be especially costly when they expire . Proper inventory management , including tracking expiration dates and rotation of stock , is crucial to avoid such losses .
• No bin locations on preference cards : Preference cards are used to streamline surgical procedures by specifying the supplies needed for each case . Including bin locations on preference cards is important for efficient case picking . Without bin locations , new staff may spend extra time searching for supplies , leading to increased case pick time and mis-picks .
Mid-size stand-alone hospital with
19 ORs and 12,300
surgeries per year
It was time for Medline ’ s supply chain experts to take a closer look at everything . And we do mean “ everything .”
Capture data to launch cost-containment measures Taking a look at everything is done through a perioperative walkthrough to gain understanding of the current supply flow from dock to point of use in the operating rooms .
Medline sent an eight-person team for one week to capture the unique device identifier ( UDI ) barcodes on all surgical supplies in six OR cores and sterile processing departments . They used this data to create an item master and identify expired items .
Using the patented scanning solutions of Medline ’ s partner SxanPro , the team :
Who is SxanPro ?
SxanPro is a healthcare supply management technology company with the only patented mobile technology for scanning UDI barcodes . The impact ? Identifying all your inventory allows a system to determine ways to use medical supplies more efficiently , so that hospitals can reduce and reuse what they can to create necessary resiliency and capacity and reduce waste in the supply chain .
Easy to use and relatively inexpensive , SxanPro apps have more than 4 million products in their database and are able to immediately and accurately capture manufacturer information on medical supplies and capital assets , including expiration dates and lot numbers — without the need for an IT or WI-FI connection . For minimal investment , hospitals can make proactive , data-driven decisions about surplus medical supplies and reduce the labor involved .
• Scanned 7,147 items
• Identified 2,507 SKUs
• Identified 145 expired items and 324 expiring in the next 60 days
Lacking documentation , hospital supply chain leaders thought they were wasting approximately $ 100,000 a year . In reality , it
“ Lacking documentation , hospital supply chain leaders thought they were wasting approximately $ 100,000 a year .
In reality , it was closer to $ 500,000 in wasted supplies annually .”
— Kim Haines , Director of Clinical Programs for Perioperative Sales was closer to $ 500,000 in wasted supplies annually , says Haines .
Using optimized PAR levels and LUM supply delivery contains costs and rightsizes inventory After each item was scanned , perioperative supply chain leaders used data analysis to :
• Set up new PAR locations and establish PAR levels . PAR locations are designated points in an organization ’ s inventory management system where inventory levels are carefully monitored , and replenishment orders are automatically triggered when inventory falls below predefined PAR levels . Their primary purpose is to optimize inventory control , improve efficiency , reduce costs and ensure a consistent and reliable supply of essential items .
• Employ new item master dashboard to clearly identify what items are set to expire in 30 , 60 and 90 days , enabling better monitoring of these supplies .
Going forward , the hospital ’ s supply chain leaders will use the data to :
• Create ship-to and sort codes for lowest unit of measure ( LUM ) to the OR supply delivery
• Redesign the central sterile core to right-size inventory and drive efficient case picking with supplies clinically zoned and organized , color coded by specialty and new bin location to update on preference cards .
“ Using lowest unit of measure allows customers to order what they need versus what ’ s available ,” says Haines . “ When you can order supplies only in bulk , you congest your bins and storage areas with too many supplies , putting you at risk for outdates . When you have the option to order in lowest unit of measure , it provides you with better space utilization and lower risk .”
For example , if a customer needs only two items , they still have to buy a case of 30 . Then they have to sit on 28 and remember to use them before reordering . That ’ s spending more money and taking up more space . By monitoring and restocking supplies at the lowest unit of measure , supply chain leaders can ensure they have just enough on hand without overstocking or running out of critical items .
As Haines calls it , “ having a supply chain workflow that provides a pipeline of trust and security .”
Boosting periop supply management starts with a perioperative walkthrough and assessment . ◼
Visit https :// www . medline . com / supply-chain / contact / to gain even greater efficiencies .
22 SUPPLY CHAIN OPTIMIZATION Issue 8 / 2024