Inventory Mistakes That Hurts Your Clinic’s Revenue
At Mika, we envision a healthcare landscape where staff can focus on patients while digital solutions streamline medical inventory management by handling repetitive tasks, enhancing productivity, and preventing financial losses. In our journey, we have delved into clinics and engaged with experts nationwide to understand different medical procurement challenges. We realized that most of the time, the same three negative patterns repeat no matter the size of the provider, considerably impacting their finances:
1. Insufficient Inventory Predictability: One of the recurrent challenges clinics face is the need for more data to predict inventory needs accurately. This often results in either shortages during peak seasons or overbuying, leading to unnecessary waste. Striking the right balance is an ongoing challenge, and clinics need modern solutions to enhance predictability and prevent supply chain disruptions.
2. Cost-Centric Approach: While saving costs is crucial, a myopic focus on cutting expenses can have detrimental consequences. Opting for the cheapest option might seem like a cost-saving measure, but it can result in inefficiencies, staff burnout, and compromised patient care. An efficient procurement process saves costs, improves productivity, and fosters a conducive environment for healthcare professionals.
3. Outdated Systems: Many healthcare teams still rely on manual processes, especially the ubiquitous spreadsheet, to manage their inventory. Outdated systems make reviewing historical data and developing effective procurement strategies challenging. Embracing digital solutions is imperative to streamline inventory management, reduce errors, and enhance efficiency.
Understanding these mistakes is crucial to mitigating its impact on clinics. According to different studies the annual cost of wasteful spending in healthcare is close to $935 billions in the USA.
The following categories encompass the significant sources of inventory waste in the American healthcare system:
Expired Medications and Supplies: Pharmaceuticals, medical supplies, and equipment with expiration dates may become obsolete, leading to significant waste if not used in time.
Overstocking: Ordering excess inventory can result in waste if items expire or become obsolete before utilization.
Stockouts: Inadequate inventory management can lead to shortages, disrupting patient care and increasing costs.
Product Recalls: Recalled medical products must be removed from inventory, resulting in waste due to safety or quality concerns.
Damaged or Spoiled Goods: Improper storage, transport, or handling can damage medical supplies, rendering them unusable and contributing to waste.
Overcoming the challenges mentioned will represent an opportunity to reduce medical cost and provide services and medicines to more people. Here are some recommendations to help you overcome mistakes in managing medical inventory:
Conduct Regular Audits:
Perform regular audits of your medical inventory to identify discrepancies between actual stock levels and recorded quantities.
Use barcode scanning or RFID technology to streamline the audit process and reduce manual errors.
Implement a Robust Inventory Management System:
Invest in a comprehensive inventory management system designed for the healthcare industry. Such systems can automate processes, track stock levels, and provide real-time visibility into inventory status. You can check Mika's solution here.
Ensure that your system allows easy integration with other healthcare software and equipment.
Train Your Staff:
Provide training to staff members involved in inventory management. Ensure they understand the importance of accurate record-keeping and the consequences of errors in the medical inventory.
Regularly update training programs to keep staff informed about any changes in inventory management processes.
Set Par Levels:
Establish par levels for each item in your medical inventory. Par levels are the minimum quantities of each item that should be maintained to ensure continuous availability.
Implement automated reorder alerts to notify staff when inventory levels drop below the established par levels. You can check out Mika’s PAR levels solution and book a free demo using this link.
Monitor Expiry Dates:
Regularly check and monitor expiration dates for all medical supplies. You can implement software that alerts staff well before an item's expiration date to facilitate timely disposal or replacement.
Centralized Storage and Organization:
Keep medical supplies organized in a centralized storage area. Implement a transparent labeling system to facilitate easy identification of items.
Ensure that items are stored in accordance with manufacturer guidelines, especially those with specific storage requirements.
Vendor Relationships:
Establish strong relationships with reliable vendors. Communicate your needs clearly and work together to optimize supply chain efficiency.
Regularly review and assess vendor performance, and be open to exploring new suppliers if necessary.
Keep looking for new vendors that can ensure your excellent quality products with reasonable purchasing policies. Mika has recently built a digital solution that helps clinics find more vendors and generate quotes in minutes. You can learn more about this solution here.
Document and Analyze Mistakes:
Document any inventory mistakes or discrepancies that occur. Analyze the root causes of these issues and implement corrective actions to prevent recurrence.
Use historical data to identify patterns and trends, helping you make more informed decisions in the future.
Continuous Improvement:
Embrace a culture of continuous improvement in your inventory management processes. Regularly review and update procedures based on feedback, industry best practices, and technological advancements.
By implementing these strategies and maintaining a proactive approach, healthcare organizations and clinics can minimize mistakes in managing medical inventory and enhance overall operational efficiency.
At Mika, we are committed to offering comprehensive solutions to help clinics overcome these challenges and usher in a new era of efficient and sustainable healthcare. If you resonate with these challenges, we invite you to explore our innovative solution by booking a demo here.
