Adjustment of Inventory Composition and Purchase Orders
One key sign of a mismanaged clinical inventory is the over-stocking of products. This surplus typically arises from ineffective inventory management and defensive ordering practices in combination with the lack of the right technology needed to do the task. Common problems include needless product variety, exaggerated quantities by SKU, an inventory composition that is misaligned with physicians’ needs, inadequate par levels, and reordering based on guesswork rather than data.
VUEMED helps hospital departments identify and then solve this problem of bloated inventories – where excess and unnecessary products are purchased thereby draining departmental budgets.
First, our team takes an electronic snapshot of the customer’s actual inventory and then analyzes its composition against benchmarked inventories at other similar departments or hospitals. We also collect evidence about purchase misalignment or excess purchasing by monitoring electronically all received items as they are added to the overall stock and collecting the actual products usage at the point of care during the same test period.
Second, by comparing departments’ buying patterns with their actual utilization of products, VUEMED is able to find the discrepancies that lead to a superfluous inventory and a stock that fails to match the needs of physicians. And by reviewing the composition of the clinical inventory, VUEMED uncovers redundant items purchased from multiple vendors, thereby providing departments with ways to consolidate SKUs, streamline overall stock, and negotiate the best prices possible with vendors.
Finally, VUEMED analyzes consignment programs and terms in light of a department’s overall inventory and its transactions in order to evaluate if such consignment agreements are providing adequate value to the department. These agreements are attractive to hospitals because they can provide temporary relief to budget constraints, but they can also clutter a department’s inventory with products rarely used that take up premium space and strain departments’ resources needed to manage and reconcile them.