RFID Reduces Hospital Inventory Costs
Posted by Colleen Terry on Wed, Mar 31, 2010 @ 09:46 AM
No matter what decade you're in, reducing costs will never go out of style. And, no matter what your industry, reducing inventory levels can have compounding side affects. So, how do you accomplish one without adversly affecting the other?
While the healthcare industry has the added challenge of reducing costs, while improving patient safety and care, many hospitals have found success by implementing RFID solutions. Using RFID to track inventory and usage levels of individual products -in real-time- has proven to reduce specialty department inventory costs and improve patient safety. Can this be true? Here are 4 real world examples of inventory reductions in hospitals, after implementing RFID for the real-time tracking of critical medical supplies:
- A Midwest hospital identified a 25% reduction in inventory levels by comparing current target inventory levels against proposed levels based on actual product usage.
- A Northeast hospital was able to bring consigned and paid stock down from $400,000 to $100,000 in just a few months.
- A New York hospital has seen an overall inventory reduction of 33%, despite the fact that some SKU's actually increased.
- A Southeast hospital closed the gap of on-hand inventory levels and target inventory levels by almost 100%, by using real-time automated replenishment.
With more and more healthcare providers seeing black when it comes to inventory carrying costs, RFID is earning a prominent place in the hearts of hospital administrators.
Learn more about how RFID can improve the bottom line at your hospital, while improving patient care. Download case study.