Key Strategies to Improve Inventory Management in Your Ambulatory Surgery Center
Effective inventory management is the foundation of operational success for any Ambulatory Surgery Center (ASC). It ensures that essential medical supplies and equipment are always available when needed, and improves control costs. Better tracking of inventory management and forecasting can reduce the amount of expired or obsolete stock, and increase potential savings up to 20-30% of the total inventory costs (McKinsey & Company).
Inventory management is a task where usually more than one person gets involved, and in order to keep accuracy it is important to build a strict process and the use of intuitive digital solutions that can speed up the operations, especially repetitive tasks.
How can ASCs manage their inventory successfully? In this article, we present an in-depth look at key strategies to build a solid and efficient supply chain process.
1. Implement a Robust Inventory Tracking System
An inventory tracking system is the backbone of efficient inventory management. Using software helps ASCs keep track of what’s available, what’s running low, and what needs reordering in real time.
Digital inventory management in healthcare also replaces tedious spreadsheets and decreasing human errors. Common mistakes can include incorrect data, incorrect formulas, and misinterpretation of data. According to a study led by Raymond Panko, an expert in spreadsheet research, the typical error rate is around 1% to 5% per cell. The impact of errors can be substantial, leading incorrect decision-making, operational issues and even financial lose.
Why we recommend it:
Real-time updates on stock levels.
Reduced risk of stockouts or overstocking.
Streamlined tracking process and audits.
2. Utilize ABC Analysis
ABC analysis categorizes inventory items into three groups based on their value and usage frequency:
A Items: High-value or high-usage items that are critical and require close monitoring.
B Items: Moderately valued or moderately used items.
C Items: Low-value or low-usage items that require less frequent monitoring.
By focusing more attention on A items, you can ensure that crucial supplies are always available without overextending resources on less critical items.
Why we recommend it:
Great prioritization of critical items.
Optimizes resource allocation.
Gives better inventory turnover.
3. Switch to a Hybrid Just-in-Time (JIT) Inventory Method
Just-in-Time (JIT) inventory management minimizes storage costs and reduces the risk of expired items. However, it's crucial to maintain a balance and ensure there is sufficient buffer stock to handle emergencies. ASCs can implement a hybrid method by building a backup based on data from previous orders, and number of procedures completed. Studying historical patient flow is essential to determine the level of demand uncertainty and face supply chain disruptions. Additionally, maintaining optimal inventory levels can lead to potential savings of 5-10% by reducing emergency order costs (McKinsey & Company).
Why we recommend it:
Lower storage costs.
Reduced risk of waste.
Improved cash flow.
4. Conduct Regular Audits
Inventory audits and reviews help identify obsolete or slow-moving items that can be phased out, reduced or relocated. It also detects bad storaged supplies or items that don’t meet the required standards.
When ASCs analyze inventory flow regularly, they can optimize their supply chain to match actual usage patterns. It’s by studying these insights where practice managers can find more opportunities to save costs.
Why we recommend it:
Identification of inefficiencies.
Reduction in waste and dead stock.
Improved inventory accuracy.
5. Establish Standardized Ordering Procedures
Creating clear and standardized procedures for ordering supplies can prevent issues related to overstocking or understocking. ASCs must set reorder points for each item based on historical usage data and lead times from suppliers; these tasks can be automated to boost efficiency. Standardization helps in maintaining consistency and reduces the likelihood of errors, to guarantee success the process needs to be documented and available for all team members.
Why we recommend it:
Consistent supply levels
Reduced administrative burden
Improved accuracy in inventory tracking
6. Train and Involve Your Staff
Your staff plays a critical role in inventory management, after all, it is teamwork. Training them on the importance of proper inventory practices, and digital solutions to complete their tasks are vital. ASCs practice managers need to educate their team about how much inventory management can impact their patient flow. Maintaining transparency will encourage staff to report discrepancies or issues promptly and involve them in developing solutions.
Why we recommend it:
Increased staff accountability
Better adherence to inventory protocols
Enhanced overall efficiency
These 6 strategies can help Ambulatory Surgery Centers achieve more efficient and effective inventory management. The results should lead not only to cost savings, but also improved operational efficiency, and better patient care outcomes. Remember, the goal is not just to manage inventory but to optimize it in a way that supports your ASC’s mission and goals effectively.
Effective inventory management is a dynamic process that requires constant attention and adaptation. Committing to continuous improvement and leveraging both technology and human resources is key so ASCs can maintain a well-managed inventory system that meets the needs of patients and staff alike.
At Mika Health, we aim to improve ASCs supply chain by providing solutions to reduce costs and increase profits. Contact us today to learn more about our software and obtain a free demo.
