Perfect Order Dashboard: Overview

Objective

  • Introduce an organizational theme for metrics

  • Create a framework for metrics across products

  • Support flexible benchmark comparisons alongside explicit grading

  • Direct focus to areas needing attention

Perfect Order Definition

A purchase order processed electronically (from order to payment) without human intervention, which is delivered to the correct location, on time, undamaged, at the correct price, with the desired quantity, on the first attempt - Strategic Marketplace Initiative.

The GHX definition of the Perfect Order dashboard is going to mature over time. There will be opportunities to grow the KPI metrics with additional data points such as payment terms and contract price exceptions. Today the data represented in the Perfect Order Rate includes only the GHX Exchange data, but in the future, we hope to extend this further to incorporate your entire hospital spend via a Purchase Order and/or Invoice History file

How is Perfect Order Rate calculated?

The Perfect Order Rate (POR) is the way to measure your organization’s performance in respect to supply chain automation and efficiencies across the GHX Exchange. The POR is the metric that shows the percent of PO lines sent across the GHX Exchange that are touchless and completely automated from purchase through payment.

The definition of “perfect” means that the PO line fulfilled the criteria listed below. The line must satisfy ALL the requirements below:

  • PO Line has a corresponding POA Line

  • PO Line without Item Number Exception

  • PO Line without Unit of Measure Exception

  • PO Line without Unit Price Exception

  • PO Line filled on first response

  • PO Line without a Rejection Exception

  • PO Line without a Quantity Exception

What other KPIs does the Perfect Order Dashboard capture?

The Perfect Order Dashboard displays additional KPIs that do not drive or impact the Perfect Order Rate:

  • PO Line without a Backorder Exception

  • PO Line has a corresponding Shipment Notification (ASN) Line

  • PO Line where the Shipment Notification (ASN) line is accurate

  • PO Line has a corresponding Invoice Line

  • PO Line has a 3-way match (POA, ASN, INV)

What is the industry standard for measuring a “perfect order”?

Working in conjunction with SMI (https://smi.memberclicks.net/), GHX organized around five key categories by which we are measuring supply chain performance. The graphic and definitions below breakdown the categories, and the KPIs (key performance indicators), that roll into each area.

Category #1 Purchase

  • Percent of PO Lines with POA Lines

  • Percent of PO Lines with Item Number Exception

  • Percent of PO Lines with Unit of Measure Exception

Category #2 Price

  • Percent of PO Lines with Unit Price Exception

Category #3 Fill

  • Percent of PO Lines filled on first response

  • Percent of PO Lines with a Backorder Exception

  • Percent of PO Lines with a Rejection Exception

Category #4 Receive

  • Percent of PO Lines with ASN Lines

  • Percent of PO Lines where the ASN is inaccurate

  • Percent of PO Lines with Quantity Exception

Category #5 Pay

  • Percent of PO Lines with Invoice Lines

  • Percent of PO Lines that had a 3-way match (POA, ASN, INV)

Other Terms and Concepts

  • PO – Purchase Order

  • POA – Purchase Order Acknowledgment

  • ASN – Advance Ship Notice

  • INV – Invoice

  • Benchmark – The industry average aggregated from the GHX provider community

  • Grades – provides a high-level view of the Health of the metric

You can limit Benchmark to similar hospital systems by using the PO Volume, Bed Count, Country and Region toggle buttons:

  • PO Volume toggle – compares your organization to hospitals with comparable spend.

    • Groups: (annual spend)

      • 1 – 1,000,000

      • 1,000,001 – 5,000,000

      • 5,000,001 – 15,000,000

      • 15,000,001 – 30,000,000

      • 30,000,001 – 75,000,000

      • 75,000,000

  • Bed Count toggle – compares your organization to like-sized hospital systems.

    • Groups: (bed count)

      • 1 – 50

      • 51 - 100

      • 101 – 250

      • 251 – 500

      • 501 – 1,000

      • 1,000

  • Country toggle – compares your organization to hospital systems within the same country.

    • Groups: (country)

      • Global

      • National (United States/Canada)

  • Region toggle – compares your organization to hospital systems within the same region.

    • Groups: (region)

      • Capital

      • Pacific

      • Upper Midwest

      • Southeast

      • Mountain

      • Lower Midwest

      • Northeast

      • Southwest