The Inventory Transformation Process

I understand how overwhelming inventory can seem when it’s running out of control. You know (or think) your costs are too high. You wonder what’s going wrong, wondering what you can do, and feeling completely overwhelmed at where to begin. You run out of items, your counts are always off, and your revenues aren’t where they need to be.

You might be feeling completely overwhelmed, and your time is valuable and you’re already spread so thin. So where does that leave you? That’s where I come in. I’ve helped hospitals across the nation get control back of their inventory, reduce the costs, increase efficiency, and most importantly get them back to their patients.

There are several overarching goals when we work together:

Find waste and areas for improvement

  • Identifying waste in the entire inventory process
  • Identify areas for improvement throughout the process
  • Develop an action plan to analyze, fix and sustain proper inventory management

Fixing the problems

  • Uncover root causes for the key issues and set target inventory levels
  • Select the right tools and methodologies for effective implementation and sustainment
  • Implement improvements to reduce excess inventory

Sustaining the changes

  • Knowledge transfer to the inventory lead and entire staff through education and training on new tools and processes
  • Create a culture of continuous improvement to sustain progress through a strong learning plan

These goals are achieved using a proven process that we work through together.

The Three-Phase System

Phase One

This phase is important for building a foundation of information. After the initial authorization, I will provide a questionnaire that will contain numerous questions about the operation, function, and current health of the inventory system. Then, I will request several different reports from your hospital’s practice management software system. Once that has been received, I conduct a thorough analysis of the entire inventory system. From there, I create a treatment plan for the exact steps that need to be put in motion to optimize profitability and efficiency.

Phase Two

The bulk of the work happens here. It has been proven to be more effective and successful in providing onsite review, training, and support. At your practice, I’ll review the entire operation, meet the staff, and dig deep into the challenges of your specific hospital.

During my visit, I will present the treatment plan, review the analysis of your practice, and discuss the plan of action. In addition, I will fully train the inventory lead and any other necessary staff, demonstrate proper procedures for practice management systems, and conduct any and all training for the team. Most importantly, we’ll get started implementing the changes and start the inventory transformation.

Part of the training will include a workbook that includes over 25 different files to help hospitals maintain organization, policies and procedures, and assist with controlled substance management.

Phase Three

Even though an extensive program has just been concluded, I take great care to provide ongoing support to see the transition through as it takes time to move from a new understanding to now an ingrained habit.

Your hospital will receive unlimited phone and email support for any questions that arise. At the 6 month mark, I will conduct another analysis to ensure things are on the correct path, and provide additional adjustments as required. This phase will be most productive because I have met with the teams individually, and understand their unique challenges.

Final Thoughts

This may seem daunting, however, the cost is minuscule in comparison to the savings. As an example, one success story was a hospital which had an initial cost of goods as a percentage of revenue of over 35%, which translated to over $300,000 per year. The three-phase program conducted provided a reduction of COGS to 15%, at a monthly savings of over $30,000. I am confident that your practice could see similar improvements and profits at a fraction of the cost.

If you’re interested in a completely free, zero-pressure (that’s just not my style!) proposal and consultation for your unique hospital, please fill out this form, and I’ll be in touch right away.

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By |2018-10-23T20:31:54+00:00October 23rd, 2018|Inventory, Management Strategies|0 Comments

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