CASE STUDY


Hospital makes substantial productivity gains and reduces inventory levels with two-bin RFID-enabled replenishment system

 

The CHU de Québec is the result of a July 2012 merger between the Centre hospitalier universitaire de Québec (CHUQ) and the CHA. The hospital center offers general, specialized and ultra-specialized care. Closely affiliated with the University of Laval, its multiple missions include patient care, teaching, research, and the evaluation of new healthcare technologies and intervention methodologies.

Seeking to improve its operational performance, The CHU de Québec implemented 2BIN-iD in two of its hospitals, Hôpital de l’Enfant-Jésus and Hôpital du Saint-Sacrement. The patented RFID-enabled two-bin replenishment system developed by Logi-D was implemented across a selection of its general and clinical specialty units. Implementation of this technology has greatly improved overall supply chain efficiency in these areas, allowing for time savings for both clinical and material management staff by eliminating materials-related tasks, a reduction of its inventory levels, and a minimization of expired products.

chuqcasestudy

The SITUATION

  • Labor-intensive demand capture rounds
  • Material management-related tasks interfering with clinical work
  • High inventory levels; slow turns
  • Insufficient storage capacity resulting in poorly organized inventory environment

The OBJECTIVES

  • Reduce manual processes and resources required to assess demand at the point-of-use
  • Unburden clinical staff with material-related activities
  • Eliminate dissonance between materials management processes and clinical processes
  • Lower inventory carrying costs by reducing inventory levels
  • Organize supply areas for sustainably improved ergonomics

The SOLUTION

The 2BIN-iD solution optimizes and automates supply chain processes, allowing for:

  • transfer of supply chain activities from clinical personnel to material management while reducing the overall time spent on supply issues
  • replenishment closer to the point of use to make it more efficient
  • a reduction of nursing staff movements and the time spent searching for and retrieving supplies in storage areas
  • reorientation of resources previously assigned to replenishment tasks (mainly staff on nursing units) towards their primary mission of patient care.

By streamlining workflows and eliminating non-value-added activities, automation substantially frees up time that can be put to better use. The benefits: increased service levels at a lower cost.

Click here for more information about HOW IT WORKS

2BIN-iD

 

 

 

“Revising our processes to incorporate new technology and make the most of available resources in order to enhance the institution’s performance is one of the key objectives of our hospital centers. The Logi-D RFID-enabled two bin replenishment system generates gains through improved logistics processes, which, among others, relieve nursing staff of supply chain duties, allowing them to focus on the hospital’s primary mission: patient care.”

-Pierre-André Tremblay, Technical Services Director at the CHU de Québec

 

 

beforeafter

 

 

“We have seen many advantages by adding this practice to our supply chain. Notably, the Logi-D RFID-enabled two-bin replenishment system allows us to recuperate an enormous amount of storage space and facilitates the management of supplies and inventory. In addition, it is possible to generate productivity gains, and above all, the system allows nursing personnel to spend more time with patients.

-Pierre-André Tremblay, Technical Services Director at the CHU de Québec

 

 

The RESULTS

Post-implementation measurements allow for remarkable gains relating to productivity, supply costs and storage space.

 

Supply-related gains

Able to generate more than $2 million in
inventory reduction

With accurate demand data now instantly captured through RFID technology, staff need no longer maintain just-in-case inventory out of fear of supply shortages. This positively impacts inventory value and storage capacity and has dramatically reduced inventory wastage.

RFID tech

 

Up to 50% decrease in stock wastage costs

Product shrinkage or wastage is usually caused by expired, damaged or obsolete products. Recent studies reveal that wastage can represent up to 8% of the total distributed volume of supplies, primarily due to excess inventory, slow turns and inferior top-up put-away practices.

Because 2BIN-iD facilitates just-in-time inventory management, hospitals need only carry optimal levels of inventory, while the built-in stock rotation feature further reduces the risk of products going to waste. It is estimated that the new system has the capability to reduce product wastage by up to 95%.

 

Space gains

An average of 50% reduction in storage footprint

Although space savings per se were not compiled, the gains generated by the vertical high-density modular storage equipment quickly became evident, as it optimized the storage capacity and improved the visibility of supplies. The storage system that accompanies 2BIN-iD improves ergonomics, easily adapts to changing conditions, and generally reduces the storage footprint by an average of 50% as compared to a conventional shelving system.

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

ISO-iD

 

Productivity gains

Clinical staff

The implementation of 2BIN-iD accounts for up to an 80% reduction in the time clinical staff spend on material-related tasks such as searching for, ordering and retrieving supplies. A number of key changes explain this extraordinary outcome, including the transfer of logistics activities to material management staff, a better organized inventory environment; and a drastic reduction in stockouts.

Fixed supply locations and a visual location system aligned with workflows and treatments as well as the decentralization of inventory closer to the point of use have freed up clinical staff and enabled them to devote more time to their core activities.

 

Materials management staff

The 2BIN-iD solution is able to increase the level of service offered by material management staff, despite the additional replenishment tasks transferred to them, as all clinical areas are now serviced by material management compared to just half of these areas prior to the transformation. And because time-consuming and error-prone inventory demand capture rounds have been completely eliminated, material management can now focus on replenishing departments efficiently and accurately, based on real-time consumption data.


Beyond the benefits described above, 2BIN-iD also provides evidence-based optimization tools, real-time reporting and statistical information, which supports insightful decision-making to help drive cost reductions and efficiencies on an ongoing basis.


Read another case study: