Delivering radiology supplies just-in-time

Area of Science:

• Healthcare Management
• Supply Chain Optimization
• Radiology Operations

Background:

• The Dartmouth Hitchcock Medical Center (DHMC) radiology department faced challenges with traditional inventory management.
• High inventory levels of radiology supplies represented a significant financial burden.

Purpose of the Study:

• To implement and evaluate a just-in-time (JIT) inventory management system for radiology supplies.
• To reduce inventory holding costs and improve supply chain efficiency within a healthcare setting.

Main Methods:

• Adoption of a just-in-time (JIT) inventory system, centralizing ordering under a dedicated asset manager.
• Standardization of radiology supplies and development of a request for proposal (RFP) for vendor selection.
• Phased implementation, starting with the central DHMC, then expanding to affiliate hospitals and clinics across the network.

Main Results:

• Reduced in-house radiology supply inventory value from $400,000 to $16,000 (a 96% decrease).
• Successfully transitioned to a single-vendor contract managing 90% of network consumable supplies.
• Achieved further cost savings for the entire DHMC network, especially for smaller facilities.

Conclusions:

• Just-in-time (JIT) inventory management is a highly effective strategy for reducing costs in radiology departments.
• Careful vendor selection and network-wide implementation can maximize savings and operational efficiency.
• Continuous monitoring and adaptation are crucial for sustained success of JIT inventory systems.