The Advantages of Inventory Control in Health Care Organizations

Inventory control systems have been widely used by retail businesses to control product losses due to theft and to keep store shelves well-stocked. Health-care organizations benefit from deploying an inventory control system, even though they generally do not sell products. Not only do inventory control systems help control for losses, they can also help prevent the spread of disease.

Losses

• Equipment such as ultrasound machines, computers, thermometers and surgical instruments are costly to replace. Unfortunately, some individuals may decide to take equipment for personal financial gain or they may simply lose or misplace equipment. If the health-care organization is using an inventory control system effectively, it can track and control such losses. Tracking inventory losses will help the organization keep operational costs down.

Disease Control

• Health-care organizations can use a functional inventory control system to prevent the spread of disease. A study conducted by shipping giant UPS concluded that an inventory control system would have prevented the spread of mad-cow disease at a hospital in England. If the hospital had tracked inventory such as surgical instruments, it could have traced and prevented infected instruments from being used on other patients.

Stock Levels

• An inventory control system that employees and administrators use properly will help keep stock levels of supplies and equipment at an efficient level. Without an inventory control system, employees or others may not realize a certain stock has been depleted, meaning none will be available during the time it takes to replenish the supply. Out-of-stock inventory affects the quality of the service provided by the organization. Inventory control systems will also prevent excessive levels of inventory, particularly important for perishable items such as medications.