Supply chain tip of the week: Overcome the common myth of product standardization

As costs continue to go up while reimbursements go down, hospitals and health systems are looking for new ways to control expenses without affecting the quality of care. One strategy that continues to gain momentum is standardization.

There is a common myth that product standardization means “skinnying down” products on the shelf via SKU rationalization. On the contrary, this solution is a data-driven process that yields new insights to improve clinical best practices. New efficiencies, cost savings and more time to focus on patient care are common results. In fact, here are five major reasons why hospitals and health systems choose to standardize¹:

1. Save money by converting to lower cost products.
2. Lower expenses by reducing waste.
3. Increase efficiency by standardizing common products across a hospital or entire health system
4. Make life easier by standardizing procedure packs.
5. Take a holistic approach to savings and efficiency by standardizing and integrating clinical and supply chain practices.

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¹“Leading the pack: standardizing procedure packs improves clinical and financial performance.” Presource Solutions, Cardinal Health. January 2019.