Interview with Shanaka Jayasinghe: The Critical Role of BOH Logistics in Designing Sustainable Hospital Facilities

In the heart of Melbourne, a new hospital is rising—a beacon of hope and a testament to modern healthcare innovation. This hospital is not just another addition to Australia's healthcare infrastructure; it is a symbol of a broader vision. As the cranes lift steel beams into place, the focus is not only on cutting-edge medical technology and patient care but also on the often-overlooked aspect of healthcare design: Back of House (BOH) logistics.

To delve into this critical aspect of hospital design, we sit down with Shanaka Jayasinghe, a partner at Trace Consultants. With years of experience in logistics and healthcare infrastructure, Jayasinghe provides invaluable insights into how BOH logistics can ensure consistency in patient care, enhance clinical outcomes, and support safe and efficient operations for both staff and patients.

Interviewer: Shanaka, thank you for joining us today. To start, could you explain why BOH logistics are so critical when designing new hospital facilities?

Shanaka Jayasinghe: Thank you for having me. BOH logistics play a crucial role in the overall functionality of a hospital. They ensure that all necessary supplies, equipment, and services are available where and when they are needed, which directly impacts patient care and clinical outcomes. Efficient BOH logistics support smooth operations, reduce waste, and improve the working environment for hospital staff, all of which are vital for maintaining high standards of healthcare.

Interviewer: That's fascinating. Could you elaborate on specific elements of BOH logistics, such as loading dock design and central stores layout, and their impact on hospital operations?

Shanaka Jayasinghe: Absolutely. The loading dock is the hospital's primary entry point for goods and supplies. Its design affects the speed and efficiency of deliveries, which in turn influences the entire supply chain. A well-designed loading dock can handle multiple deliveries simultaneously, reduce waiting times, and ensure quick turnover of supplies.

Central stores design and layout are equally important. These areas must be optimally organized to allow for easy access to supplies, efficient inventory management, and rapid restocking. Poorly designed storage areas can lead to delays, misplaced items, and even potential contamination, all of which can compromise patient care.

Interviewer: Shanaka, loading dock congestion can be a major issue in hospital logistics. How can hospitals manage and reduce congestion at their loading docks?

Shanaka Jayasinghe: Managing loading dock congestion is crucial for maintaining efficient hospital operations. Hospitals can reduce congestion through several strategies:

1. Scheduling Deliveries: Implementing a scheduled delivery system ensures that suppliers arrive at staggered times, reducing bottlenecks and wait times.
2. Design Optimisation: Designing the loading dock to accommodate multiple deliveries simultaneously can streamline the unloading process. This includes having enough bays and space for manoeuvring vehicles.
3. Technology Integration: Using technology such as real-time tracking and automated scheduling systems can help coordinate deliveries more effectively, providing visibility and reducing overlap.
4. Efficient Layout: Ensuring that the loading dock is well-organized with clear signage and designated areas for different types of deliveries can speed up the unloading process.

By adopting these measures, hospitals can significantly reduce loading dock congestion, ensuring smoother operations and timely delivery of essential supplies.

Interviewer: Space and capacity planning must be another critical aspect. How does it influence hospital logistics?

Shanaka Jayasinghe: Space and capacity planning are foundational elements of BOH logistics. Proper planning ensures that there is adequate space for all necessary functions, including storage, processing, and waste management. It also considers future growth and changes in hospital needs. By planning for flexibility and scalability, hospitals can avoid costly renovations and disruptions in the future.

Interviewer: Linen services and operating models seem like they would have a significant impact as well. Can you touch on these areas?

Shanaka Jayasinghe: Linen services are a perfect example of how BOH logistics impact daily operations. Efficient linen management ensures that clean linens are always available, which is critical for patient hygiene and infection control. This involves not only the transportation and storage of linens but also their cleaning and distribution within the hospital.

Operating models need to be tailored to the specific needs of the hospital. They dictate how services are provided, who is responsible for various tasks, and how different departments interact. A well-designed operating model ensures that all parts of the hospital work together seamlessly, which enhances efficiency and improves patient outcomes.

Interviewer: Production kitchens and waste management are also crucial components of BOH logistics. How do these areas contribute to the overall efficiency and sustainability of hospital operations?

