The 5 P’s your inventory tracking system needs to get right

What’s inside:

Looking to switch to an automated inventory management system?

New healthcare technology is everywhere, but the best systems solve your healthcare supply chain challenges.

We take a look at how technology can reduce the supply chain burden on perioperative nurses.

So, if you’re assessing the current health-tech market, you better make sure you have these 5 Ps covered!

  1. Processes
  2. Procurement
  3. Profits
  4. Patient safety
  5. Partnerships

When selecting an automated inventory management system, it’s easy to get distracted by the technology and features.

However, many people come at it from the other angle, and ask, “What problems can it solve?”

We’ve put together 5 important P’s that any new medical inventory management software needs to enhance.

 

▶️ Processes

Nurse satisfaction increased from 53% to 90% after the introduction of automated supply chain processes – see details in our case study on the impact of an automated Kanban and PAR system.”

Healthcare providers can be held back by long-winded processes, and manual tasks. Sometimes siloed systems result in duplicate data entry, and inefficient automation tools can trigger lengthy manual workarounds.

With a backdrop of staff shortages, it’s time to use automation to lighten the admin load on perioperative nurses, giving them more time to focus on patient care. It affects staff morale too:

Automated processes are able to deliver complete and correct data that generates vital supply chain analytics. This valuable business intelligence gives management improved insight and control of their inventory.

 

▶️ Procurement

Excess inventory reduced by between $2-3 Million in a case study on the installation of smart cabinet technology.

There’s pressure on providers to ensure the continuous supply of inventory. But without clear inventory vision, there’s a fair degree of guesswork involved, and this can lead to surplus stock and wastage.

Increasingly new technology is able not just to monitor supplies, but to generate automated requisitions when the order point is reached.

Another advantage of automated systems is that utilization data can be fed back to inform restocks – data-driven procurement is the way to go.

Systems that provide real-time data support smarter procurement to ensure a right-size, perpetual inventory, and reduce supply chain costs

New point of use surgical supply data capture technology is using advanced technology to transform the task of POU utilzation.

 

▶️ Profits

OR Profitability typically increases by 15% after switching to supply chain automation.

Supply chain automation gives providers two opportunities to boost profits:

  • Reduced costs: Data can be used to negotiate better vendor contracts, reduce inventory levels, and lower wastage. Medical inventory is generally the second largest expense for providers, so improved management can result in high-dollar savings.
  • Improved revenue: Accurate documentation of surgical supply consumption can help optimize case revenue by ensuring medical billing contains correct data on all the billable items used.

 

Automated inventory systems are helping hospitals, health systems, and ASCs to lower costs and optimize reimbursement – and the result is healthier profits.

 

▶️ Patient safety

The value of expired items held in stock reduced by 97.3% after installing automated inventory management technology – see our case study.

Efficient supply chain management enhances patient safety.

  • Ensuring the right inventory is available, in the right place, and at the right time, prevents risky surgery delays and cancellations.
  • Effective expiry management ensures no unsafe items make it past the red line.
  • Accurate and digital utilization documentation supports robust recall management (and organizations from litigation costs).

 

Smart supply chain technology is providing an additional layer of patient protection.

 

▶️ Partnerships

51% of surveyed US healthcare organizations were considering AI/machine learning in order to automate manual processes and reduce costs in 2022 according to Statista data.  

Modern day healthcare relies on closer supply chain partnerships, and technology has a key role in helping to increase trust and transparency between stakeholders.

Without precise inventory tracking, vendor relationships can be harmed by disputes, and contract management is impaired.

Technology that provides shared access to inventory data is changing the game – ensuring that all parties can see the real picture. Having a joint understanding of stock levels can also open the door to pay-as-you-go consignment arrangements.

 

When researching automation options, providers need to look at technology that provides end-to-end tracking – from enrollment to the point of care and make sure that the system solves current challenges. These 5 Ps are a good place to start.

Find out more about our line of digital inventory management solutions – and gain a better understanding of how they can transform your healthcare management with precision data.

 

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About the author

Olivia Walker is IDENTI’s Global Marketing Director and has a wealth of experience in the health-tech sector. Her innovative marketing strategies have successfully driven IDENTI’s growth in multiple worldwide markets. Her strength is the ability to identify what truly resonates within the industry. She is passionate about building relationships and her expertise lies in creating meaningful partnerships with healthcare providers, distributors, and suppliers.