Introduction
SouthCoast Health is a not-for-profit, community-based health system providing high quality health services throughout southeastern Massachusetts and Rhode Island. Tobey Hospital is part of the SouthCoast Health System, and is located in Wareham, Massachusetts. It offers state-of-the-art medical procedures in its surgical wing and Intensive Care Unit, as well as 24/7 emergency care. Tobey strives for excellence and embraces technology, not just for clinical care delivery but also for process improvement and operational efficiency.
Tobey wanted to improve its healthcare inventory management by moving from a manual PAR-level system to an automated solution. The aim was in to reduce labor, increase supply chain visibility and generate meaningful data that could be used to drive supply forecasts and purchasing. The introduction of Wireless Weight-Based PAR Bins illustrates Tobey’s forward-thinking approach to adopting new technology and leveraging the most advanced tools to transform PAR Level Inventory Control from a manual system into a fully autonomous solution.
The Goal: Fully Automated Healthcare Inventory Management
The Supply Chain team at Tobey Hospital wanted to add supply chain automation in its healthcare inventory in order to more effectively oversee their bulk supplies. They were using a manual system which they found to be labor intensive and were keen to improve the quality of inventory data analytics to help drive through smarter supply chain decisions.
They also wanted to streamline workflows and reduce the labor involved in maintaining the availability of medical supplies to frontline staff. In addition, they were keen to improve their financial management of medical supplies with higher quality data.
“We were eager to leverage advanced technology to reduce manual management of medical supplies in our TERU supply room, ensuring accurate inventory data flow and timely replenishment.”
Challenges in PAR Level Management
Tobey Hospital had a manual PAR replenishment process using 3 logistics staff who were involved in inventory turns and stock counts. They needed better oversight of their inventory to prevent surpluses, shortages and stock-outs. They felt that by moving from a manual to an automated system they would be able to improve stock management, supply chain visibility, optimize PAR levels and achieve a balanced inventory.
They selected IDENTI Medical as a health-tech partner, as IDENTI is pioneering digital scale technology and they were keen to tap into the most advanced PAR solution on the market. Tobey wanted to run a pilot in its Trauma Emergency Room Unit (TERU) as this location requires a wide range of medical supplies to be readily available, to meet the unpredictable demands of this critical care location. They were keen to trial an automated PAR system and see how it supported a complex area of care delivery.
IDENTI’s PAR Weighing bins provided a fully automated solution, leaving nursing staff to simply ‘grab and go’, a big advantage in this complex surgical setting. Being fully autonomous, they don’t require constant counts and attention from Materials Management, instead the AI-powered smart bins inventory solution, report on their own stock levels and generate a restock order at the appropriate time. This unprecedented level of automation appealed to Tobey, who embrace innovation, and decided to trial the new technology in this challenging healthcare setting.
The Solution: AI-driven Wireless Weight-Based Bins
IDENTI’s Wireless Weight-Based Bin is groundbreaking technology, that can transform healthcare inventory management in Tobey’s emergency room. IDENTI technology is the only wireless, smart inventory bin with an integrated scale and dynamic digital display on the market.
IDENTI is leading the sector in AI-powered inventory solutions, keen to apply advanced solutions into a market filled with cumbersome weight-based units that lack the ability and flexibility to seamlessly slot into existing supplies spaces and configurations. IDENTI’s PAR Weighing Bin has the advantage of being able to slot into existing hardware, such as shelving, racks and cabinets, so that the provider does not need to replace their supply room infrastructure to accommodate the new technology.
The team at Tobey Hospital liked the fact that the bins would convert their manual supply spaces into a digital hub, without the need for any new hardware or unnecessary disruption. It was also important to them to optimize their supply space without having to make any compromises when moving from manual to digital medical supply chain automation.
Implementation process
IDENTI installed more than 300 Wireless Weight-Based PAR Bins into Tobey’s TERU supply room. Working in partnership with Tobey, IDENTI planned the optimal layout of the supply space, so that all supplies were appropriately placed, based on usage patterns.
The new bins would be part of a hybrid solution that incorporated some manually managed supplies that remained in blue bins and which were placed alongside the new green smart bins on the same portable racking and wall storage units. The flexibility of placing the individual bins in any location, and being able to change the layout at any time, appealed to Tobey, who were keen to ensure that staff have easy access to supplies, however they are managed.
The Tobey Team selected the SKUs they wanted to be automatically managed, and those slower moving supplies that could continue to be manually managed. This ensured the automated management of their fast-moving supplies. SKUs such as tubes, blades, creams, masks, catheters, and IV solution were added to the PAR Weighing Bins, creating an instantly automated system.
“The IDENTI Wireless PAR Weighing Bin is proving to be an effective tool to better understand our usage of medical supplies and to utilize data for more precise decision making”
The Result: Complete Supply Chain Visibility
Tobey Hospital used the PAR Weighing Bin to manage SKUs with a value of $16,000 in one TERU supply room. The new system streamlined their supply chain processes and ensured prompt replenishment.
The introduction of IDENTI’s Wireless Weighing Bin resulted in many benefits for Tobey Hospital:
Reduction of inventory based on accurate supply tracking
Accurate inventory tracking enables healthcare organizations to optimize stock levels, reduce carrying costs, and prevent stockouts or overstocking, leading to improved clinical and financial performance.
Outcome: By switched to AI-powered smart PAR bins, Tobey Hospital achieved a one-time inventory reduction of 44%, saving $7,723 in just one room.
Cost reductions after switching to data-driven procurement
Data-driven procurement is based on using inventory data, to identify areas of inefficiency, and cost-saving opportunities, reducing waste and supporting more informed sourcing decisions.
Outcome: Tobey was able to optimize the PAR levels of supplies in TERU based upon data trend-analyses. The system recommended Max Level adjustments of 50% across 150 SKUs which, when implemented are projected will save a further $7,340.
System optimization steered by the system itself
When introducing a new system, it’s important to continually improve resource allocations and optimize supply management.
Outcome: The AI software identified 21 items that were “zero SKU” and it was decided to move these to manual management and utilize the bins for faster moving products.
Labor reductions improve staff capacity
By reducing labor through automation and process optimization, healthcare facilities can ensure that their teams are optimally utilized for the most productive tasks.
Outcome: Materials Management labor previously cost $74k a year and was reduced by 9%, which has a cumulative annual cost-saving of $20,449. Nursing labor reduced by 2%, which has a cumulative annual cost-saving of 3,266. The hospital reports that the reduction of labor involved in monitoring medical supplies has freed materials management staff to focus on other more crucial activities. In addition, the automation of supply chain activity at the point of care resulted in a reduction of time spent on non-nursing tasks by the nursing team.
It is noted that this was a pilot study in one TERU area. If this model was to be repeated in additional supply rooms then the benefits and cost savings would be even more impactful.
Innovation in Healthcare Inventory Management
Tobey Hospital’s adoption of IDENTI’s Wireless Weight-Based PAR System exemplifies its commitment to innovation, efficiency, and excellence in healthcare. By modernizing its inventory management processes, the hospital not only achieved significant cost savings but also enhanced operational workflows and improved supply chain visibility.
Tobey Hospital continues to lead by example, demonstrating how strategic technological investments can drive meaningful improvements across the healthcare spectrum. Plans are already underway to expand the system to additional areas, ensuring that the benefits of this forward-thinking approach extend throughout the facility.
