SOURCING & LOGISTICS


Striving for accuracy “One of the biggest challenges for a storeroom/warehouse is maintaining an accurate inventory value for all of their stocked products. Without an accurate storeroom/warehouse inventory, there are many operational challenges that occur, such as: Per- ceived stock-outs/killed orders, lack of inventory replenishment automation, incorrect financials as a result of inventory variance, and additional labor to reconcile daily inventory requests. “At a minimum, weekly cycle counting of the highest activity prod-


ucts is a small investment in keeping the overall operation running more effectively and efficiently. Additionally, create a dashboard of your storeroom/warehouse inventory with key metrics, such as order fill rate by product, inventory turns by product, product lead time by product and stock-outs by product to name a few. Tracking inventory metrics will enable a storeroom/warehouse manager to proactively assess their performance and address issues before they result in a service delivery failure. “Lastly, storeroom/warehouse inventory slotting is a critical function to achieve higher picking and replenishment efficiency. Too often, the fast movers are stocked in the same aisle, which may create congestion for supply technicians to execute their duties. As a result, picking and replenishment efficiency is impacted and ultimately it will require more labor to process the daily inven- tory requests.”


Tom Redding, Senior Managing Director, Healthcare Services, St. Onge Co.


Go Lean for green – and gold “First and foremost, it is essential to have a system that takes into account all those good Lean principles. Deep dive into process by streamlining inventory control, cycle counts, stocking policy, expiration and recall maintenance. To allow for more efficient and quicker order fulfillment, make sure to maintain the ‘gold-zone’ in picking areas with the use of technology sources. “Your data is a powerful ally in strategic decision-making. Rather


than relying on intuition, basing decisions on empirical data provides an objective and accurate reference point. This is becoming more and more important as we integrate automated processes that are more attuned to the trends and patterns that may otherwise be overlooked. “Finally, your most valuable vendors are also your partners. Building reliable vendor relationships with your technology, distrib- utor and manufacturer counterparts provides a solid foundation for mutual wins.”


Cory Turner, CMRP, Senior Director, Healthcare Strategy, Tecsys Inc.


Enabling predictability, efficient workflow “It’s essential for today’s hospitals and supporting healthcare organizations to safeguard data relating to patient supplies. With AI, such data enables predictability as well as the capability to forecast critical patient interventions and unprecedented changes in medical requirements. “Robotic Process Automation and cloud-based software are


still other technologies healthcare organizations may deploy for improving workflow and increasing efficiencies. Robotic auto- mation helps staff retrieve supplies more quickly and accurately. Moreover, cloud-based software allows for efficient data collection and retrieval. Such software is also essential considering the need to maintain and access medical data across extended timeframes as supply usage affects medical outcomes. Toshiba’s innovative duplex liner-less printer, which combines two separate labels –


including shipping and packing lists – into a single, two-sided label is yet another technology benefitting healthcare logistics professionals while helping their respective organizations operate more sustainably.”


Jessica Bernardo, Senior Product Marketing Manager, Label Print Solutions, Toshiba


Plan operational readiness first “In the face of ongoing labor shortages and the need for cost efficiencies, warehouse managers and supply chain leaders undoubtedly are weighing the benefits of investing in warehouse automation solutions and artificial intelligence. The benefits are attractive: Dramatically improved productivity, reduction in oper- ational costs, reduced (or eliminated) safety risks, space optimiza- tion, and enhanced customer satisfaction. When done well, these improvements – and the efficiencies gained from them - lead to enhanced profitability. “While enticing, pause and consideration should be given before


diving into such an endeavor. We have seen many failed automation projects – not due to a lack of capital investment or understanding of how it should work – but because of a lack of proper pre-planning and data analysis. And in some instances, automation may not be the right answer or the right next step. A facility may not have the right size, budget or resources or – in our opinion, the most important consideration – appropriate operational readiness. It is critical to focus first and foremost on the current processes in place. And, if automation is appropriate, it should support these optimal processes and drive engineering and supply chain best practices. “Perform Value Stream Analysis. You do not want to automate


a broken system. Have a comprehensive understanding of your processes and the interdependencies of various work areas (i.e., how does a change in picking product affect packaging and/or outbound delivery?). Map out current state of the flow of goods in and out of your space, identify bottlenecks and inefficiencies within the chain, list all available resources (human, tangible, and intangible) and determine if they are being utilized to their fullest potential, outline future state with goals and objectives. “For any design, plan for future growth. Is the system flexible, mobile, expandable? Can the footprint be quickly redesigned or built vertically versus horizontally? Being able to quickly make changes ensures you maintain speed and accuracy in the future. “Highly variable operations are typically not suitable for fully


integrated automation. Implement advanced demand planning strategies within various areas of your health system. Are there predictive algorithms found within historical data that are based on seasonality or within specific treatment areas? Understanding this information is a good exercise before implementing strategies. “Consider partial implementation strategies versus fully auto-


mated systems. We typically see partial implementation within cells at ‘end of line’ (i.e., shrink-wrapping and palletizing). Be sure your pre-planning identifies all potential bottlenecks from a future state design. For instance, we have witnessed companies increase conveyor belt speed to drive more thruput and then fail miserably when the packing cell employees could not handle the increased volume. Not only did it ‘break the system’ but it drove worker frustration and hurt morale. “There is arguably nothing more important than employee buy-in.


Even the most sophisticated system lacks value if your team mem- bers don’t understand it. Incorporate visual management and craft training programs that focus on AI and technology, drive innovation and educates employees on how to utilize the tools around them.”


Jennifer Nageotte, Partner, Diamond Storage Solutions hpnonline.com • HEALTHCARE PURCHASING NEWS • February 2023 13


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