Materials management information systems: What's important?
•The Winner
•Tied for Second
•Tied for Third
•Slightly Less Important
•Last but not least
Earlier this year, Health Services Corp. of America (HSCA) asked the question, "Is your materials management information system (MMIS) pulling its own weight?" Internet users responded by completing an online MMIS survey. We asked respondents to rank the importance of 9 MMIS characteristics: vendor reputation, package capabilities, system design, system capacity, electronic data interchange (EDI) capability, reporting, technical support, expandability, and integration. For roughly two weeks, users ranked characteristics from 1 to 5, with 1 being least important and 5 being most important. Some 35 people responded.
As expected, all nine MMIS characteristics proved to be very important to our readers.
Although the race was tight, the survey revealed some prioritization of MMIS characteristics.
Expandability: The basic system can expand to match your facility's plans for growth, offering flexible system designs. MMIS purchases shouldn't be an "all or nothing" endeavor. As your purchasing patterns and demands on the system change, options should exist for expansion of the existing MMIS. Changing to a new system costs time and money, so upgrades are often preferable to complete system replacement.
Tied for second (score=4.5625)
System capacity: System capacity matches the needs and plans for growth of your organization without restrictive limits to the number of line items, manufacturers, and distributors maintained over time. Ask if the software and vendor support function can handle your volume. It's important to discover any limits to the number of line items, manufacturers, and distributors maintainable within the MMIS.
EDI capability: The MMIS supports critical electronic commerce functions including the following:
810 – Invoice
832 – Price/sales catalog
840 – Request for quotation
845 – Price authorization acknowledgement/status
850 – Purchase order
855 – Purchase order acknowledgement
856 – Ship notice/manifest
Significant impetus to participate in electronic commerce currently exists in healthcare, including purchasing. EDI reduces overhead and total cost of operations, so an MMIS package without integrated EDI capability is lacking cost-saving tools for the future.
Integration: When installed, the MMIS integrates well with existing hardware and software. For example, the MMIS integrates information into accounts payable and general ledger portions of existing financial software. Integration of information can reduce operational redundancy and minimize data entry time. One strength of superior MMIS packages is the ability to operate smoothly within existing networks. Also consider automated entry of incoming data.
System design: The software applications are designed for materials management, not simply adapted to accept materials management functions. The system supports multiple stock locations with multiple units of measure. Superior MMIS products are designed for materials management functions. As integrated delivery networks (IDNs) grow and operations become centralized, MMIS packages must support multiple facilities and tiered pricing.
Reporting: The system can create ad hoc reports that are user friendly, offering reporting tools that materials managers can use without assistance from the information systems department. Custom reporting functions convert purchasing data into information that managers can use. Consider the amount of training necessary to allow internal staff to generate useful reports for analysis and error detection. Reports that are difficult to generate are often not used, reducing access to timely information.
Slightly less important (score=4.375)
Vendor reputation: The vendor has a history of successful installations, financial stability, and a good reputation in the industry. Consider the history and reputation of the MMIS vendor. Fads often fail, while experience and market testing succeed. Explore the financial history and stability of the vendor. Current system users are an excellent resource for discovering the strengths and weaknesses of a proposed MMIS package.
Package capabilities: The MMIS software supports innovations like bar coding, point of sale, universal product number (UPN), and national drug codes (NDCs). Several cost- and labor-reducing initiatives are afoot for healthcare. MMIS software should be flexible enough to incorporate current and near-future coding formats. Be certain that all components of the MMIS are free of date-related coding errors and obtain written Year 2000 readiness disclosure from vendors, manufacturers, and support companies.
Last but not least (score=4.3125)
Technical support: The MMIS vendor offers technical assistance, support documentation, and a 24-hour helpdesk to reduce downtime and improve operational efficiency. The importance of support is relative. If problems exist, technical support would likely top the list of critical MMIS characteristics. Having 24-hour help may not be necessary if facilities operate only during regular business hours. One respondent commented, "[We] need technical support only during hours of operation. My MM department isn't open from 11:30 pm until 7:00 am so I wouldn't need the additional technical support." Still, vendors should offer ongoing support to help minimize downtime.
Rob Percival is communications manager at Health Services Corporation of America.
Reprinted from www.hsca.com, by permission of Health Services Corp. of America (HSCA), Cape Girardeau, MO. HSCA provides purchasing agreements, consulting, and information services for client hospitals, health systems, and other healthcare facilities.