Many hospitals have a “just in case” mindset when it comes to their hospital inventory. This mindset has them worrying so much about potential risks that they are only increasing waste, leading to overspending on their inventory budget.
At its core, this mindset originates from a lack of visibility and tracking within the hospital’s inventory altogether. Departments are running on providers’ memories and assumptions, or even on processes they have tried to put in place independently. Whatever it might be, this manual way of keeping inventory is leading to increased waste and risk across the board.
Fortunately, there is a way that hospitals can reduce waste without increasing risk within their inventory. All it takes is a shift in mindset and a better inventory management system.
Shift Out of the Overstocking Mindset
Overstocking can seem like the safe bet in the moment. If you’re unsure how much product you have left, staff need to track inventory and monitor stock levels instead of relying on estimates, which can make it tempting to order a few more than normal to really make sure you have enough to last. However, those “few more” can add up if you stick to this mindset every time you order a product.
Eventually, you’ll have dozens more of a product than you actually need, which inevitably leads to some of it expiring. With expiration comes increased risk, and ordering based only on what you think will lead to risk, too. Inventory management is important here because it helps you avoid too much inventory and excess inventory.
The best way to shift out of an overstocking mindset is to take the steps to implement better inventory tracking and management as a whole, including maintaining accurate stock levels. Risk will deplete once that mindset is erased.
Track The Usage of Inventory More Closely With Inventory Management Software
The ideal way to minimize risk in the inventory process is to implement better tracking practices that create stronger inventory control and clearer inventory processes throughout the hospital and departments. When you can see exactly what is being used, when it is being used, and by which department, you have the inventory data and inventory levels needed to make more informed decisions about how much product you will order, when you will order it, and which department gets what amount.
Proper inventory management could improve operational efficiency by 20% and could reduce stockout risks by 30%. With this data, the risk of not ordering enough inventory or ordering too much that leads to expiration, decreases. Your hospital is effectively reducing waste, all while decreasing waste, all from better inventory optimization.
Ensure Visibility Over All Inventory Choices With The Multi-Location Inventory Management System, Track
For reduced waste without increased risk, Insysiv’s Track is inventory management software with key features built for hospital use. Track provides a scalable solution, so labs, both large and small, can have an irrefutable answer to their inventory management problems.
Track, with its RFID capabilities, can scan inventory without a direct line of sight, while also supporting barcode scanning when needed to eliminate double and triple documentation that is found in cardiovascular laboratories, interventional radiology suites, and operating rooms. It will connect to Wi-Fi, supporting real-time inventory tracking and stronger inventory visibility with data that stays up to date and usable across multiple locations throughout the hospital.
Track can help ensure that no serial numbers are entered incorrectly, that low stock alerts support automated stock replenishment when products need to be reordered, and that inventory items are tracked throughout the hospital to ensure overall visibility.
Only Purchase What You Need With Velocity
To go above and beyond, truly ensuring that risk is taken off the table and waste is reduced, Insysiv’s Velocity uses advanced inventory management tools to streamline operations and work alongside
Track to ensure proper ordering based on data-driven decisions throughout the departments. Velocity utilizes predictive purchasing algorithms, and predictive analytics uses historical data to forecast demand, to not only help automatically order products when necessary but also find savings within those purchases. This also supports purchase orders, vendor management, and broader supply chain management decisions.
On top of that, Velocity stays on top of any expiration date risks, ensuring that products are utilized before they have the chance to expire, reducing waste. Velocity also offers forecasting capabilities, allowing your hospital to anticipate demand for these products so you can make vendor commitments to secure savings and maintain optimal stock levels through demand forecasting.
Less Overstocking Means Less Expired Products
The largest provider of waste and risk within the hospital is expired products. For one, expired products lead to waste as they can not be utilized, and the money spent on them is wasted. Additionally, there is a risk that expired products are not recognized as such when appointments and promises are made, which can disrupt care, force rescheduling, and hurt customer satisfaction.
Overstocking is equal to overspending. That budget could be spent on other items or necessities, but instead, it results in expired products. Hospitals need to manage stock through better inventory management practices, not by overstocking. Implementing better ways of managing inventory and moving away from the overstocking mindset can effectively reduce waste and risk in your hospital.
Done well, this improves inventory performance and overall operational efficiency.
With Better Visibility, Patients Are Better Tended To
Better visibility is what leads to overall improvement in a hospital’s inventory management system, but it also trickles down to better patient care at the end of the day. With better visibility, there is less of a risk of a patient not getting the care they are scheduled to get because of expired products or a faulty report of the number of available products. Visibility allows providers to work with true and accurate numbers. At the end of the day, the less waste and risk, and the increase of visibility and better inventory management are all to ensure patients get the care they deserve in your hospital.
With Insysiv’s Track and Velocity, reduced waste and decreased risk are possible. If you have further questions or wish to implement these systems in your hospital, contact the team at Insysiv.