RECENT TRENDS IN INVENTORY MANAGEMENT IN HEALTHCARE

INTRODUCTION

Inventory management is a complex process. It uses a variety of data to keep track of the goods as they move through the process, including lot numbers, serial numbers, cost of goods, quantity of goods and the dates when they move through the process.

Considering the above facts, Hospaccx team work on the recent trends in inventory management in healthcare. This is macroficial study on recent trends in inventory management in healthcare, if you want to get into more detail you can contact info@hhbc.in

NEW TRENDS IN HEALTH CARE INVENTORY MANAGEMENT

1. Application of RFID in Health Care Inventory Management

Radio Frequency Identification (RFID) is a technology that can trace objects by connecting the objects to the internet. Companies can share the object information with any departments within the organization. While bar codes application requires line of sight identification, RFID tags are strong and do not require line-of-sight identification. This technology helps eliminate the need for human intervention. The technology uses tags that are programmable containing information regarding destination, weight, and a time stamp. The tags facilitate automation throughout the supply chain system. RFID enables warehouse space optimization and efficient goods tracking that reduce the cost and enhance customer service. RFID tags also enable real-time communication and offer accurate information.

There are some technical barriers in the implementation of RFID:

 

• RFID systems are not always reliable, putting the entire system at risk.
• Accuracy of RFID also depends on different factors such as tag placement, tagged object, angle of rotation, and read distance.
• The costs associated with RFID implementation are also very extensive.
• The costs include initial hardware and software, training, maintenance and continuous upgrade costs.

2. Vendor Managed Inventory (VMI)

Many retail firms in today’s society minimize their inventory cost significantly by using the VMI method. Under this method, the supplier is responsible for managing inventory and making decisions regarding replenishment. This method builds on the process of stockless inventory systems to some extent. The VMI method is different from the stockless inventory system in the sense that VMI moves responsibility for stock control to the supplier as the ordering process is automated. The accurate information on current stock levels and consumption is necessary to implement the VMI method successfully. However, managing such information flow within hospitals is difficult mentioned that VMI has several advantages with little need of administrative procedures at the hospital.

The advantages include fewer errors, improved information reliability and a 30% reduction in inventory. However, stated there is still a lack of trust in the supply chain process within the health care sector.

3. Centralization of Hospital Inventory

Because of recent economic crises and the recent high proportion of drug expenditures in healthcare costs, the centralization of warehouses owned and managed by multiple hospitals has been a trend in the pharmaceutical supply chain. It has proposed a logistic network that integrates a central pharmacy which negotiates with suppliers, collects hospital orders, as well as stores and distributes materials. However, many hospitals operate under a non-cooperative inventory management system.

4. IoT (Internet of Things) Thrust for Smart Inventory Management

The platform can slash the inventory tracking and monitoring efforts to a quarter. From a single location within the warehouse to multiple locations across a region, one can monitor stock levels and replenishment levels on a real-time basis without ever having to move around. IoT will seep into inventory management across all multiple operation processes like manufacturing, distribution, retail stores, etc.

5. Data on the Cloud

Small, Medium and Big enterprises are moving their inventory management process to cloud-based systems that offer flexible scalability at affordable pricing. Most importantly, on-cloud inventory management can also be distributed across all devices with varying screen sizes for uniform inventory management capabilities. The cost efficiency and operational swiftness that cloud systems give are also favouring a robust bottom-line for businesses.

6. Analytics to Drive Efficiency

Metrics like stock levels, EOQ, stock cycles have helped managers store optimum stock levels. However, with the explosive growth of Omni channel retail and multi-channel retail, the need for analytics that spawns multiple warehouse locations and SKUs (Stock Keeping Units) is a must.

Combined with cloud technology and ERP (Enterprise Resource Planning) reports, analytics will help enterprises to delve deeper into inventory data to derive meaningful information.

Data analytics will empower businesses to carry out certain metric findings that are increasingly becoming a steady presence amidst new trends in inventory management.

 

• Spares management
• Demand forecast
• Stock expiry period tracking
• Pilferage control

 

INVENTORY MANAGEMENT CHALLENGES IN THE HEALTHCARE

 

1. The health system’s cost savings goal

Incentives to build more accountable care-focused capabilities have given health systems good reason to evaluate their total cost structure. Health systems are determining the cost savings necessary to both survive and thrive in this environment.

2. Overutilization or variation in care

Some variation in care exists to ensure high quality outcomes, some differences in the procedures or products used is unwarranted by the needs of the patient – this what is called unjustified variation.

3. Health IT implementation

EHR and advanced analytics that help make droves of patient data actionable are high-cost capital investments. Capital budgets are typically set, meaning that large IT investments limit spending in other areas of capital, such as clinical or laboratory equipment.

4.Drug shortages

Drug shortages can occur without much warning to providers, though advocacy efforts are trying to improve early notification and response. Shortages of drugs (especially IV fluids, cardiovascular agents and surgical agents) can cause a variety of supply chain issues, such as having to keep back-up inventory of products in shortage or requiring the purchase of more expensive alternatives.

 

CONCLUSION

Inventory management is important in any facility or organization, but it more essential in hospitals since the inventory in hospitals is often used to save lives. Therefore, it must be managed accurately and efficiently at all times. With the modern trends in inventory management helps to maintain profitability and to negate competition.

Are you looking for inventory management for your healthcare organisation?

We can help you in managing your healthcare inventory, by closely working with your Hospital staff and understand all the back-end and front-end activities going on in the hospital. We will develop improvements that can:

 

• Reduce costs
• Increase inventory turns and inventory improvement
• Improve customer service and maintaining the right balance between high quality at low cost
• Performance improvement

It is the superficial and macro level study for more details kindly contact Hospaccx Healthcare business consulting Pvt. ltd on info@hhbc.in or hospaccx.india@gmail.com