Search results

The primary objective of this article is to examine current procurement, inventory control and management practices in modern healthcare, with a particular focus on the procurement and management of surgical supplies in a prominent public, highly specialized healthcare sector.

This study was conducted in three phases. In Phase 1, the study team interacted with various hospital management stakeholders, including the surgical hospital store, examined the current procurement process and identified challenges. Phase 2 focused on selecting items for a detailed study and collected the qualitative and quantitative details of the store department of the healthcare sector chosen. A detailed study analyzed revenue, output/demand, inventory levels, etc. In Phase 3, a decision-making framework is proposed, and inventory control systems are redesigned and demonstrated for the selected items.

It was observed that the demand for many surgical items had increased significantly over the years due to an increase in disposable/disposable items, while inventories fluctuated widely. Maximum inventory levels varied between 50 and 75%. Storage and availability were important issues for the hospital. It is assumed the hospital adopts the proposed inventory control system. In this case, the benefits can be a saving of 62% of the maximum inventory, 20% of the average stock in the system and optimal use of storage space, improving the performance and productivity of the hospital.

This study can help the healthcare sector administration to develop better systems for the procurement and delivery of common surgical items and efficient resource allocation. It can help provide adequate training to store staff. This study can help improve management/procurement policies, ordering and delivery systems, better service levels, and inventory control of items in the hospital business context. This study can serve as a pilot study to further investigate the overall hospital operations.

This study can help the healthcare sector administration develop better systems for procuring and delivering common surgical items and efficient resource allocation. It can help provide adequate training to store staff. This study can help improve management/procurement policies, ordering and delivery systems, better service levels and inventory control of items in the hospital business context. This study can serve as a pilot study to further investigate the overall hospital operations.

This study is an early attempt to develop a decision framework and inventory control system from the perspective of healthcare inventory management. The gaps identified in real hospital scenarios are investigated, and theoretically based-inventory management strategies are applied and proposed.

The cost of providing healthcare is spiralling up in recent times. On the one hand, patients expect the highest quality of service, while on the other hand, the managers of the healthcare services want to minimise the total operating expenses. Hence, healthcare organisations implement lean thinking (LT) to achieve these twin objectives. LT reduces the eight wastes that are prevalent in the healthcare processes and functions. In particular, if the wasteful inventories related to expensive medical supplies are reduced, the resulting cost savings can help in providing affordable and accessible healthcare.

Hence, in this paper, a case study of a hospital is presented where LT is implemented. One of the projects was related to inventory reduction in the store of the catheterisation laboratory (cath lab). A hybrid methodology called multi-unit selective inventory control (MUSIC) that combined these three dimensions (3D), namely, consumption value, criticality and lead time or ease of availability was used to classify the medical supplies into different categories.

Based on the results obtained, various inventory systems and the associated tools and techniques of LT were proposed. For example, a deep dive into the A-class items revealed that some of the medical supplies fell under both vital and scarce categories. Hence, it was recommended that the case hospital should follow the economic order quantity (EOQ) with safety stock approach as these items were to be shipped from other states in India. Subsequently, the focus should be on developing a local supplier and attempts should be made to establish a kanban system with adequate information sharing.

This study demonstrates the step-by-step methodology of MUSIC-3D which would guide the procurement managers to apply the same in their organisation. It also helps them in identifying appropriate elements of LT for inventory reduction before the actual deployment.

None of the papers has utilised the MUSIC-3D methodology as a precursor for inventory reduction, specifically within the domain of LT. Similarly, identifying and proposing different type of inventory systems and various LT practices based on this unique method is a novel attempt.

Managing perishable inventories is a trade‐off of shortages and lost sales against wastage. This paper aims to identify what drives good management of perishables within the supply chain using the example of blood inventory management in hospitals.

Seven case studies with hospital transfusion laboratories in the UK blood supply chain were carried out in order to explore how perishable inventories are managed. The case studies identify drivers for good performance in perishable inventories.

Six recommendations are developed for how managers can improve perishable inventory performance. These are based around simple management procedures implemented by experienced staff. The case studies develop three propositions that recommend how inventory theory should be embedded in practice.

This research demonstrates that managerial changes and training issues have a significant impact on waste reduction and inventory management performance in perishable supply chains. However, as the case studies focus on the blood supply chain, some caution needs to be applied in generalising these findings beyond the specific context studied.

A multi‐disciplinary approach, combining awareness of the importance of the dynamics of the whole supply chain with good skill and experience, leads to new thinking, which enables staff to make better inventory decisions resulting in better performance and reduced wastage. Managerial changes and training are critical for good inventory performance.