Shanaka Jayasinghe: Production kitchens are responsible for preparing meals for patients, staff, and visitors. Their design must facilitate efficient food preparation, storage, and distribution while adhering to strict health and safety standards. An efficient kitchen layout can reduce food waste, improve meal delivery times, and ensure that dietary requirements are met.

Waste management is another critical area. Hospitals generate a significant amount of waste, including hazardous materials. Effective waste management systems ensure that waste is handled safely and disposed of properly, minimizing environmental impact and maintaining a safe environment for patients and staff.

Interviewer: Shanaka, clinical waste management is a significant concern for hospitals due to its potential impact on both health and the environment. Can you discuss the importance of effective clinical waste management in hospital logistics and the strategies used to handle it efficiently?

Shanaka Jayasinghe: Effective clinical waste management is crucial in hospital logistics because it directly impacts both patient safety and environmental sustainability. Hospitals generate a substantial amount of clinical waste, including sharps, infectious materials, and hazardous substances, which require careful handling and disposal to prevent contamination and infection.

Several strategies are employed to manage clinical waste efficiently:

1. Segregation at Source: Waste is segregated at the point of generation into categories such as general waste, recyclable waste, and hazardous waste. This segregation helps in proper disposal and recycling, reducing the overall environmental impact.
2. Proper Storage: Designated storage areas for clinical waste are essential. These areas should be secure, well-ventilated, and clearly marked to prevent unauthorized access and accidental exposure.
3. Regular Collection and Disposal: Hospitals must have a robust schedule for the collection and disposal of clinical waste. This ensures that waste does not accumulate and pose a risk to patients and staff. Partnering with licensed waste disposal companies that follow stringent regulatory guidelines is crucial.
4. Training and Awareness: Hospital staff must be regularly trained on proper waste management practices. This includes the correct segregation, handling, and disposal of clinical waste, as well as the use of personal protective equipment (PPE) to minimize risk.
5. Use of Technology: Advanced tracking systems can monitor waste from the point of generation to its final disposal. This enhances accountability and ensures compliance with environmental regulations.
6. Recycling and Minimisation: Where possible, hospitals should adopt practices that minimise waste generation and promote recycling. For example, using reusable materials and devices instead of single-use items can significantly reduce clinical waste.

By implementing these strategies, hospitals can manage clinical waste more effectively, ensuring a safer environment for patients and staff and reducing their environmental footprint.

Interviewer: How do you optimise the process from dock to ward?

Shanaka Jayasinghe: Dock to ward optimisation involves streamlining the entire supply chain from the moment goods arrive at the loading dock to their final destination within the hospital. This includes efficient inventory management, rapid restocking, and minimizing delays. Technology plays a key role in this process, with automated systems and real-time tracking ensuring that supplies are always available when needed.

Interviewer: Speaking of technology, how does it integrate with BOH logistics to enhance hospital operations?

Shanaka Jayasinghe: Technology is a game-changer for BOH logistics. Advanced software systems can manage inventory, track deliveries, and predict supply needs based on usage patterns. Automation can speed up processes and reduce human error. For example, automated guided vehicles (AGVs) can transport supplies throughout the hospital, freeing up staff to focus on patient care.

Interviewer: When reviewing infrastructure design, how important is it to consider the operating model, technology, and supply chain processes?

Shanaka Jayasinghe: It's absolutely critical. The infrastructure design should support the hospital's operating model and incorporate the latest technology and efficient supply chain processes. This holistic approach ensures that the hospital operates smoothly and efficiently, which ultimately benefits patient care and clinical outcomes. For example, designing spaces that accommodate automated systems or future technological upgrades can save time and money in the long run.

Interviewer: Finally, what advice would you give to government agencies, building authorities, and architectural design firms when planning new hospital facilities?

Shanaka Jayasinghe: My advice would be to take a comprehensive approach to planning. Consider every aspect of BOH logistics from the outset, including loading dock design, central stores layout, space and capacity planning, linen services, production kitchens, and waste management. Integrate the latest technology and ensure that the infrastructure supports efficient supply chain processes. By doing so, you will create a hospital that is not only functional and efficient but also capable of providing the highest level of care for patients.

