Logistics/Operations

RON DENTON & ASSOCIATES, LLC

SUPPLY CHAIN PERFORMANCE IMPROVEMENT, INVENTORY/SPACE OPTIMIZATION, AND INTERIM MANAGEMENT SOLUTIONS

High Level Services Overview

2021

www.rdahealthcare.net

Ron Denton & Associates, LLC |© 2021 Confidential & Proprietary 1 1 RDA Introduction RDA’s mission is to advance Supply Chain to reduce costs and increase operational efficiencies for healthcare organizations nationwide. RDA Overview Client Benefits ü Established 2014 ü Reduce Expenses ü Experienced Supply Chain Resources ü Optimize Supply Chain (20+yrs minimum each) ü Maximize Space ü Academic, IDN, and Community Experience ü Reduce Inventory and Holding Costs ü Unbiased, Collaborative Approach ü Standardize & Streamline Operations ü Comprehensive Supply Chain Services (including labor) ü Over 700 Clients Served RDA’sü goalIncrease is to Clinical advance Satisfaction the practice of Supply ü Majority Woman-Owned Business Chainü toTraining reduce& costsProcesses and forincrease Sustainable operational Results efficiencies for health systems nationwide.

Efficiency Quality Satisfaction Costs

RDA leadership is made up supply chain leaders with more than 20+ years end-to-end supply chain experience.

RDA RDA RDA SERVICES RESULTS TEAM PERFORMANCE IMPROVEMENT $700M+ We roll up our sleeves to get the job done! Acute and non-acute supply chain diagnostics, documented Over 700+ clients served strategy development, value analysis, strategic savings sourcing, contract negotiation, process and Unbiased, nationwide firm storage re-design, optimization, RIE facilitation, 400+ interim and implementation services support clients in positions filled 150+ total years of supply chain completing high priority projects Reduced annual expenses experience INVENTORY & SPACE OPTIMIZATION by 20% - 40% Comprehensive healthcare and industry Technology and services to optimize space Right size inventory supply chain expertise and assets, improve operational workflow improve availability up to Academic, Community, efficiencies, and increase product availability 99% to clinicians via demand planning Acute and Non-Acute experience INTERIM MANAGEMENT Commitment to objective and Provide experienced supply chain confidential feedback professionals to lead, train and enhance organizational Delivery of services on time, performance on an interim basis on target, and on budget

Ron DentonRon Denton & Associates, & Associates, LLC LLC | |©818.324.5208 2020 Confidential | www.rdahealthcare.net & Proprietary | © 2021 Confidential & Proprietary 4 RDA’s Supply Chain Focus RDA provides an end-to-end supply chain focus for healthcare providers (acute and non-acute), distributors, manufacturers, and suppliers.

Supply Chain Strategy Contracting/ Operations/ Value Analysis/Sourcing Inventory Procurement/AP Transportation/ Logistics • Structure • Process/Training/ SOPs • Process/Training/ SOPs • LUM Implementation • Process/Training/ SOPs • Contract Gap Analysis • Inventory/ Space • Optimize Pallet • Purchased Services • Contract Review Optimization (Demand Architecture • Pharma • Contract Negotiation Logic™) • Process/Training/SOPs • IT • Contract Mgmt • Physical Inventory • Workflow Optimization • Contract Optimization • POU System • Storeroom/Warehouse Evaluation/ Design Optimization • Network Design

Data Management

• Vendor Master Mgmt • Item Master Mgmt • ERP/MMIS • Optimization & Demand Planning

Contracting Logistics Pharmacy • Supply Chain Assessment & Diagnostic Department Multi- • Best Practice Training Department Focus: Specialty • Rapid Improvement Event Facilitation Nursing/ Depts Facilities Services: Clinical • Facility Integration for Acute & Non-Acute (e.g. OR)

Ron Denton & Associates, LLC |© 2021 Confidential & Proprietary 5 RDA’s Service Lines RDA provides a total supply chain focus for healthcare providers (acute and non-acute), suppliers and manufacturers across three service lines.

Performance Inventory & Space Interim Improvement Optimization Leadership

• Supply Chain Diagnostics, Design, • Proprietary cloud-based Demand • Experienced Interim Leaders to fill Standardization, Implementation, Logic™ solution for sustainable rolls until long term resources are on- & Training inventory and space optimization boarded for the following roles: (Supplier Selection through Patient Delivery) (Supply Storage Areas) • Vice President, Supply Chain • Value Analysis Enhancement • Supply Storage Redesign (e.g. • Director, Supply Chain/Materials Storeroom, Warehouse, OR, PAR Locations) • Contract Negotiation & • Supply Chain Manager • Workflow Assessment & Optimization (Supplies – PPI & • Contracts Manager Alignment for Supply Chain Functions Commodity, & Purchased Services – GPO, • Value Analysis Manager Distribution, EVS, Food, Pharma, etc.) across all departments • Logistics Optimization • Provide RDA’s Supply Chain Best (Warehousing, Receiving, Distribution, & Practice Guidelines (35+) Replenishment, Storeroom, or Central • Mentor/train current and/or new Supply, LUM Review and Prep, Optimize supply chain resources Pallet Architecture b/t DC and Customers) • Process Optimization (Clinical and Non-Clinical Departments), including Rapid Improvement Event Facilitation

RDA has developed best practice guidelines for key healthcare supply chain functions. Lean Methodology with Change Management

