After two-plus years of supply chain disruptions caused by a once-in-a-generation global pandemic, it seems as though being able to plan for the expected has become a core job competency everyone – especially in the medical industry. It seems like every news story is about a new product shortage or dreary market forecast for the coming year, which means that supply chain professionals are having to frequently adjust their approach to keep up with the ever-shifting market. But amidst the chaos, there is good news: even with our global “normal” being anything but, there are some concrete steps that you can take to reduce the strain on your hospital. Here’s a great T-I-P for how to plan ahead:
- Tally. Take stock of your existing inventory now (and often). The more you can understand your current supply situation, the less you’ll be surprised by an unexpected shortage.
- Increase. Place orders in higher volumes in order to hedge against allocations and disruptions. You might be left with a surplus, but planning for just-in-case supplies is less stressful than depending on just-in-time supplies.
- Pester. Communicate frequently with suppliers, and make sure to push for straight answers when things aren’t clear. Staying in constant contact with your reps makes it far more likely that you get information quickly if anything changes – rather than just passively hoping that the supplier will inform you of it.
Last week, a community hospital knew that it wasn’t getting all the surgical products it needed due to backorders and allocations. After cancelling several surgeries, they began taking a daily inventory of the most critical operating room products – making sure that they knew exactly what they had and what they risked running out of. The supply chain team used that inventory data to increase order quantities and adjust for allocations, and they started contacting their supplier reps at least twice weekly for an update on open orders. After two months, the hospital had successfully reduced their out-of-stock products by 64%, all with fewer stressful moments and cancelled procedures.