In healthcare, the supply chain is often like the unsung hero of a drama—quietly making things work behind the scenes. But when things go wrong, they can go spectacularly wrong. It starts with subtle signs: incorrect inventory levels, staff relying on pen and paper despite millions spent on technology, or shelves stocked with supplies no one remembers ordering. These are whispers of larger issues, but if left unaddressed, they can crescendo into full-blown operational chaos.
Let’s take a closer look at these signs—the ones that might already be hiding in plain sight.
The Vanishing Act: When Inventory Doesn't Add Up
Imagine walking into a storeroom to find that the IV bags your ERP system insists are there…aren’t. Now multiply that scenario across hundreds of critical items and hundreds of dispersed PAR locations. The result? Staff scrambling to reconcile reality with system reports, while patients need to be cared for.
At one large regional health system we work with here at RiseNow, a quick assessment revealed that only 30% of the inventory in a key storeroom matched the data in their system. This disconnect led to cascading inefficiencies, wasted hours on manual counts, and cost $16 million in system-wide write-offs. The toll wasn’t just financial; trust in the system eroded, and staff morale followed.
Stuck in the Past: The Manual Counting Dilemma
Despite living in an age of advanced technology, manual inventory counts refuse to die in many healthcare systems. If you’ve ever seen a staff member walking through the storeroom with a clipboard instead of a scanner, you’re witnessing a symptom of a deeper problem.
Why does this happen? Sometimes the technology feels too cumbersome. Sometimes the data in the system is so unreliable that staff revert to pen and paper to compensate. Whatever the reason, this outdated practice drains time, creates inconsistencies, and often masks larger systemic issues. This lack of trust causes staff to develop “workarounds,” which, in turn, creates both process and financial issues.
The Overflow: When Min-Max Levels Stay Stagnant
There’s nothing quite like walking into a storeroom overflowing with expired supplies. It’s a scene no CFO wants to envision but one that happens all too often. Outdated min-max levels are often the culprit, set years ago and left untouched despite constantly shifting demand.
At one facility, a thorough review uncovered bins packed with inventory that hadn’t been touched in months, while other critical supplies were routinely on backorder. Without regular recalibration, these outdated thresholds become a source of waste, inefficiency, and frustration for both clinical and supply chain staff.
One Item, Too Many Replenishment Paths, Not Enough Strategy
Imagine standing in an OR, waiting for a critical supply that should have been restocked—but wasn’t. Not because it was out of stock, but because inconsistent sourcing created delays.
A storeroom plays a key role in the supply chain, but in many health systems, it’s just one of multiple sourcing channels. Some PAR locations pull from the storeroom, while others order directly from manufacturers or distributors. Without a clear stocking strategy, these inconsistencies drive up costs, delay replenishment, and lead to product waste.
This fragmentation doesn’t just confuse staff—it disrupts operations, inflates costs, and puts patient care at risk. While some areas face shortages, others end up with expired inventory due to over-ordering. Without alignment, the system can’t ensure that critical supplies are available when and where they’re needed most.
Eroding Trust: The Data Dilemma
When was the last time you trusted your supply chain data enough to make a key decision without second-guessing? For many healthcare leaders, that trust does not exist. The ripple effect is profound: without reliable data, forecasting turns into guesswork, and operational planning becomes reactive at best.
At one health system we worked with, leadership confidently cited a 95% inventory accuracy rate—until they were asked to show the data. What followed was the discovery of systemic gaps, from poor data input processes to a lack of accountability measures, which revealed a true inventory accuracy rate of 27%. The result? An organization paralyzed by its inability to trust its own numbers.
The Turning Point
If these scenarios feel uncomfortably familiar, you’re not alone. They’re the quiet crises that build over time, often unacknowledged until they reach a breaking point. But the good news is that they’re also solvable.
At RiseNow, we specialize in untangling these complexities. When the client we mentioned earlier faced a $16 million inventory write-off, we helped them rebuild their processes, retrain their teams, and regain trust in their data—bringing inventory accuracy up to 90%. For another client, we introduced tools and processes that transformed chaotic storerooms into models of efficiency. And in yet another, with a CSC, we helped establish sustained, raw fill rates of more than 99%.
The common thread? Beginning with a thorough assessment to identify the root causes culminating in a tailored approach to address them. Because a healthy supply chain doesn’t just save money; it saves time, builds trust, and ultimately improves patient care.
Let’s Start the Conversation
Your supply chain might not speak up, but it’s always sending signals. Don’t wait for the whispers to become shouts. Reach out to RiseNow today and take the first step toward a stronger, smarter, and more reliable supply chain.