Literature suggests that sophisticated and complex inventory models will drive performance; however, in practice a combination of basic well‐grounded inventory theory with simple management procedures carried out by experienced staff leads to better performance.

The purpose of this paper is to develop an understanding of the nature of collaborative arrangements that partners in Australian hospital supply chains use to manage inventories.

A case study involving a supply chain network of ten healthcare organisations (three pharmaceutical manufacturers, two wholesalers/distributors and five public hospitals) was studied. Data included 40 semi‐structured interviews, site visits and examination of documents.

This study highlights the existence of a variety of collaborative arrangements amongst supply chain partners such as the “Ward Box” system (a variant of the vender managed inventory system) between wholesalers/distributors and hospitals. The materials management departments were more willing than their pharmacy counterparts to participate in a variety of partial and complete outsourcing arrangements with wholesalers/distributors and other hospitals. Several contingent factors were identified that influenced development of collaborative arrangements.

This study is limited to the Australian healthcare sector. To improve generalisability, this study could be replicated in other industry sectors and countries.

Application of collaborative arrangements between manufacturers and wholesalers/distributors would improve inventory management practices across the supply chains. Also, learning from materials management departments could be transferable to pharmacy departments.

Several contingent variables for the implementation of collaborative inventory management arrangements between healthcare supply chain partners have been identified. Methodologically, data across three echelons in the supply chains (manufacturers, wholesalers/distributors and hospitals) were collected and analysed.

The purpose of this paper is to develop a generic framework for the assessment of VMI implementation. The framework is used for the analysis of multiple case studies in German hospitals to discuss the feasibility of VMI in the German blood supply chain.

The methodology is twofold. In a first step, the literature is reviewed and a generic theoretical VMI framework is developed. In a second step, the case study methodology is applied to 13 cases to assess the feasibility of VMI in the German blood supply chain.

The paper contributes a generic framework for assessing the implementation of VMI in seven steps. The research proposed that hospitals hesitate to enter a VMI relationship for critical resources such as blood. Hospitals fear losing control over critical resources.

The unit of analysis is hospitals in Germany and the case studies do not target the suppliers in the supply chain. The paper contributes three propositions regarding VMI in the healthcare/blood supply chain.

A generic framework for assessing the applicability and feasibility of VMI is provided which supports managers with the implementation of VMI in a supply chain.

The paper is one of the first papers targeting inventory and supply chain management in the German blood supply chain. It provides a generic framework for the assessment of the feasibility of VMI.

To introduce the applicability of the Ned‐MASTA classification method for medicines within the environment of a hospital pharmacy and the virtual pharmacy inventory system that forms a virtual pharmacy inventory of hospitals within the same geographical region providing the infrastructure for the cooperation of hospital pharmacies in order to improve the efficiency of their operations.

A survey that was conducted in Greek hospitals identified the inefficiencies of their logistics systems that are similar to inefficiencies identified through surveys in hospitals worldwide. It was considered vital and necessary to investigate the solutions that are provided in other industries facing similar problems. The case of spare parts inventory for production machines was found to present similarities with the management of medicine stock within the hospital pharmacy. The approach that was followed for the case of spare parts was modified and included in the system that forms a virtual hospital pharmacy inventory; this made the approach applicable in the hospital environment and further improved the efficiency of the use of hospital pharmacy resources.

The MASTA classification approach was modified to fit in the operation of the hospital pharmacy and a system was constructed to form the virtual pharmacy inventory. The applicability of the system is demonstrated through an application scenario.

The system is in the form of a prototype under evaluation. It has not been applied yet thus results that are based on actual applications are not presented.

It demonstrates the idea of a solution to the inefficiencies of the hospital pharmacy and sets the ground for discussing the proposed solution.

This study introduces a new approach to the problems and inefficiencies of the hospital pharmacy management.

The purpose of this paper is to investigate vendor managed inventory (VMI) for the supply of medicines between distributors and hospitals to identify factors that may affect VMI adoption.

Two contrasting VMI initiatives involving five organizations (three hospitals, one distributor and one manufacturer/supplier) are studied. A case study method with semi-structured interviews is used with triangulation in data collection, site visits and document analysis to enhance reliability and validity. The cases are analyzed and compared with respect to hospital, supplier, product and supply chain integration characteristics.

