If this is done many of the inventories warehousing distribution and billing

If this is done many of the inventories warehousing

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of the healthcare industry. If this is done, many of the inventories, warehousing, distribution, and billing problems facing manufacturers go away. One call to a CLSC delivers all the materials needed for existing orders. A CLSC can consolidate deliveries, while improving receiving, restocking, and service to the hospital. Space previously used for inventory becomes flexible space for growth and revenue generation, while visibility across the manufacturing enterprise is greatly improved through a centralised inventory/warehouse/logistics provider. At the other end of the medical supply chain, hospitals also financially benefit from a centralised inventory centre. Supply chain management, inventory, and procurement can account for up to 35% of a hospital’s operating budget, according to Healthcare Purchasing News. Unofficial VMI can account for up to 50% of total inventories, creating distribution, billing, and product lifecycle headaches for both manufacturers and hospitals. Hospital supply chains spend approximately $8 billion each year on inventory management and order management out of an estimated $11.5 billion in total supply chain costs. In this context, even small percentage improvements to supply chain efficiencies quickly add up! Recent studies show that – just in the past 2 years – hospitals that move to a Consigned Inventory Management System can expect to reduce supply costs by up to 3.5% within the first 4 years of operation, which equates to more than 1% of total hospital operating expenses. Accessed from - HealthcareKnowledgeBase6-07Final.pdf.
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