Every hospital management is looking to reduce its costs, and the supply chain is coming on the focus always. For a long, long time, the supply chain has been handled inefficiently, mainly by the people who manage the surgical implants and supplies, and which makes up a huge share of the cost of supply for the hospital. This is primarily due to the top-down approach that hospitals have adopted traditionally for ordering surgical implants and supplies such that when the doctor wants the implants, they should be available in the hospital. But inventory managers are not so efficient to make sure that they are available in inventories. Also, there are expired and wasted inventories that makes it difficult for the management to make a picture out of it.
The Trick Metric You Need to Track
Numerous well-known metrics assist you in identifying if your supply level is accurate, but one metric can help you handle your efficiency better than any kind of various other, such as Inventory Turnover. Inventory Turnover is an effectiveness proportion that considers exactly how typically you are undergoing your inventory in a particular period. The formula for Inventory Turnover is:
Inventory Turnover = Cost of Item Sold/Average Inventory
How To Track Stock Turn Over as a KPI
The first step to integrating Inventory Turnover as a metric is to begin measuring and tracking it. Despite how efficiently (or inefficiently), you’re running your inventory procedures today; it is a near warranty that when you start tracking Inventory Turnover as a Key Performance Indicator (KPI), you will see chances for renovation.
To start tracking Inventory Turnover, you’ll need accessibility to great information around your on-hand supplies as well as inventory usage. While Supply Turnover typically portrays a yearly statistic of the number of times each year you are passing on your stock, you can determine Stock Turnover monthly by annualizing the month-to-month usage data. To track your Supply Turnover on a month-to-month basis merely make use of:
Monthly Inventory Turnover = (Monthly Inventory Use x 12)/End-of-Month Handy Inventory.
You can use meddical supply inventory to make a proper track of your inventories and have control over them.