Keeping track of what inventory to stock in the hospital goes beyond making sure the shelves are full. It is all about making sure that essential equipment and supplies are available at the right time. Everything from surgical tools to critical medication needs efficient inventory management for patients to receive proper care. However, through traditional means, hospitals are still battling with surplus stock, wastage, and issues with supply chains. The answer? A consignment inventory system!
This guide will inspire hospital administrators and professionals who aim to simplify processes and do not wish to fuss over inventory stock. We will look into how consignment systems work, how they can provide more value and how Lillienu is at the forefront of changing the healthcare inventory management system.
The Current and Improving Situation of Inventory Management in Health Care
The day-to-day operation in a hospital is accustomed to high stakes where even a second’s lapse in procurement can prove fatal. Old school methods of managing stock and inventory tend to be highly manual and complex. It is usually executed with spreadsheets and even worse antiquated software, all of which is absolutely inappropriate for the intricate contours of a healthcare framework.
Dr. Matthew Lane, a healthcare logistics professional made a mind boggling statement during a recent webinar that I found interesting.
“Almost 30% stock held by hospitals never gets utilized and falls under the category of unused resources which sums to several billion dollars that are squandered each year.”
Cyclic supply orders that do not match up as well as stocking that is at best irregular very evidently highlights the inefficiency of the traditional system.
The Issues in Traditional Inventory Management Systems
Before proffering any ideas, it is important to consider what weaknesses the hospitals have to go through in regards to conventional inventory tracking.
– Overstocking: Keeping an excess of unused units translates to greater expenses and wastage.
– Understocking: On the flip side, lack of essential stocks can hamper operations, which hospitals certainly do not have the luxury of.
– Expired stock: Used but unsold perishable items like medicine and sterile surgical equipment occupy space.
– Manual mistakes: Manual stock taking leads to various complications as well as a spike in operational expenses.
For the majority of hospitals, it has become virtually impossible to juggle numerous variables and not suffer from a terrifying night mare.
But what if there was a system capable to completely eradicate these issues?
What is a Consignment Inventory System?
A consignment inventory system is a set up between hospitals and suppliers where the suppliers have the products until they are used in the hospital. This means that hospitals only pay for the items they use and the suppliers retain ownership of their products.”
Here’s how it works:
Step 1: Supplies Delivered to the Hospital: Vendors stock hospital inventory with the required materials.
Step 2: Usage Monitored: Hospitals keep track of what items are utilized through digital tracking systems.
Step 3: Billing Occurs: The hospitals only pay for the tools they used while the rest is returned.
Step 4: Stock Replenished as Needed: Vendors restock items as use is monitored.
It’s a win-win model where both hospitals and suppliers share accountability while minimizing waste and inefficiencies.
Does this sound like something your hospital needs? Take a look at the benefits below:
1. My Cash Flow Problems Are Gone
A consignment model prevents the strain of budgetary issues since money is only spent on what the hospital has used. The consignment model also aids in improving cash flow.
2. Reducing Overstock and Missing items.
Hospitals no longer need to worry as much about purchasing items that will go unused because they depend on the supplier’s stock. With this, purchasing high-cost medical devices or specialty drugs is no longer a hassle.
3. Supplied Chain Coordination
Both the vendor and the hospital can work seamlessly together due to tracking in real time. With automated reordering, hospitals can ensure that they have the right kind of equipment ready at all times.
4. Improved Patient Attention
Less operational issues allow staff to concentrate more on patient care. Nurses and administrators devote less time managing the stock and more time managing healthcare outcomes.
5. Improved Vendor Relations
The partnership grows stronger due to increased visibility and accountability between hospitals and vendors. This fosters collaboration over a long period of time.
“We minimized stock inefficiencies by 40% during our first year of adopting a consignment system. It affected both our finances and quality of care the patients received immediately.”
—Christine Alverez, Director Of Medical Operations, BrightPath Health Network
Case Studies: Hospitals Using Consignment Systems and Doing Well
St. Joseph’s Medical Center
Through the use of Lillienu’s Consignment Inventory System, automatic supply tracking was implemented at St. Joseph’s. They celebrated expansion and reported these results within months:
A 32% reduction in expired product waste
A 25% reduction of expenses on inventory maintenance
40% improved staff productivity in material management
Riverbank General Hospital
Riverbank faced an issue with critical supply stockouts during peak flu season. With Lillienu’s AI tools, automatic inventory replenishment was set at every department, which allowed them to stay ready 24 hours for any situation.
The Lillienu Approach to Healthcare Innovation
Lillienu is not simply a platform, but rather a holistic approach to smarter hospital inventory management. Here’s how they are changing the industry for the better:
AI-Powered Insights: Forget all other tools that are used to monitor stock levels and gaps in inventory. Patterns of usage will be predicted and inventory gaps will be efficiently filled.
User-Friendly Dashboard: Everything is condensed into one simple system allowing analysis from stock levels to payments.
Customizable Solutions: Modify the system based on requirements of your particular hospital.
Service Beyond Software: In addition to the product, Lillienu provides training, consulting and support services for better integration.
Want to know more? For more in-depth understanding, look into a book on consignment inventory system for hospitals.
How to set up a Consignment Inventory System
Do you want to change how your hospital handles its inventory? In order to set up a consignment system, please follow the steps given below:
Establish Requirements: Assess which items and sections will make the most impact with consignment.
Select Appropriate Vendors: Work with specific companies that have knowledge in medical supply consignment.
Utilize The Right Solution: Apply digital platforms such as Lillienu to manage tracking and usage as well as reordering with ease.
Educate Your Staff: Make the employees accustomed to the new system and how it improves overall office productivity as well as patient services.
Analyze The Data: Constantly monitor the information to discover new strategies that will further improve or enhance cost saving.
The evolution of managing stock in hospitals begins with imagining a futuristic scenario.
Costly inventory managing systems ought to stop since they are no longer needed. Considerable progress when it comes to healthcare technology has been made for the possibility of clinical-level Custodial Systems. Termed as a smarter and more appropriate choice, hospitals have the ability to deploy this option now more than ever.
Lillienu’s Consignment Inventory System has already gained the trust of healthcare providers globally and your hospital can be next. Read a catching resource on this topic to understand how custodial inventory systems can be beneficial to our efficiency, cost, and more importantly patient care.
“No practitioner needs to pause and worry about running out of stock at low resources. Carefully managed systems will only allow a person to focus on patient care.”
