Dollars may be hiding on your shelves. You can find them by taking control of your inventory and beginning to actively manage incoming supplies and product consumption.
This is the land of hard dollar savings – and you’ll capture them when you build visibility to supplies throughout your organization. In turn, you’ll also improve planning and forecasting, reduce over-ordering (and the resulting overspending), reduce waste and expiring product, and improve cash flow.
Why use best practices?
Knowing what’s on your shelves helps minimize stock-outs, reduce last minute procedure cancellations, eliminate rush orders and optimize inventory levels. Applying best practices in perpetual inventory tracking helps achieve savings by reducing overspending and decreasing inventory sitting on shelves. Ultimately, right sizing your on-hand inventory improves cash on hand.
So let’s get started!
1. Update par levels based on actual data
• Make sure you have good reporting tools – and at least 12-18 months of history – to update par levels based on actual use
• As inventory drops below par, a purchase order is created for your review and release
2. Receive and record incoming supplies
• As PO items are received into your center or facility, record the receipt. Your materials management system should automatically increase inventory levels for that item
• Put away products in designated inventory areas so you and your materials system know where supplies are located
3. Record supply consumption
• As supplies are used during cases, record the depletion to decrease inventory levels
4. Review inventory levels and upcoming schedules to ensure adequate inventory
• Combine par with a view of demand, so particularly heavy or light schedules are considered
• Conduct periodic cycle counts to ensure ongoing, accurate inventory levels
• Compare inventory levels across time periods to help manage for change, growth, seasonality
Click here to read more about Perpetual Inventory Tracking.