Optimizing Supply Management at the Point of Use — A Perioperative Experience

The client

With a strong reputation for outstanding patient care, this multi-hospital, integrated delivery system recognized that their Perioperative clinicians and staff spent excessive time and effort managing supplies – time better spent delivering high-quality patient care. Additionally, the system recognized the opportunity to reduce supply costs by improving inventory management, which required improved inventory control processes as well as robust supply analytic data. To maximize the opportunity within the perioperative environment specifically also required reengineering supply chain work processes across 40 system-wide operating rooms.

The challenge

Recognizing these opportunities to reduce supply costs and improve inventory management, the system decided to invest in point-of-use (POU) supply automation as a system-wide integrated strategy. The executive leadership team was eager to ensure proper alignment and integration of this technology with workflow and staff roles, and of course wanted to avoid operational disruption, role confusion, service lapses and related inefficiencies that often accompany technological
integration initiatives.

The approach

Having recently led a highly successful non labor project that delivered $21 million in hospital-wide, including perioperative supply chain savings, Novia already possessed a deep understanding of the client’s supply chain and perioperative services which enabled the consultancy to bring immediate value to the POU project. One of the first tasks was to guide the client through the complex implementation of the new technology, aligning both workflow processes as well as the automated system design with the organization’s strategic imperatives:

  • Safety and quality
  • Patient access
  • Resource stewardship
  • Staff and physician engagement

The approach is discussed in more detail in the full case study.

The results

“With Novia’s help we are on-track to deliver significant financial benefits; total system-level five-year benefit is projected to be $19.7 million, with a net 5-year ROI of $13.6 million”.

As a result of the collaborative, patient-centric approach, the team achieved its goals. Key results, which are discussed in more detail in the full case study, included:

  • On-track to deliver significant financial benefits; total system-level five-year benefit is projected to be $19.7 million, with a net 5-year ROI of $13.6 million
  • “Forward deployment” of Supply Chain Operations staff to clinical areas enhances customer service, improves inventory control and frees up caregivers to provide increased opportunities for patient care service.
  • Key performance metrics have shown demonstrated improvement with the inventory management system installation, including consistently exceeding the system’s fill rate target measure of 97.8%.
  • Increased inter-departmental collaboration through Service Level Agreements between Supply Chain and Perioperative Services.

Download the full case study

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