How Big is Your Hospital’s Inventory? It’s a Key Piece of Supply Chain Data!

By Cheryl Flury

It’s a constant balance - reimbursements decline so expenses have to adjust. But how? With supply chain costs representing the second largest and fastest growing area of expense for hospitals – generally between 20-30% of the expense budget – it’s more important than ever for hospitals to have an accurate view of inventory. Better visibility, management and forecasting of inventory has a significant impact on your bottom line.
What’s the challenge? Many hospitals rely on par approaches to inventory replenishment, which grow less and less accurate over time, what with the winning combination of “ball-parking” and “best-guesses” of current supply levels. So conducting an expert, accurate physical inventory to understand supply levels is a key first step to inventory success. Then, layer in the continual management of supplies with accurate tracking and velocity reporting to help your hospital reduce inventory levels by 20 percent – and often it’s far more.
You can work with a company like BIG Inventory to bring expert resources to plan and conduct an organization’s physical inventory throughout the hospital, including all medical-surgical and clinical areas. Working with BIG Inventory, hospital supply chain leaders can manage this labor-intensive task without tying up internal resources. Then with an accurate picture of on-hand inventory, hospitals can more efficiently manage and forecast supplies.  More and more hospitals are using JumpTech’s cloud-based solutions, which provide visibility from demand-to-use, increasing the accuracy of supply replenishment and helping eliminate overstocking and stock-outs, supply hoarding and waste, and reduce costs.
With supplies being a large percentage of a hospital’s overall supply chain budget, it’s never been more important to manage your inventory, improve your inventory management processes and eliminate costs wherever you can. Check out the news brief in Healthcare Purchasing News