The retail industry, for example, has been utilizing analytics for quite some time to track individual products from the point of manufacturer through to the point of sale with free-flowing information up and down the supply chain.
But in the context of today’s complex healthcare supply chain, with its many moving parts and numerous obstacles to efficiency, RFID technology is revolutionizing the way hospitals manage inventory and track capital assets to great effects:
1. End-to-end supply chain visibility.
RFID solutions provide the accuracy needed to enable an end-to-end networked supply chain in which all stakeholders – manufacturers, distributors and providers – swim in the same pool of information. This contrasts with traditional healthcare supply chains in which fragmented and siloed ecosystems lack integration between suppliers and purchasers.
Improved efficiency and coordination among participants allows both hospitals and manufacturers to benefit from reduced and optimized inventory, real-time inventory allocation within integrated delivery networks (IDNs) and regions, and reduced waste overall.
2. Accurate usage capture and analytics.
Advances in data capture and analytics, enabled by RFID technology, have bolstered the growth of networked supply chains, which span from manufacturer line to patient point of use. This allows manufacturers to see real-time, accurate inventory and consumption data, prompting early demand signals and all but eliminating product expiration challenges.
For hospitals, accurate charge capture with RFID tracking optimizes reimbursement. It also enables hospitals to very closely manage – and therefore avoid – discrete events that impact patient safety, like expired products, stock-outs or the presence of recalled products.
Coupled with a powerful analytics platform, supply chain leaders are empowered to harness robust product usage data and make more informed decisions about product use, choice, and availability holistically – across IDNs or entire departments. Such knowledge begets best practices for product usage and can drive down total costs while improving outcomes.
3. Efficient clinical workflow.
Utilizing RFID technology, the hospital supply chain is better equipped to track high-cost devices without burdening clinical staff with tedious supply chain and inventory management responsibilities. For example: Havingthe right supply chain technologies in place can also free up clinician time to focus on patient care. When products are immediately available when and where they’re needed, clinicians can spend far less time counting products, preparing for procedures or leaving the bedside to search for products. That means more time spent caring for the patient and more resources dedicated to the support quality of care initiatives.
Recognizing the enormous benefits of the technology, like those listed here, some of healthcare’s biggest players have already incorporated RFID into their facilities. The RFID revolution is here, and it’s increasing efficiency, improving the patient experience, and changing the bottom line for the healthcare supply chain.
Originally published as an Essential Insights article.
