Hospital Inventory Mismanagement: Why it happens and what’s the solution?
Medical establishments provide services to their patients all throughout the year. There is no specific time when there is an influx or efflux of patients for which hospitals can plan accordingly. Therefore, they have to fill their inventories with the required Stock Keeping Units (SKUs) to consistently and efficiently cater to the needs of the patients.
Hospitals have to deal with this unpredictable demand at all times which can lead to certain pertinent problems.
- As they have to purchase large amounts of SKUs, they end up procuring medical supplies at such large amounts that there is an excess of stock in their inventories.
- Another negative result of an erratic demand for medical devices and medical equipment is that medical establishments can find themselves short of essential supplies especially during crucial medical procedures. A survey conducted by Cardinal Health, one of the largest healthcare services company, revealed that around 40% of doctors have to cancel their surgeries due to the absence of vital supplies.
- Another obvious consequence is the expiry of stock which leads to significant revenue drainage which is not a healthy situation for any facility.
Medical supplies at the moment is the second highest expense, after labor expenses, in a hospital’s Total Cost of Operations (TCOs) comprising 1/3rd of the expenditure. However, the cost of medical supplies might supersede that of labor cost by 2020 as per an article by Definitive Healthcare, a renowned medical data publication. This calls for an effective solution to help hospitals manage their inventories effectively.
Medikabazaar identified this problem and chose to find a suitable solution. After months of persistence, we present Vizi, an Artificial Intelligence and Machine Learning algorithm app which provides accurate stock projections for planned and timely purchase.
The application helps doctors and purchase managers in keeping track of their stock quantity status via color coded safety stock indicators. The color Green indicates that the amount of SKUs is above the recommended safety stock. Amber denotes that the SKUs from the safety stock is being used. Lastly, the Red color indicates a stock-out situation where there are no safety stock left and the hospital needs to purchase immediately.
The app’s machine learning technology will map the required medical products to Medikabazaar’s digital product catalog from where medical establishments can procure them. This also reduces the burden of contacting multiple vendors which is a taxing job.
So, Medikabazaar is no longer only an online medical supplies platform. We have gone above and beyond to help hospitals from the start of their procurement journey (what and how much to procure) to the end (delivering it at their doorstep). Our 360o value services which go beyond mere prices are aimed at enhancing the healthcare industry in the country by making medical care more affordable and accessible.
To know more about Vizi, contact +91 9707232323, or visit the official website!