Interviewer: Shanaka, thank you for your invaluable insights. As we look towards the future of healthcare infrastructure, it's clear that BOH logistics will play a pivotal role in shaping efficient, sustainable, and patient-centric hospital environments.

This interview provides a deep dive into the critical aspects of BOH logistics in hospital design, tailored to the needs of large Australian Government Agencies, Building Authorities, and Architectural Design Firms. By considering these logistics principles, we can build hospital facilities that ensure consistency in patient care, clinical outcomes, and efficient operations for staff and patients.

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Unlocking End-to-End Supply Chain Visibility for ANZ Executives

Visibility remains a pivotal aim for supply chain professionals across Australia and New Zealand. The merits, ranging from cost reduction to customer satisfaction enhancement, have been extensively highlighted. So, what impediments are businesses encountering on their journey to achieve full visibility? Here are three prominent reasons:

1. Incomplete Implementations: Many aim for comprehensive visibility while designing new supply chain processes. However, real-world challenges, such as budget constraints or shifting priorities, lead to only partial solutions being executed. This often leaves teams grappling with less-than-ideal systems.
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2. Prohibitive Integration Costs: It's not uncommon to witness projects where integration expenses – be it among ERP systems, supplier platforms, financial tools, or reporting instruments – skyrocket. This becomes a formidable barrier, making visibility an expensive endeavour.
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3. Fragmented Systems with Siloed Reporting: ERPs might trace inventory up to a point. But, once the inventory moves – say to a warehouse, branch, or vehicle – that traceability diminishes. The item, though dispatched, is no longer under systematic surveillance.

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Yet, the landscape is not devoid of practical solutions. For instance, a food and beverage client, striving to amplify supplier performance and enhance DIFOT metrics, sought a system to monitor supplier efficacy. While a comprehensive ERP deployment was on the horizon, they needed an immediate remedy. We, at trace, employed the Microsoft PowerApps suite to craft a tool for their Loading Dock personnel. This tool not only pinpointed delivery discrepancies but also integrated seamlessly with existing systems, presenting real-time supplier performance insights.

Harnessing Pragmatic Solutions with trace

The case mentioned above epitomises how immediate, tactical solutions can fulfil the supply chain vision of unhindered visibility. At trace, our seasoned professionals assist ANZ clients, offering tools and strategies tailored to unique challenges. Rapid benefits can be harvested through platforms like Microsoft PowerApps, with more expansive, investment-heavy solutions considered subsequently.

Intrigued by our approach and keen to delve deeper?

‍Reach out to the trace team today. Let's explore success stories and how we can collaborate to enhance your supply chain visibility.

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Why Supply Chain Investments Are Crucial in 2025

In an era of global disruption, rising costs, and evolving customer expectations, the supply chain has emerged as a strategic enabler for business success. For CFOs and CEOs in Australia and New Zealand, 2025 presents a pivotal moment to invest in the supply chain to unlock value, boost efficiency, and drive sustainable growth.

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The Business Case for Supply Chain Investments

Supply chain inefficiencies can result in lost revenue, increased operating costs, and missed market opportunities. By strategically investing in network optimisation, warehouse design, advanced planning solutions, procurement transformation, supply management, automation, and emerging supply chain technologies, organisations can secure competitive advantages.

1. Network Optimisation: Reducing Costs and Enhancing Service Levels

Why It Matters:
An optimised supply chain network aligns distribution centres, transportation routes, and inventory positioning with demand patterns. For CFOs and CEOs, this means minimising costs while maintaining service excellence.

Key Benefits:

• Reduced Costs: Identify redundant facilities and optimise transport routes.
• Improved Responsiveness: Position inventory closer to demand hubs.
• Sustainability Gains: Reduce emissions through efficient logistics planning.

Example in Action:
Trace Consultants recently partnered with a leading ANZ FMCG company, delivering a 15% reduction in transport costs through network redesign while improving delivery lead times.

2. Warehouse Design: Building for Efficiency and Scalability

Why It Matters:
Warehouses are not just storage spaces—they are pivotal hubs for efficiency. Investing in modern warehouse design ensures scalability, operational efficiency, and seamless integration with digital systems.

