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SUPPLY CHAIN MANAGED SERVICES: A materials management solution for hospitals

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HOSPITAL SUPPLY CHAIN INEFFICIENCIES ARE COSTLY

Nurse shortages, increased patient waitlists and global product availability are all-too-common problems and supply chain managed services can play a part to help address these challenges. 

Negatively impacting human resources

These issues with product availability are diverting clinicians’ attention from addressing the surgical backlog – in fact, some 10-20% of nurse capacity is spent managing inventory. This time could be spent dedicated to patient care so it makes sense to reallocate resources so nurses are focusing solely on clinical activities and move stock management duties elsewhere.

 

10 to 20%
of nurse capacity is spent managing inventory.

Financially costly

Waste can be over 10% of spend for hospitals that don’t manage stock properly. On top of that, it costs hospitals around 12-15% of annual material spend to run a supply chain.

10 to 20%
of nurse capacity is spent managing inventory.

 

Waste costs hospitals 12-15% of annual material spend.

What Is OUR solution?

With people, process and technology, Medtronic IHS enables hospitals to deploy a modernised materials management operation. 

Medtronic provides on-site staff, back-office support and technology solutions as part of long-term hospital partnerships. Training, technology and analytic capabilities lead to:

  • Disciplined demand and supply planning for surgical materials
  • Stronger product management processes and analysis
  • Better storage and stock layout
  • Consumption tracking 
  • Integration of IT systems

Significant financial savings and time freed up for nurses and clinicians happen within 3-6 months of launching the service. 

 

A proven system: 100+ operations staff, 3.8 million stock movements tracked per year, 121,000 third-party products managed and over 150,000 procedures per year.

Medtronic IHS implements end-to-end supply chain services and uses analytics to ensure optimal stock availability and cost control. The service is vendor-independent (managing inventory across all brands, not just Medtronic).

Supply chain graphic

Medtronic’s proprietary system for inventory analytics ensures optimal supply chain performance.

  • Stock at risk provides visibility on over and understock, prompting users to take corrective action.
  • Financial controls bring insight on cost and usage per procedure and highlight opportunities for spend control and range rationalisation.
  • Supplier performance management shows risks to product availability and supplier reliability.
  • Product range review and rationalisation, through detailed consumption analytics, highlights unused products.
  • Stock reordering strategies enable hospitals to apply the best replenishment level settings and take corrective actions for products at risk of expiry.

Medtronic IHS partners with a leading inventory management software provider to bring automation and standardisation to stock control. It provides simple and fast recording of materials consumption, integrates with RFID hardware and can interface with a hospital’s theatre management and procurement systems (a necessary component for hospitals wanting full integration and rapid reimbursement).

PROVEN IMPACT ACROSS MORE THAN 80 HOSPITALS IN 18 COUNTRIES THROUGHOUT THE EMEA REGION

No other company provides servicing, sourcing and vendor-independent supply of materials with the global reach of Medtronic. 

Large NHS teaching hospital in the UK – Cardiac Catheter Labs

IHS helped the hospital avoid £10.4m cost and ensure high performance operational levels.

University Hospital in Denmark - Neurosurgery Department

IHS reduced materials management running costs by 77% over two years.

Large teaching hospital in the Netherlands - Cardiology Department

The hospital saved an average of €450k per year and freed up 1.5 FTE of nurse time to allow them to focus on patient care instead of handling materials.

Read OUR WHITE PAPER

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Gain more insights on what high-performing hospitals are doing to manage their supply chain.

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