Cost of Counting
Small Regional
- $100 per day
- $3,000 per month
- $36,000 annual
Medium Regional
- $2,100 per day
- $63,000 per month
- $756,000 annual
Large Regional
- $5,000 per day
- $150,000 per month
- $1.8M annual
- Must physically observe empty bins and scan for a refill
- Analytics based on low/empty bin count only
- Information confidence is low/empty only INFO
- Forced to use dated KANBAN system
- Issues in nursing: hoarding, lost time, and reduced patient care due to low inventory
- 12-18% of inventory is lost or expired and thrown away
- 25% of clinical staff have used or seen others use expired products
- Often only empty bins are accounted for
Current SCM Solutions
Barcode Scanners
- Nurse pulls materials using scanner
- System updates use only, ordering and provides visibility
Weight-Based
- Overly complex to operate
- Requires frequent recalibrations
- Unreliable
KANBAN
- Uses traditional systems
- Manual refill multiple times per day
Inventory Management Challenges
Resupply
Little time to optimize timing of resupply
Daily Counting
Staff are asked to take inventory of floor supply rooms, frustrating staff at a high expense ($50k-$150k per month)
Central Distribution Ordering
Once daily, hoarding, interdepartmental theft
Daily Orders
Supply chain operators make daily orders to supply floor personnel
Lack of Insight
Cannot predict long-term trends, optimize spending or reduce waste due to manual systems