What’s inside:
Could you be playing safe? Is there the mentality that to avoid stock-outs you don’t dare to run lean?
Our CEO, Shlomo Matityaho recently posted a blog on the issue of lean inventory management in healthcare, encouraging providers to gain confidence in adopting best practice by leveraging new technology. Here’s what he had to say.
Are you too nervous to run lean? In conversations with healthcare leaders, a recurring theme emerges: the fear of getting the most basic element of healthcare wrong by running out of supplies.
This understandable concern often leads to overstocking, and while there’s comfort in excess stock, it can have significant financial and operational consequences.
For many, lean inventory management remains a dream, but in my view, “playing safe” can be a nightmare for your finances.
The Cost of a Bloated Inventory
▶ Excess stock leads to high expiry waste, and increased purchasing costs
▶ Overstocking is a space and cost burden in warehouses and storerooms.
▶ High stock levels require high labor resources.
With tight reimbursements, high supply and labor costs, and the constant threat of supply chain disruptions, it’s tempting to err on the side of caution. But the hard truth is that excess inventory is a costly burden, it ties up capital, increases holding costs, and exposes organizations to the risk of obsolescence.
So, how can organizations go lean while retaining confidence in their healthcare delivery capabilities? How can they strike the right balance between high quality patient care and achieving a lean supply chain?
Using Technology to Implement Lean Inventory Management with Confidence
The answer lies in technology. By leveraging advanced analytics and real-time visibility into inventory levels, healthcare organizations can confidently reduce excess stock without compromising patient safety.
Lean inventory management doesn’t need to risk the provision of timely, high quality healthcare. In fact, the right system will help providers to better understand item-level demand by SKU/PAR location, and ensure that the management of each item in each location is appropriate, not just based on a one time audit, but continually monitored and adjusted to take account of seasonal trends, changing demand etc.
The right system protects providers’ ability to continually order the right supplies at the right locations, ensuring that patient care is carried out in a timely manner.
AI Technology to Support Lean Inventory Management
AI technology is giving providers enhanced capabilities to crunch all the numbers and keep on top of inventory levels and usage trends. Artificial intelligence, machine learning and predictive analytics swiftly analyze vast data sets, providing meaningful reports and insights that help providers to keep a step ahead of demand.
There needs to be a partnership between high quality data collection hardware and advanced AI software. This is the winning combination that delivers timely, accurate data to drive through healthcare excellence.
AI Automated Inventory Management System for Lean Supply Management
New innovation is giving healthcare providers added confidence in inventory visibility, control, and forecasting:
▶ Real-time inventory tracking: Smart cabinets, mobile handscanners, automated Kanban and PAR systems are all examples of advanced technology that provides full inventory visibility into supply levels across the entire organization.
▶ Automated point of use consumption tracking: This is a vital data metric for inventory management, medical billing, compliance and quality, as well as patient safety. New pioneering camera technology is the latest, and most effective way to automatically document every consumed item and it’s associated charge into hospital systems.
▶ Intelligent replenishment: This is the basic core of inventory management. Data-driven restocks optimize order quantities and reduce costs.
▶ Smart item management: Automated PAR adjustments ensure leaner, lower cost inventory that still meets demand.
▶ Predictive demand forecasting: Accurately anticipating future needs to ensure a perpetually balanced inventory.
By embracing technology, healthcare organizations can transform their supply chains, reduce their reliance on excess inventory, and achieve enhanced cost-reductions, cost-avoidance, and cost-management. Lean inventory management is a vital strategy for success.
Are you ready to take the leap to go lean?
Let’s discuss your tech-enabled lean supply chain