A successful public sector VMI initiative and an unsuccessful private sector VMI initiative are identified. The public sector supplier focuses on improving service level while the private sector supplier seeks to strengthen relationships with a key customer. Hospital characteristics, including type of hospital, top management perspectives and the hospital’s willingness to share information, are critical in decisions on VMI initiation or termination. Relatively stable demand products are preferred for a VMI approach. Hospitals may perceive risks in VMI adoption for medicines as it involves relinquishing control of critical supplies and may result in “lock-in” with a particular supplier.

The cases have been conducted in one country, which may affect generalization of the findings. Wider empirical evidence from other countries in both developed and less developed regions will be beneficial.

VMI is advocated as being beneficial in many supply contexts. However, it is challenging to implement. The study identifies factors that affect the adoption of VMI for hospital pharmaceuticals and provides guidance on initiating VMI in a hospital context.

The potential for VMI in public health projects to enable greater access to critical medicines is highlighted.

The paper provides supply side and demand side perspectives on VMI adoption in an important sector. It highlights the need for greater understanding of the perceived and actual risks in VMI from the perspective of both the hospital and the supplier and for much clearer advice on which pharmaceutical products are appropriate for VMI control in a hospital context.

This research proposes a decision framework for using non-financial measures to define a replenishment policy for perishable health products. These products are perishable and substitutable by nature and create complexities for managing inventory. Instead of a financial measure, numerous measures should be considered and balanced to meet business objectives and enhance inventory management.

This research applies a multi-methodological approach and develops a framework that integrates discrete event simulation (DES), analytic hierarchy process (AHP) and data envelopment analysis (DEA) techniques to define the most favourable replenishment policy using non-financial measures.

The integration framework performs well as illustrated in the numerical example; outcomes from the framework are comparable to those generated using a traditional, financial measures-based, approach. This research demonstrates that it is feasible to adopt non-financial performance measures to define a replenishment policy and evaluate performance.

The framework, thus, prioritises non-financial measures and addresses issues of lacking information sharing and employee involvement to enhance hospitals' performance while minimising costs. The non-financial measures improve cross-functional communication while supporting simpler transformations from high-level strategies to daily operational targets.

Ineffective management inventory of medical products such as blood and vaccines can create severe repercussions for hospitals, clinics or medical enterprises, such as surgery delays and postponements. Inventory sharing is a form of horizontal collaboration that can provide solutions to key actors of the healthcare supply chain (HSC), yet no prior study reviewed this topic.

This study conducts a systematic literature review of thirty-nine inventory-sharing studies in the context of HSCs published from 2012 until early 2022. The descriptive and thematic analyses include chronological distribution, geographical location, comparison between developed/developing regions, stakeholder and incident analysis.

Thematic analysis classified inventory sharing among five product supply chains (blood, medical supplies, medicines, vaccines and generic medical products). Benefits include shortage reduction, cost minimisation, and wastage mitigation. Barriers include (1) IT infrastructure, (2) social systems, (3) cost and (4) supply chain operations. Perishable inventory policies include Fresher-First (FF), Last-Expire-First-Out (LEFO), First-In-First-Out (FIFO) and First-Expire-First-Out (FEFO). The analysis also showed differences between developed and developing countries. The study identifies several future research opportunities that include (1) product utilisation rate, (2) cost reductions, (3) shortage mitigation and (4) waste reduction.

No prior study has systematically reviewed inventory sharing in HSCs to reveal benefits, barriers, patterns and gaps in the current literature. It makes five propositions and develops a research model to guide future research. The study concludes with theoretical and managerial implications.

The purpose of this paper is to investigate logistics activities in Singapore hospitals. It defines various types of activities handled by a logistics division. Inventory management policy and the use of information and communication technologies (ICT) for logistics purposes are also discussed. The study identifies the nature of strategic alliances in Singapore's health care industry.

This study was conducted by utilizing a framework for data collection, pre‐testing the questionnaire and conducting interviews. Various relevant literature was reviewed to design the questionnaire.

This study finds that logistics division carry out many related activities and some of them also provide engineering services. The hospitals make use of ICT. The hospitals are clustered under various groups to minimize the cost of operation, including the logistics related costs. However, hospitals do not see alliances with suppliers as a strategic option; rather they focus on outsourcing of logistics services. The findings also show that Singapore hospitals have a good stocking policy for both medical and non‐medical items so that changes in patient mix can be easily handled.

Singapore is continuously improving its health care industry and therefore, the findings will help hospitals in other regions to adopt some of the practices, like concentrating on local vendors, outsourcing, clustering, and maximum use of information technology as competitive factors that can improve the service and reduce the cost of operation. The paper suggests motivators and barriers to the use of ICT in logistics in the health care industry.