Supply Chain Bottlenecks

Cost of Counting

Small Regional

Small Regional

  • $100 per day
  • $3,000 per month
  • $36,000 annual
Medium Regional

Medium Regional

  • $2,100 per day
  • $63,000 per month
  • $756,000 annual
Large Regional

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


  • Overly complex to operate
  • Requires frequent recalibrations
  • Unreliable


  • Uses traditional systems
  • Manual refill multiple times per day

Inventory Management Challenges


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