for launching the development of SCMetrix™. AHRMM and HFMA established a critically important industry standard supply expense definition. Concurrently, ASU's Health Sector Supply Chain Consortium funded the research project "Supply Chain Metrics and Benchmarking:Establishing the Foundation for Knowledge Sharing and Performance Improvement across the Health Sector Industry."

Phase II - High Impact Performance Drivers and Associated Measurement Levels

Using the performance outcomes and process models developed in Phase I by ASU, a modified Delphi method was used to identify targeted areas for benchmarking and performance improvement analysis. Working through a multi-stage process, expert panel members discussed and reported their importance rankings on the following questions:

1. Which of the following performance outcomes do you believe are most important in driving substantial supply chain performance improvement in provider organizations over the next three to five years?
2. Which of the following processes do you believe are most important in driving substantial supply chain performance improvement in provider organizations over the next three to five years?
3. Which of the following practices do you believe are most important in driving substantial supply chain performance improvement in provider organizations over the next three to five years?
4. Which of the following measurement levels do you believe are most important in developing consistent, reliable, actionable, and credible performance indicators?
5. Which of the following adjustments to performance indicators do you believe are most important in developing consistent, reliable, actionable, and credible performance indicators?

Phase III - Metrics Identification, Evaluation, and Selection

Using the outputs of Phases I and II, a focus group of industry experts provided quantitative and qualitative feedback on the use of different financial and operational metrics. The focus group evaluated existing as well as proposed financial and operational metrics. In addition, the ASU Research Team performed a comparative analysis of benchmarking tools and performance improvement approaches outside the health care industry. The focus group also provided input on the targeted practices and capabilities and the potential impact of the benchmarking methodology on improving supply chain performance across a range of hospitals.

Phase IV - Validation of Structure, Practice and Capability Measures

At the core of SCMetrix™ unique benchmarking framework are supply chain structure, practice and capability measures. These measures were adapted from the academic literature and validated through the use of advanced research methods. It is the goal of SCMetrix™ to provide robust psychometric implementation and effectiveness measures to the health care supply chain industry.