Industry Report: What Every Hospital Supply Chain Leader Needs to Know About the Impact of Inventory on Financial Reporting
Today in many organizations, the supply chain leader reports to the CFO. In others, the head of supply chain will be called upon by the C-suite to report how effectively supply chain efforts are impacting financial results. So it follows that supply chain leaders need to understand financial matters at a strategic level, in order to help align their goals and initiatives with the larger organization. This paper briefly examines some of the key areas that supply chain – particularly inventory – can impact, helping foster conversations between supply chain and finance.
Industry Report: Improving Hospital Supply Chain Processes
Jump Technologies recently interviewed several healthcare system supply chain leaders to gain deeper insights into their plans for driving change and improving results. While there are similarities – for example, each business leader noted ways in which they’re engaged in driving greater automation of their supply chain processes to capitalize on cost reductions – there were also unique views on how to drive more savings, improve supply chain strategies, leverage technology, and expand supply chain responsibilities and oversight. These insights can help identify new ways to improve supply chain strategy within other provider organizations; many are ideas that can be implemented within the next 12 months.
Industry Report: Today's Hospital Receiving Processes
This report looks briefly at the current state of hospital receiving, outlines some of the reported problems with current processes and makes recommendations for improvements. To compile this report four acute care hospitals were interviewed and participants discussed the current challenges being experienced with their receiving processes.
Mobile Technology—An Essential Component of the Next Generation Healthcare Supply Chain
Nearly every hospital in America has implemented an Enterprise Resource Planning (ERP) system, yet still report stock-outs, overstocking, waste due to expiring supplies, and high labor expenses due to manual processes and lower than planned savings from supply chain. According to a recent report on ERP implementations by Panorama Consulting Solutions:
- 59% of projects exceeded their planned budgets
- 53% of projects exceeded their planned durations
- 56% of organizations received less than 50% of the measurable benefits they anticipated from their ERP initiatives
While ERP system vendors are working to redesign their offerings, hospitals may be wary – with the potential for years of development, months or years of implementation time, high initial investment costs and ongoing fees, high consulting costs during the implementation and beyond, and a poor track record of return on investment (ROI), ERP systems may or may not be able to meet the challenges of today’s hospital supply chain. The answer may be in adding new cloud- and mobile-technology to an existing ERP.
Industry Report: Inventory Management versus PAR Replenishment
Nearly every hospital in America has invested in an Enterprise Resource Planning (ERP) system and implemented business processes to support inventory management. Yet hospitals still report stock-outs, overstocking, hoarding, waste, maverick spending and high labor costs. Why does this gap between business process, technology and actual results still exist? Because most hospitals aren’t doing inventory management. Instead, they’re practicing “PAR Replenishment.”
Industry Report: 2Bin Inventory Management in Hospitals
Inventory management is not always a one-size-fits-all process. Hospitals and health systems use a wide range of products and supplies to deliver patient care, ranging from very low cost, high velocity items to high-cost, regulated, sometimes implantable products that need to be managed and tracked as individual items.
Reducing Costs by Improving Process and Technology for Inventory Management in Hospitals
The ability to reduce costs, improve business operations and improve quality by improving supply chain processes has reached legendary proportions. And, huge improvements have been achieved in the last decade. Yet even with greater supply chain experience under our belts and a willingness to embrace best practices, hospitals still see a widening gap between costs and revenue.
So with all of these improvements, where are the savings? This paper will examine ways to reduce hospital costs through better inventory management, streamlined business processes to reduce labor expenses, and most importantly, drive hard dollar savings by managing supplies more efficiently. Included is a complete list of “Ten Steps to Improve Inventory Management and Reduce Cost.”
Nursing and the Healthcare Supply Chain: At the Intersection of Labor and Supply Expense
Hospitals experience significant challenges related to inventory. With carrying costs high, clinicians and supply chain staff highly-stressed as they work to do more with less, and the critical need to deliver high quality patient care at the lowest cost, removing the barriers to simple and effective inventory management can have immediate impact.
Nursing salaries are the largest part of the staffing expenses, and the need for nursing overtime continues to drive this expense even higher. With labor and supply chain together driving over 80 percent of the cost of running a hospital’s business, this paper examines the intersection of these two areas and examine ideas for simplifying the complex processes that exist today.