Key Features of Effective Warehouse Design:

• Optimised Layouts: Reduce travel time and increase throughput.
• Technology Integration: Enable automation and real-time inventory visibility.
• Sustainability Focus: Incorporate energy-efficient designs.

Example in Action:
Trace Consultants collaborated with an ANZ retailer to design a state-of-the-art distribution centre, integrating robotics for picking and packing, resulting in a 20% productivity boost.

3. Advanced Planning Solutions: Improving Forecast Accuracy

Why It Matters:
Advanced planning solutions (APS) enable businesses to better anticipate demand, optimise inventory, and align supply with market needs. In 2025, APS is a must-have for organisations seeking agility.

Key Benefits:

• Improved Forecast Accuracy: Minimise stockouts and overstocking.
• Scenario Planning: Adapt quickly to market disruptions.
• Integrated Decision-Making: Link demand planning with production and logistics.

Example in Action:
A mining company in Australia leveraged APS implemented by Trace Consultants to reduce inventory holding costs by 12% while meeting customer demand during market volatility.

4. Procurement Transformation: Driving Cost Savings and Sustainability

Why It Matters:
Procurement is more than cost-cutting; it’s a strategic function that drives value. Transforming procurement processes ensures organisations can optimise supplier relationships, reduce costs, and meet regulatory requirements.

Key Focus Areas:

• Spend Analysis: Identify opportunities for cost rationalisation.
• Sustainable Procurement: Align sourcing with ESG goals.
• Supplier Collaboration: Build partnerships to unlock value.

Example in Action:
Trace Consultants helped a healthcare organisation consolidate supplier contracts, achieving $10 million in annualised savings while meeting modern slavery compliance standards.

5. Supply Management: Enhancing Operational Efficiency

Why It Matters:
Effective supply management balances working capital and ensures service levels are met. In 2025, organisations must leverage technology and data to drive supply chain visibility.

Key Benefits:

• Improved Inventory Turns: Minimise excess stock.
• Real-Time Visibility: Mitigate risks and disruptions.
• Customer Satisfaction: Ensure availability of high-demand products.

Example in Action:
An ANZ manufacturer used Trace Consultants' expertise to implement real-time supply chain dashboards, reducing order cycle times by 25%.

6. Automation: Scaling Operations with Robotics and AI

Why It Matters:
Automation reduces human error, improves speed, and enhances scalability. CFOs and CEOs must invest in automation to stay competitive in a fast-paced market.

Key Applications:

• Warehouse Automation: Robotics for picking and packing.
• Transport Automation: Route optimisation and autonomous vehicles.
• Process Automation: AI-driven demand planning and order processing.

Example in Action:
A retail client partnered with Trace Consultants to implement robotic process automation (RPA), cutting labour costs by 18% and improving order accuracy.

7. New Supply Chain Technologies: Driving Digital Transformation

Why It Matters:
Emerging technologies, such as blockchain, IoT, and low-code/no-code platforms, are transforming supply chains. They provide transparency, efficiency, and resilience.

Key Innovations:

• Blockchain: Enhance traceability and compliance.
• IoT: Enable real-time tracking of assets and inventory.
• Low-Code/No-Code: Rapidly deploy customised solutions.

Example in Action:
Trace Consultants successfully deployed Microsoft Power Apps for a leading ANZ hospitality group, streamlining asset management with real-time data capture and reporting.

Why 2025 Is the Year to Act

The global business environment is becoming increasingly complex. Geopolitical tensions, inflationary pressures, and evolving customer expectations are placing supply chains under the microscope. CFOs and CEOs in ANZ must act decisively to ensure their organisations are not left behind.

How Trace Consultants Can Help

Trace Consultants is a leading supply chain advisory firm specialising in helping Australian and New Zealand organisations achieve supply chain excellence. Our expertise spans:

• Network Optimisation
• Warehouse Design and Operations
• Advanced Planning Solutions
• Procurement Transformation
• Automation and Technology Integration

By partnering with Trace Consultants, your organisation can unlock cost savings, improve service levels, and achieve sustainable growth.

Supply chain investments in 2025 are no longer optional—they are essential. For CFOs and CEOs, the opportunity to drive cost efficiencies, improve operational performance, and build resilient organisations lies in strategic supply chain initiatives.

Is your organisation ready to invest in the future of supply chain excellence?