How Much Does “Just-in-Time” Inventory Cost Your Hospital?
Just-in-time inventory strategies have worked well to control costs in a normal supply chain environment. However, in today’s volatile and uncertain global supply chain, buying just-in-time puts hospitals at risk of running out of critical products when orders are unexpectedly delayed or products become unavailable. How can you avoid running out of products needed for patient care?
Adjust inventory levels from just-in-time to “just-in-case.” Identify the most mission-critical products (both equipment and supplies) and increase on-hand inventory so when supply chain breakdowns occur, you are prepared. This may require getting approval for short term budget increases, but you will likely save money in the long run by avoiding inflated spot market prices and loss of revenue if procedures need to be cancelled.
Just-in-time inventory management can be a great strategy when supply chains operate normally. For hospitals today, however, having what they need is far more important – and valuable – than minimizing inventory levels. Adopting a “just-in-case” approach can help you stay ahead of the market and set your hospital up for success. You’ll have peace of mind from knowing critical products will be available when your patients and staff need them.
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