Inventory control in healthcare facilities is a complex, dynamic process that involves managing a wide variety of items, from everyday medical supplies to high-value and hazardous materials.
Facility managers in healthcare need precise forecasting and real-time visibility to prevent stockouts and overstocking, both of which can have severe consequences such as compromising patient care and tying up valuable resources. They also need to navigate stringent regulatory compliance for handling sensitive materials, all while maintaining continuous operations.
The solution is a modern, unified healthcare inventory management platform that strengthens workflows and supports goals across multiple departments and locations.
Why is inventory control in healthcare so challenging?
Inventory control at healthcare facilities poses several unique challenges. There’s a lot of inventory, many kinds of it, much of it requires tight controls, and the characteristics of the industry make it difficult to predict par levels.
On top of the challenges are the costs of failures. Stockouts can have serious consequences, potentially compromising patient care and safety. At the same time, overstocking ties up valuable storage space and financial resources.
Balancing these extremes requires precise forecasting and real-time inventory visibility, which can be difficult to achieve. And the presence of high-value and hazardous materials, such as pharmaceuticals and biohazard waste, requires stringent regulatory compliance, adding another layer of complexity.
Unlike in most other industries, because healthcare facilities operate around the clock, there’s a need for constant inventory management. Staff must ensure that supplies are available for all shifts, further straining inventory control processes.
What is the growing healthcare trend that’s set to make inventory control across multiple locations even more important?
In recent years, there’s been a growing trend of large companies, including tech giants, retail corporations, and private equity firms, acquiring healthcare providers.
Behind the trend are a combination of interrelated drivers, including market opportunity, vertical integration, and data and analytics.
The healthcare sector is massive and growing, with aging populations and increasing healthcare spending. Companies see an opportunity for significant returns on investment. Other companies aim to integrate different parts of the healthcare value chain to streamline services, improve efficiency, and capture more market share.
There is also a growing awareness that healthcare data is incredibly valuable. By owning providers, companies can access this data to gain insights, improve care, and develop new products and services.
The result of all these drivers is an industry with a growing number of larger companies. With the acquisitions come consolidation, with a single management structure now controlling what were independent facilities. Broadly speaking, by eliminating redundancies across the enterprise — including inventory management — organizations can cut costs. But it only works with the right amount of coordination.
What are the common barriers to healthcare inventory control across multiple locations?
Maintaining accurate inventory records across multiple locations presents several challenges, including:
- Data silos: Each location may have its own system or method for tracking inventory, leading to isolated data that’s difficult to aggregate and analyze.
- Real-time visibility: Achieving real-time visibility into inventory levels across all locations is complex. Delays in updating records can lead to inaccuracies and stock issues.
- Standardization: Ensuring consistent inventory management processes and categories across different sites can be challenging, especially in large or decentralized organizations.
- Scalability: As the number of locations grows, the complexity of maintaining accurate records increases exponentially, requiring robust and scalable systems.
- Communication: Effective communication between locations is essential to ensure that inventory data is up-to-date and that any issues are promptly addressed.
- Regulatory compliance: Different locations may have varying regulatory requirements for inventory management, adding another layer of complexity.
The right inventory control management software helps large organizations meet these challenges through real-time visibility, standardized processes, and strong communication channels based on a single source of truth.
How does a digital platform help with inventory management in healthcare?
A digital inventory control platform can help healthcare facility management overcome barriers to inventory management in many different ways.
Real-time inventory visibility
Challenge: The dynamic nature of healthcare environments creates fluctuating demand for supplies, making real-time inventory visibility crucial.
Solution: A digital inventory control platform provides real-time updates on inventory levels. For example, when a maintenance technician uses supplies, the platform can automatically update the inventory count, ensuring staff always have an accurate view of what’s available, reducing the risk of stockouts and overstocking.
Precise forecasting
Challenge: Balancing inventory to avoid stockouts or overstocking requires precise forecasting.
Solution: The platform can use historical data and in some cases machine learning algorithms to predict future demand. For example, it can analyze past usage patterns to forecast the need for specific supplies during peak periods, such as flu season, where there are more patients coming through. Being proactive helps with better planning and procurement.
Centralized tracking and coordination
Challenge: Multiple stakeholders and decentralized storage locations complicate tracking and coordination.
Solution: A digital platform centralizes inventory data, making it accessible to all relevant stakeholders. For example, a hospital administrator can see inventory levels across different departments and locations in real time. Centralization ensures better coordination and reduces the risk of miscommunication. Once everyone is working from the same source of truth, there are no longer conflicting versions of current levels.
Regulatory compliance
Challenge: Managing high-value and hazardous materials requires stringent regulatory compliance.
Solution: The platform can include features for tracking and managing regulated materials. For example, the facility team can set up the platform to automatically generate reports for regulatory bodies, ensuring compliance with storage and disposal regulations. In some cases, they can also have it send alerts when certain materials are nearing expiration or require special handling.
Continuous inventory management
Challenge: Healthcare facilities operate around the clock, requiring continuous inventory management.
Solution: A digital platform operates all the time, providing continuous monitoring and updates. For instance, the facility team can set it up to send automated alerts to staff when inventory levels fall below a certain threshold, ensuring that supplies are always available for all shifts.
Direct connection to maintenance work orders
Challenge: Ensuring the right parts and materials are available for maintenance tasks is crucial.
Solution: The platform can directly connect maintenance work orders to inventory. For example, when a maintenance technician closes out a work order, the platform removes the associated parts and materials for the counts.
Data-driven decision-making
Challenge: Effective inventory management requires data-driven decision-making.
Solution: Facility and maintenance teams can access detailed analytics and reports on inventory usage, trends, and costs. For instance, they can generate reports on which supplies are used most frequently and where, helping them make informed decisions about par levels, procurement, and budget allocation.
Effective inventory management is essential for ensuring patient safety and operational efficiency in healthcare facilities. And as the healthcare industry continues to consolidate, improved inventory control across multiple locations becomes increasingly necessary. Healthcare organizations should invest in robust inventory management systems to streamline operations and reduce costs, ultimately enhancing the quality of care provided to patients.
By Jonathan Davis
Jonathan writes about asset management, maintenance software, and SaaS solutions in his role as a digital content creator at Eptura. He covers trends across industries, including fleet, manufacturing, healthcare, and hospitality, with a focus on delivering thought leadership with actionable insights. Earlier in his career, he wrote textbooks, edited NPC dialogue for video games, and taught English as a foreign language. He holds a master's degree in journalism.
