Supply chain tip of the day: Avoid the hidden cost of prepackaged supplies

When hospitals purchase prepackaged supplies, they are not only paying the cost of the supplies included in each pack, but also for the packaging materials and assembly fees, according to Tom Fox, a managing director at healthcare consulting firm Novia Strategies.

He shared the following tip with Becker's Hospital Review.

"While prepackaged supplies are commonly perceived to be more convenient for inventory control and preferred by the end-user, their hidden costs can add up significantly. Hospital supply chain managers can avoid these costs by internalizing bundling processes. They should also examine the hospital's use of prepackaged supplies for procedures in interventional areas, all custom trays and kits used across every unit, as well as admission packs for new patients. The hidden costs of prepackaged supplies may not be apparent to even the most cost- and resource-conscious clinicians or finance teams, as they will not directly appear on invoices, but they will impact the bottom line."

If you would like to submit a supply chain tip, please email Mackenzie Bean at

More articles on supply chain:

Vertex Pharma makes 1st price hike on cystic fibrosis drug
Edwards' Lifesciences earns FDA approval for heart valve: 3 things to know
Novo Nordisk recalls insulin pen cartridge holders

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