The term "old school" is often applied (derisively) to methods that are now obsolete.
I met yesterday in a planning meeting for a major supply chain conference. There were a number of high powered staff from across the healthcare supply chain. With the rising spectre of health reform looming in the shadows, there is a lot of fear and uncertainty about the coming future. Many hospitals are struggling to stay profitable. This has put increased focus on the supply chain as a pathway to the savings and efficiency gains these hospitals are desperately seeking.
One of the hospital vice presidents talked about the dynamic in his hospital network. His direct boss is the VP of Supply Chain. He represents the "old school" mentality. In that mindset, the device manufacturers are seen as an enemy that must be beaten at all costs. He doesn't understand why his team can't simply pull the suppliers in a room and demand a 10% price decrease! Fortunately, his CFO is higher in the hierarchy. He understands that there is a need to find new ways to work with suppliers to achieve the desired results.
This particular VP has begun to approach his key suppliers and ask them how he can help reduce overall costs for both sides. One innovation that they came up with was a switch from daily daytime deliveries to fewer nighttime deliveries. By receiving his product in a consolidated manner during a slack period for the manufacturer, he made it much easier for both sides by reducing the overall cost to manage the goods. He is also able to maintain a solid working relationship with a key supplier who is highly valued by the clinical staff. That avoids unnecessary disruptions caused by abrupt switches to unfamiliar suppliers.
As this particular executive stated:
"If you focus on quality, you can help reduce costs.
If you focus on cost, you often increase costs and reduce quality."
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