In the past, so-called “just-in-time inventory” (JIT) strategies – ordering materials/components as needed and counting on them to arrive on time – have worked well. In normal supply chain environments, many professionals have relied on this approach to control costs and reduce waste. But in case you haven’t noticed, we’re not in a normal environment. In today’s volatile global supply chain, buying JIT 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 your inventory approach from “just-in-time” to “just-in-case.” Identify your hospital’s most mission-critical products (both equipment and supplies) and increase the on-hand inventory beyond what you absolutely need. This surplus storage helps you mitigate the effects of the sudden demand spikes, inflated spot market prices, and unexpected order delays/cancellations that have become unfortunately commonplace in today’s market. This may require getting approval for short term budget increases, but you will likely save money in the long run. Besides, it’s a lot easier to explain to your boss why you purchased some that went supplies go unused than it is to explain to a department head why you don’t have any supplies at all.
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. And, if you’re an EVMS subscriber, don’t forget to submit an Equipment Locator or Supply Locator standard report to find the inventory you need at the best prices available. Adopting a just-in-case approach can help you stay ahead of the market and set your hospital up for success. Better still, you’ll have peace of mind from knowing critical products will be available when your patients and staff need them.