Are you a hospital administrator looking for ways to reduce inventory costs?
You're not alone. Inventory costs account for a large percentage of a hospital's budget. Administrators are always looking for ways to reduce those expenses.
The good news is that once you have a system in place for reducing costs, it's easy to streamline things. By using the best-in-class logistics, you can even free up cash for the hospital and improve patient care!
What do you need to know about healthcare inventory management? Read on to look at the top benefits of reducing inventory costs.
Overcome Challenges Quickly
The first benefit is the ability to overcome challenges administrators face quickly. What are the challenges associated with inventory management in a healthcare setting?
One of the biggest challenges is the cost of medical supplies. In a hospital, every penny counts, and inventory costs can add up quickly.
Another challenge is the need to maintain a high level of accuracy. This is because medical supplies are often time-sensitive and must be used within a certain timeframe.
If they are not used within that timeframe, they may expire and become unusable. This can be a wasted expense for a hospital.
To avoid this, hospitals use the right analytics software to track and manage their inventory. Once the system is up and running, get ready for a wonderful change.
Supply chain managers will suddenly have a lot more time on their hands. They'll also be able to ensure that their medical supplies are used within the correct timeframe, avoiding waste.
Complexity of Healthcare Inventory Management
The healthcare inventory management scene is complex and ever-changing. It's a challenge for hospitals. To keep up with demand and ensure that patients have everything they need, hospitals need an efficient system.
The system accounts for ordering, receiving, and warehousing medical supplies. Thankfully, hospital supply chain solutions and analytics software optimize the process. This makes things fast, easy, and efficient.
Meet Regulatory Requirments
The system you use to cut inventory costs can also help with meeting regulatory requirements. There's a big need in the healthcare setting to comply with regulatory requirements. Hospitals have to follow certain regulations, and if they fail, the consequences are dire.
Strict regulations apply to ordering, receiving, and warehousing medical supplies. The truth is that many regulations can be complex and confusing.
Thankfully, supply chain solutions and analytics software can help hospitals to compliance. This way, they can be sure they are following all of the necessary regulations and that their medical supplies are safe and effective.
Easily Navigate Supply Chain Costs
Healthcare is a very expensive industry, and hospitals are always looking for ways to cut costs. By reducing inventory expenses, administrators will give their hospitals an immediate advantage. But how does this work exactly?
The right inventory software can help hospitals save money by reducing the inventory they must keep on hand. In addition, supply chain management solutions can help hospitals to negotiate better prices with suppliers. Instead of hunting down pricing information, everything will be in one convenient software system.
Provide Better Patient Care
Did you know that a night at the hospital can easily cost over $11,000 for patients? One of the biggest advantages of upgrading inventory processes is the ability to lower patient expenses while still providing top-notch care.
Supply chain management solutions are important in the healthcare industry because they can help to improve patient care. When hospitals have a good system in place, they can be sure that they can rest easy.
A good system means hospitals always have the supplies and resources needed to provide their patients with the best possible care. This can help to improve patient outcomes and satisfaction levels.
Free up Cash
Cutting inventory costs mean hospitals can invest in quality equipment. It's interesting to see all of the different types of equipment a hospital uses daily.
From patient monitors to scalpels, a lot goes into running things smoothly. Other pieces of hospital equipment that see daily action include hospital beds, ultrasound machines, and surgery tables. When administrators can free up cash, they can invest in new quality equipment.
Advice for Management
Now that you know the top benefits of cutting inventory costs, let's dive into the details. Here are some tips for reducing inventory costs at a hospital:
Review Inventory Regularly
Hospitals should review their inventory regularly to ensure they do not carry more stock than necessary. This can be done by analyzing past usage patterns and forecasting future demand.
Implement Just-In-Time Ordering
Just-in-time ordering is an inventory management technique that ensures that hospitals only order the number of supplies needed to meet current demand. This can help to reduce the amount of excess inventory on hand and avoid the need for storage costs.
Use Barcodes and RFID Tags
Barcodes and RFID tags can help hospitals to track their inventory more effectively. This information can determine when items need to reordering and to avoid stockouts.
Reduce the Number of SKUs
Hospitals can reduce inventory costs by reducing the number of SKUs they carry. This happens by consolidating suppliers and standardizing products.
Implement an Inventory Management System
An inventory management system can help hospitals to track their inventory more effectively and automate reordering. This can lead to significant cost savings over time.
Streamline Hospital Supply Chain Management
As you can see, there are several ways that hospitals can reduce inventory costs. Healthcare inventory management is all about making things work for you instead of against you. Hospitals can further reduce inventory costs by reducing the number of SKUs they carry and implementing an inventory management system.
Implementing these tips can help your hospital save money and improve patient care. If all of this sounds like a lot, don't worry!
BlueBin is here to help you every step of the way. Reach out today to discuss our BlueQ inventory intelligence solutions and supply chain analytics.