CASE STUDY



Hospital_from_Texas

Hospital from Texas reduces its OR inventory and gains real-time reporting tools

 

The CHALLENGE

With a long tradition of providing quality care, this 500-bed tertiary care teaching hospital admits over 14,000 patients and treats 245,000 outpatients every year. The hospital’s OR was seeking to resolve a number of inventory management issues:

  • Manual and fragmented supply chain processes requiring the involvement of multiple employees and leading to errors and lost time
  • High inventory levels and value
  • Absence of automated reporting tools to allow management sufficient oversight and control of inventory
  • Multiple and dispersed storage locations, resulting in inefficient staff movement
  • Numerous work disruptions by material management staff filling urgent requisition orders.

The OBJECTIVE

Metric

Target

Reduce inventory value by:

25%

Reduce supply wastage by:

3%

Reduce time staff spends on replenishment activities by:

20%

Increase storage capacity by:

20%

 

One final criterion, a crucial one for the hospital, stipulated that the Logi-D system had to provide real-time statistics and tools to help supply chain managers gain greater control and oversight of the hospital’s inventory levels.


 

Supplies were not only stored in the main OR supply room; we stacked them in what we call the "West Wing" and even in some of our offices. We lost valuable time locating needed supplies.

-Director, Surgical Services, OR

 

The SOLUTION

Before

 

The hospital opted to implement 2BIN-iD, the patented RFID-enabled two-bin replenishment solution, to streamline inventory management processes, reduce inventory levels, and provide real-time reporting.

The Logi-D 2BIN-iD solution is unique in that it requires no counting or data entry in the user department and only limited involvement from users. It facilitates inventory turnover and control of inventory levels, and it helps prevent the expiration of products.

 

Click here for more information about HOW IT WORKS

2BIN-iD

 

 

Before

Inefficient fixed shelving impeded visual and physical access to supplies and hampered stock control, thus wasting valuable time and space and increasing the risk of products expiring.

Before

After

The vertical high-density storage system, equipped with drawers that can easily be pulled out to access their contents, provides an organized system, making it easy to locate supplies. It also maximizes the capacity of the storage footprint.

Placing the RFID tag on the Logi-D RFID board located in the storage area requires only a few seconds per user per shift and feeds the demand chain based on accurate, real-time consumption.

after

“In less than one month, the 2BIN-iD inventory management system well exceeded our expectations for each of the specific metrics we had established.”

-Chief Financial Officer

The RESULTS

 

40%

reduction in clinical time spent on replenishment activities

With the 2BIN-iD solution, material management personnel spend less time on replenishment activities. The hospital was seeking a 20% time reduction. Once again, the Logi-D solution surpassed this target, and the hospital now enjoys a 40% time reduction. This translates into more than 17 hours per week, and the time gained is being put to better use.

According to the Supply Chain Director:

Rush orders occurred an average of seven times a week for the OR alone and drained material management personnel time.

With the 2BIN-iD solution, demand capture is now automated through the use of RFID technology, and the status of inventory and demand is available in real time.

This has virtually eliminated disruptive stockouts and urgent orders and has reduced the number of trips material management personnel make to the OR. As an additional benefit, replenishment schedules have now been arranged so as to avoid disrupting clinical activities.

 

43%

increase in storage capacity

The 2BIN-iD solution features ISO-iD vertical high-density storage modules. As a result, the enhanced inventory environment easily adapts to changing conditions and improves ergonomics. The hospital’s objective was to reduce the storage footprint by at least 20%. In fact, the lower inventory levels and effective storage solution decreased the footprint by a full 43%. In addition, supplies need no longer be stored in distant locations. With a well-organized inventory, fixed supply locations, and a visual location system aligned with workflows and clinical procedures, OR nursing personnel spend less time searching for and collecting supplies.

storageefficiency

Click here for more information on ISO-iD storage equipment:

ISO-iD

 

 

 

42%

reduction in on-hand inventory value

As part of the Logi-D implementation process, supply consumption was compiled, analyzed, and optimized par levels were established. This has resulted in a massive reduction in inventory value of 42%, greatly surpassing the targeted 25%, due in part to the elimination of excess inventory. 2BIN-iD allows for the precise and dynamic management of stock levels. Because cumbersome and error-prone manual counting has been replaced with an automated and highly accurate demand chain, just-in-time inventory management is achieved. With replenishments based on actual consumption, disruptive stockouts and costly urgent orders have been almost completely eliminated as have hoarding and overstocking.

 

63%

decrease in supply wastage

Like many hospitals, there were issues with what is called shrinkage, which designates the loss of inventory and therefore of money. Shrinkage is usually caused by expired products; poor knowledge of inventory levels; replacement of products with new ones; products no longer used following the departure of surgeons; stolen items; and items discarded due to packaging damaged as the result of poor storage conditions.

Recently published studies pertaining to hospital inventory management indicate that without effective inventory control, shrinkage can account for 8% of the total distributed volume of supplies. The leading practices and automation technologies applied resulted in improved inventory control and data reliability. These, along with the built-in stock rotation features, brought shrinkage at the hospital down to a minimal 3%, representing a 63% decrease in wasted stock

inventoryreduction

Resourceful reporting tools

enable fact-driven optimization and real-time feedback

Generating dashboard data for fully customizable business analytics reports, 2BIN-iD provides evidence-based optimization tools and real-time feedback to drive cost reductions on an ongoing basis, including reports easily extracted in Excel spreadsheets for analysis and sharing.

All of our inventory management processes used to be manual. In order to prevent products from expiring, our staff would regularlyread the expiry dates on the supplies’ labels and list soon-to-expire products on a sheet we pinned to the storage unit. Not only was this system time-consuming, it also carried the risk of error. Today, our system has a built-in stock rotation feature, which greatly reduces the risk of products expiring and going to waste."

-Stores & Distribution Manager

 

“The groundwork and training conducted by Logi-D enabled us to implement the solution smoothly and in remarkably little time. In less than one month, the solution had exceeded our expectations for each of the specific metrics we established.

The Logi-D solution has impressed our clinical and supply staff and has obtained buy-in from both groups, and the project is already tracking for a fast ROI.”

-Chief Financial Officer

 

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