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American Red Cross: Blood Center
Bus Adm 786 Spring 2013
A Lubar School Supply Chain Student Project
Hongping ZhuFadia Ahlat
Erik WrolstadAwais Mazhar
Unmesh Deshpande
Scope
• Company Profile
• Blood Supply Chain
• Problems Faced
• Improvement opportunities & method
• Proposed solution
• Inferences & Closing Remarks
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Company Profile
• A humanitarian organization, not a government agency
• The American Red Cross is a network of-– More than 600 locally supported chapters– 36 Blood Services regions and 7 Blood Services divisions– Nearly 20 International Offices
• What we do--disaster relief, supporting America’s military families, health and safety training & education, life saving blood and international services
• Mission vision of ARC – to fulfill the needs for the most safe, reliable and cost-effective blood,
plasma and tissue services
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Blood Supply Chain• Life cycle of blood products
– Platelets: the longest shelf life is 7 days. – Red Blood Cells: 35-42 days at refrigerated temperatures – Plasma: can be stored frozen for up to one year
• Whole blood donation– occurs at a blood bank but they are often set up at a location in the
community such as a shopping center, workplace or school– usually stored in a flexible plastic bag that also contains certain
chemicals
• Blood inventory management– The optimal inventory level for a specific blood is found as a
compromise between the shortage rate and the outdate rate– Time availability and careful preservation of blood
• Blood banking and distribution system
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Problems Faced
• Excess Inventory
• Shortage in supply
• Distribution network problems
• Supply chain strategy options
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Improvement opportunities & method
• Excess Inventory:– Short life of some blood products
– More accurate forecasting
• Shortage in Supply– Reduce Lead-time
– More donations
– More accurate forecasting
• Distribution network problems– Root Cause
– 6 Hospitals making up 40% of inventory availability
– Inaccurate & unreliable forecasting: Contingencies
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# Business Aspect Description # Parameter Table Remark
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A
• Template used for brainstorming
Proposed Solution
• Making appointments for the 85% of repeat donors
• Increase the integration of information about the Hospital blood banks demand
• Competitive pricing of blood products – ensure efficient distribution and minimize outdating.
• Collaborate with the Centers for Disease control and Prevention (CDC)
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Looking ahead
• Increasing number of paid employees over volunteers
• Developing a phone/online scheduling system, also onsite scheduling
• Contingency planning for excess demand
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• Inventory Sufficiency and Increasing Fill Rates
• Reduction of costs incurred from shortage rates and outdate rates: lower shortage and outdate rates
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Benefits Anaysis
Benefits Analysis
• Commit to a Better Pricing Strategy:
• Have a more organized and stable distribution network system:
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• Recap:– Inventory management problems– Current inventory policies– Suggestions– Pricing policy
• Concluding statement:
The ARC in Cleveland should create a plan that combines a rolling quarterly inventory plan that also takes into account season trends or needs.
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Inferences & Closing Remarks
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Thank You!