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Article review on inventory management
Article review on inventory management
Article review on inventory management
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Care Healthcare Supply Chain Management
Supply Chain Management plays a vital role in our hospitals today. With the growing cost of healthcare and new technologies, it is vital for hospitals to run as efficiently as possible without jeopardizing care. To the materials manager and to the financial minds of a hospital the area of supply chain is a tedius task at best, the kind of planning, strategizing and measuring that seldom goes recognized and rewarded. The work involved with inventory control fits tightly within that description.
In many hospitals today, it is easy for inventory control to go astray and become uncontrolable. This is the case with I Care Healthcare System. Too many people with too much access to too much product procurement are controlling
supplies and equipment coming into the facility without any regulation or little oversight. While the blame for over-ordering is frequently pointed at nursing staff, famous for squirreling away unseen, already paid-for stocks of goods, they are not the only offenders. More accurately, when it comes to inventory, it's the system that fails a hospital, not its people, over what is essentially an asset management issue.
Currently I Care Healthcare System uses a mainframe that was develped internally with an outdated materials management system that allows you to generate purchase orders, but is lacking in running reports that track the usage. This is not uncommon in the hospital materials management environment. The process I mainly manual where requisitions are generated from the department, sent to purchasing, a purchase order is then generated and is faxed or called in to the manufacturer or Med/Surg distributor. Although the distributor has the ability to run re...
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...ure that they are honoring their agreement. Second, in the case of pharmacy, it allows the facility to be reimbursed for pharmaceuticals that were not available by the contracted supplier. This is important for the pharmacy, because when they have to look elsewhere for a substitute product that they do not have a contract for, they could spend many times more for that product. Lastly, it is an inexpensive solution to help monitor the supply chain, cut costs and look for opportunities whether they are contract or non-contract.
References
"The Role of Group Purchasing Organizations in the U.S. Health Care System," Muse & Associates, March 2000.
Werner, Curt. "Hospital supply chain earns high marks in face of SARS outbreak" Healthcare Purchasing news, July 2003.
http://www.findarticles.com/p/articles/mi_m0BPC/is_7_27/ai_105642714:
retrieved 10-11-09
“Hospitals today are growing into mighty edifices in brick, stone, glass and marble. Many of them maintain large staffs, they use the best equipment that science can devise, they utilize the most modern methods in devoting themselves to the noblest purpose of man, that of helping’s one’s stricken brother. But they do all this on a business basis, submitting invoices for services rendered.”
The American Red Cross, a non-profit organization is implementing a new industry standard system called BioArch to track and process its blood products. The new infrastructure will improve the quality of its blood products since employees will be able utilize products based on inventory and age. The system also improves the product tracking process currently in place and it promises to improve customer relations since most competitors are already using the BioArch system. Currently, systems regionally are different and therefore inventory is kept separate. This creates challenges in meeting customer demands and it increases manufacturing manual processes.
Supposedly, the national average occupancy rate of hospitals is lower than it should be because of rising costs of hospital care. Factors causing variations in occupancy rates are hospital size, product diversification, and urgent versus non-urgent
Clear Lake Hospital is a not-for-profit hospital in Iowa. It operates 230 beds and provides acute care. The area, which the hospital is located, is a summer destination with vacation homes and fishing activity. The hospital carries more than 10,000 different items of inventory. These items have different price, order lead times and stockout costs. The new hired Chief Financial Officer, Julio Ruiz, believes that the system used for maintaining the inventories results carrying excess inventories. He bases his assumption on the fact that when the hospital faced occupancy rates near to 100 percent, incidents or even possibility of stockout did not occur.
Hino, R. (2013, September 25). Hospital Strategic Plans Must Go Beyond the Status Quo. Retrieved from http://www.hospitalimpact.org/index.php/2013/09/25/p4358
Davidson, Stephen M. Still Broken: Understanding the U.S. Health Care System. Stanford, CA: Stanford Business, 2010. Print.
Stephen Jonas, Raymond G, Karen G, “An Introduction to the US healthcare System” 6th Edition, Page 118, 25 May 2007
...ng stressed. Option 1 may lead to excessive pressure on doctors, and hence poor performance in service delivery. In medical field, it is necessary to allow the doctors to perform accurately on a consistent basis.
Individual hospitals belong to a number of different buying groups and often switch from one group to the next.
Schmidt, R., & Altus, G. (2010). Reshaping the healthcare delivery network. Healthcare Financial Management, 64(1), 100-104.
Healthcare organizations are designed to meet the healthcare needs of individuals and promote a healthy community. The three healthcare organizations that interest me are: The Heart Hospital Baylor of Plano, Texas Health Center for Diagnostics & Surgery Plan, and Parkland Health and Hospital System. Due to evolving healthcare industry, focusing on just patients and physicians is no longer a marketing strategy. According to Mycek (2015), “Marketing teams need to expand their consideration set and focus on the new 5 P’s of Healthcare Marketing” (p. 1). The new 5 P’s of marketing now impact the marketing potential of healthcare organizations by offering changes in sales rep – physician access, purchasing, formulary decision making, and growing patient empowerment. The new 5 P’s of marketing are: Physicians, Patients, Payers, Public, and The Presence of Politics.
The furniture company Somerset needs to retain its customer service record and remedy any of its global supply chain issues before it has an adverse effect on the brand and start losing customers. With a frequent change in the product catalog, keeping an excessive inventory will cut its profit and some of the product may become obsolete even before the furniture hits the retail outlet stores. In order to achieve profit and success, business employee many strategies and the supply chain strategy are one of the operational management techniques that use analytical decision making process to achieve the company goals and provide tools to effectively compete in the market (Taylor and Russell, 2014).
Inventory management is a method through which a business handles tangible resources and materials to ensure availability of resources for use. It is a collection of interdisciplinary processes including a full circle of the demand forecasting, supply chain management, inventory control and reverse logistics. Inventory management is the optimization of inventories of manufactured goods, work in progress, and raw materials. According to Doucette (2001) inventory management can be challenging at times; however, the need for effective inventory management is largely seen more as a necessity than a mere trend when customer satisfaction and service have become a prime reason for a business to stand apart from its competition. For example, Wal-Mart’s inventory management is one of the biggest contributors to the success of the company; effective and efficient inventory management is of critical importance.
Sethi, S, Yan, H, & Zhang, H. (2005) Inventory And Supply Chain Management With Forecast Updates New York, NY : Springer.
Transportation Central equipment stores rather than ward based stores for commonly used items. Overprocessing: Asking patients for the same information several times. Inventory Waiting Lists -. Excess stock in stockrooms.