If you are honest with yourself, you know that your price and standardization savings are slowly disappearing. Yet, your healthcare organization still needs to save millions annually just to keep pace with inflation. Of note, the inflation rate was 6.8% in December 2021. With this said, I’m sure you realize that your hospital, system, or IDN’s senior management is looking to the supply chain for even more savings to help them this fiscal year. That’s why supply utilization management is mission critical. To this end, here are four ways supply utilization analytics can make your annual savings quadruple:
4 Ways Supply Utilization Analytics Can Make Your Savings Quadruple
1. Identify Unfavorable Trends. If you identify that a commodity’s volume is doubling in a quarter, it’s possibly heading in the wrong direction. This requires a quick intervention.
2. Locate Damaging Patterns. If you locate a repeated pattern or sequence, such as twice as many IV sets being utilized per patient day than is the hospital’s policy, this should be a cause for concern. And could be damaging to your bottom line.
3. Detect Worrisome Anomalies. If you detect something that deviates from the norm, such as, more patient admission kits being purchased annually than a hospital has admitted patients, this need to be justified.
4. Uncover Unexpected Variations. If you uncover a change in a product, service, or technology’s frequency of purchase, change in ordering patterns, or spikes in volumes, this could indicate a change in your customer’s purchasing practices.
Fill Your Glass with Supply Utilization Management
We know that everyone in supply chain management is squeezing the lemon hard when it comes to price, but you need to admit that the lemonade is running dry. What better way to fill your glass again than with supply utilization management. You owe it to yourself and your healthcare organization to consider implementing this supply expense optimization technique in 2022. This could make your supply expense savings quadruple in 2022! Isn’t that what your senior management is looking for?
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