The end of the year is fast approaching, which means that, pandemic permitting, hospitals across the country will soon see an estimated 20% increase in the number of surgeries they perform. Past experience also suggests that bunion removal, breast lifts, vasectomies, tummy tucks, and carpal tunnel surgeries will be among the most common procedures as consumers rush to use up spending account dollars and have elective procedures completed after they’ve reached their annual deductible.

While the actual numbers may look somewhat different this year, given the impact COVID-19 has had on healthcare demands, the lesson remains the same: by examining existing data from previous years and considering outside factors, hospitals can better prepare for future demand. 

The cost of unscanned inventory

Unfortunately, this kind of demand planning tends to be the exception rather than the rule. Because hospitals have come to expect delivery of supplies in 24 hours or less from their distributors, many have effectively outsourced control of their supply chain to these partners. However, as recent history has proven, this approach leaves hospitals vulnerable to stockouts that can cost them money and put patient and staff safety at risk due to a lack of critical supplies. 

Hospitals may try to protect against inventory shortfalls by overordering, but that comes with a major drawback, because filling shelves with inventory ties up physical space and financial capital that can be better used in other ways. 

For example, Jump Technologies recently worked with its clients to identify millions of dollars worth of unscanned inventory. Seeing how much inventory sits unused has allowed supply chain leaders at these organizations to  see how unscanned inventory translates into billions of dollars in waste each year on unnecessary supply chain spending. 

Why does this happen? Because PAR replenishment and other traditional forms of supply chain management rely on individual memory and opinion to determine order volume and frequency. This leads to inaccurate orders and ineffective demand planning. By contrast, using a solution like JumpStock from Jump Technologies allows hospitals to quickly scan supplies and automatically update systems based on actual usage — all through an easy-to-use, mobile, point-of-use platform. The result is fewer stockouts, no overordering, and the opportunity to spend money where it can have the biggest impact. 

Pinpointing preferences

One area where this kind of demand planning can make the most meaningful difference is with physician preference cards. Preference cards are notoriously difficult to keep up to date, and often include items that are never used. Here again, Jump Technologies, though its Case Companion solution, offers hospitals the data analytics and critical analysis resources to understand what individual surgeons actually use during a given procedure and update preference cards and orders accordingly, saving money, reducing waste, and ensuring that physicians have the right supplies on hand to deliver the care patients need.

Changing times

The COVID-19 pandemic provided harsh supply chain lessons for hospitals. Learning from the experience will mean finding ways to leverage data to better manage inventory and prepare for the ebb and flow of demand, whether that means stocking up for a predictable surge in procedures at the end of the year or having a plan in place to manage critical inventory during a health emergency like COVID-19. Contact Jump Technologies today to learn more about the value of effective demand planning for managing your hospital supply chain.