Strategic Analysis on Inventory Management

Based on study, inventory is one of the most expensive assets, covering as much as 40% of the total invested capital. However, we can still reduce that cost by maintaining a lean and complete inventory and be vigilant in the performance of an effective control of inventory stocks.

We will provide relevant trainings and orientations to all supply/stock personnel to coach them properly on the said area of operation in the hospital.

All units within theHospital must have a standard inventory system method used in forecasting, planning and replenishment. This can avoid supply stock out and will result to further enhancement of patient care and simultaneously reduce cost.

Rationale

Supply chain management is very important to hospital firms, with inventory typically comprising between ten to forty-five percent of the total assets. Historically, inventory has been looked at as a major cost and source of uncertainty due to the volatility within the commodity market and demand for the value-added product.

Hospital supply chains are complex. The hospital product line consists of high cost and low cost items as well as perishable and durable goods that are consumed in large and small volumes. There are highly critical and non critical items. Hospital supply chains have to be constructed such that they can handle supplies with all combinations of these various traits (i.e. highly critical, low volume, high cost, perishable goods)

The continual improvement project will focus on effective inventory management policies and methods as appropriate in the Hospital and how this methods and policies are aligned with its goals of ensuring supplies availability, minimizing storage space and minimizing inventory value. Specifically, it will oversee the following questions:

1. What is the effective inventory management methods and policies that will be use by the Hospital in the following supplies category:

a. Medical Supplies

b. Medicines/Pharmaceuticals Supplies

c. Cleaning/Housekeeping Supplies

d. Dietary Supplies

e. Maintenance Supplies

f. Electrical Supplies

g. Mechanical and Spare Parts Supplies

h. Office Supplies

i. Linen Supplies

2. What is the effective optimum level of inventory to deliver an excellent customer or patient service at the lowest possible costs?

3. How much to ask for each supplies when orders are placed?

4. When to place the orders?