Supply Management

Mass General Brigham Supply Chain Management manages inventory and ensures that organizations have the supplies and products they need.

Supply management processes keep costs stable and utilize resources effectively to increase profits and efficiency. Supply management may be influenced by:

  • Product preference
  • Pricing constraints
  • Regulatory requirements
  • Governmental agency reimbursement policies
  • Breakdowns within the supply chain
  • Patient needs

Periodic Automatic Replacement (PAR) levels are the optimal amount of inventory needed to meet customer demand and provide a cushion (safety stock) in case of unexpected demand or delay in delivery. PAR levels are important because:

  • Excess inventory can tie up money that may be better used elsewhere.
  • Overstocked perishable supplies can cause waste and affect profits.
  • Overstocks can result in:
    • Expired products, a regulatory and quality/safety risk for practices.
    • Obsolete products, which can influence profits.
  • Lack of inventory can affect patient care and/or create a medical emergency.
  • Assign a specific role/employee to track PAR levels.
  • Set PAR levels for each inventory item by forecasting customer demand.
  • Bring an item to the PAR level using cycle counting (an inventory procedure where a limited area of inventory in a specific location is audited and counted on a specified day).
  • Maintain PAR levels by tracking the minimum quantity of an item stored, and which items are automatically reordered.
  • Use the following checklist to forecast demand and to set, implement, and maintain PAR levels.
    • Manually count the items in stock.
    • Track the number of supplies used over a certain period.
    • Create a timeline to understand how many days specific orders take to arrive.
    • Track expiration dates.
    • Consider implementing a secondary bin option (keeping only PAR levels on hand and a small reserve in another area). Order the next batch once the first bin is empty.
    • Follow First In, First Out (FIFO) rules to:
      • Reduce number of expired medical products and associated costs.
      • Reduce costs associated with expired medical products.
    • Implement a signal system to notify the manager/staff to order more supplies.

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