Ron Denton & Associates, LLC |© 2021 Confidential & Proprietary 6 Performance Improvement Example Results Northwest (Two Hospital System) Northwest (Two Hospital System) Increased Supply Chain Operations Integrated Non-Acute Supply Chain Efficiencies On-boarded newly acquired clinics with multiple supply locations and surgical services At a large Academic Medical Center, RDA’s • Set up primary distributor on-site team analyzed and implemented • Identified product needs and utilization improvements in the existing LUM • Designed and implemented PAR carts replenishment operations process flows. • Tested supply chain processes to ensure readiness • Reduced walk ups by 60% • Decreased inventory by 50% via Kanban • Implemented a Stock-Out Program, reducing daily stock-outs by 40% • Implemented a Pallet Architecture Southeast (Five Hospital System) Program for LUM, reducing labor by Example Improved Warehouse 10 man hours/day Operations Efficiencies Successes Assessed, documented and implemented improvements in a health system’s consolidated warehouse operation. • Developed productivity measurements Southwest (Eight Hospital System) (receiving, put away, pick/pack, and Enhanced Strategic Sourcing & Value Analysis delivery) Developed a master list of GPO contracts (in conjunction • Optimized daily distribution schedules with GPO) and an on-going contract compliance process for the health • Implemented UOM improvements to system utilizing its MMIS for GPO and local contracts. reconcile inventory variances • Achieved $12.9M savings in 12 months • Trained staff to improve productivity • Decreased rental equipment costs by $100K • Developed process to reduce the number of off-contract purchases by 14%

RDA can help in any area or aspect of the supply chain across all departments of a health system with remote or on-site resources as needed. • Supplemental Resources to support existing operations or COVID-19 specific needs v Interim Supply Chain Resources (Leadership, Management or Hourly) v Contracting/Sourcing/Value Analysis/Procurement • Research potential suppliers/distributors/products/equipment (clinical & non-clinical) • Contract review/negotiations (supplies, services, including revenue cycle) • Developing volume aggregation strategies (system, state, or regional level) v Inventory Management • Inventory Management Control Processes • Selling excess supplies and/or purchasing supplies at discounted rates (via RDA Strategic Alliance) • Developing and implementing Consignment strategies • Provision for storage of pandemic and contingency supplies v Logistics/Operations • Special projects support (aka temporary hospital supply chain set-up) • Streamline/Optimize supply chain processes (order through distribution) • Design and implement a plan for dedicated storage • Writing/modifying emergency, disaster plans, or COVID-19 supply chain policies (primary & alternative staff)

• Technology/Tool for Demand Planning (inventory, space, workflow) v Current needs v Future needs (elective surgery spike + COVID-19 resurgence)

Ron Denton & Associates, LLC |© 2021 Confidential & Proprietary 8 RDA’s Demand Planning Solution: Demand Logic™ Demand Logic™ is RDA’s proprietary, WHY cloud based application that automates the manual Quantitative Benefits method of optimizing inventory, space, and labor. • Reduce annual expenses by 20%-40% • Dollars per line • Clinical and Non-Clinical Labor • Right size inventory – SKU WHAT HOW specific, clinical focus • Reduce call downs/walk-ups • Compliments MMIS, • Supply Data: by 75%-100% • Return on investment within ordering platform, EMR, • Facility/Location List 12 months or WMS • Supply Utilization Data • Predictive Analytics • Supply Dimensions • Lean Process Re- • Storage Dimensions Qualitative Benefits engineering • Workflow/Schedule • Prepare for LUM • Training for SCM staff to • Transmit Data via cloud • Optimize inventory and Manage • Assess, Test, Implement, workflow • Maximize space (2D visualization) Sustain • Improve quality and patient satisfaction

Ron Denton & Associates, LLC |© 2021 Confidential & Proprietary 9 Demand Logic™ Example Results Background • Academic Medical Center • 82 PAR Locations • 700 Nurse Servers • 40 FTEs Operational Improvements • Implemented Inventory Order/ Replenish Standard Work • Optimized Inventory/PAR Levels • Optimized Warehouse Inventory

Opportunity Description Estimated Annual POU Opportunity Annual Savings Achieved

Product Availability 18% - 43% improvement at POU Clinical time savings $450,000 - $600,000 Stock-out Reduction 30,000+ lines 53% - 86% Materials labor savings $668,000 - $1,050,000 Replenishment Line Reduction 5,000+ lines 15% - 54%

Timing & Demand Capture 14%* 14%* Inventory reduction 3% - 25% * Clinical utilization timing & demand capture analysis is based on data provided by hospitals using Point of Use technology.

WHAT HOW

• Provide experienced (20+yr) • Understand Job Description • Vacant Supply Chain Vice leader or Need Presidents, Directors, or • Assess operations for • Identify Candidate with Manager levels improvement opportunities matching skillset from RDA’s • Need Experienced • Manage day-to-day Supply Qualified SCM Resource Resources, Fast Chain functions Pool • Leader New to Healthcare • Continue or initiate key Industry strategic initiatives • Conduct Supply Chain We needed a Value Analysis Director and RDA provided a highly qualified resource training sessions (vendor who had Value Analysis experience and great relationship skills. We needed selection, including value “ someone who knew what they were doing as we needed savings fast. She led our analysis, through supply Value Analysis teams to save millions over a 12 month time period.” billing) – Scott Watkins, Vice President, Supply Chain • Mentor or coach new supply chain staff on supply chain RDA provided immediately credibility at an important juncture in our relationship best practices and supply with GBMC. I was impressed with RDA’s ability to quickly fill our need for this chain operations “ interim support, and I know that the member was pleased with RDA’s services. I would definitely use RDA’s services again in this interim management space.” - Tim Berkey, Vice President, Engagement and Delivery

• Independent & Unbiased • Process & Optimization Focus Company • Practioner Methodology • Client Needs are our Priority, Resulting in Repeat Business

• Supply Chain Experience (20+ years) • Collaborative and Hands-on Approach Team • Single Project Focus • Results Driven

• 35 Best Practice Supply Chain Guidelines • Lean Methodology Approach • Stakeholder Collaboration • Frequent & Effective Communication