In a world where technological advancement is rapidly progressing across all industries, it may be tempting to envision the supply chain of the future as a completely automated process.
Though advancements like automated inventory management and RFID scanning have been shown to improve efficiency and reduce wastei, all-encompassing automation may actually be detrimental to the healthcare supply chain. Ideally, technology should be used to support (not replace) supply chain staff and free up valuable time for clinicians to spend with their patients. Here are three key places to implement automation and three places to avoid it.
Areas to implement automation:
- Where human error is a concern and visibility is vital: When processing large amounts of relatively straightforward data (as when managing number of SKUs and total usage within a hospital), human error can result in inaccurate records and lead to forecasting issues in the future. In fact, manually driven processes are the main reason for lack of supply chain visibility for 79% of supply chain enterprises worldwide.ii To have the most accurate inventory data at your fingertips, consider implementing automated inventory management in areas of your hospital where costly products are being lost or manual forecasting is consistently imprecise.
- Where tedious, repetitive processes reduce staff bandwidth: It’s no surprise that robots have taken the supply chain world by storm; their ability to streamline menial processes is part of the reason that the number of robots in warehouses is projected to reach 620,000 in 2021.iii Automation is excellent for supplementing manual processes in your facility to free up human bandwidth for more vital tasks like strategy work or time with patients. If your frontline staff is spending more than two hours on supply chain management each week, iv it may be time to investigate automation solutions.
- Where it fits with your processes (and not vice-versa): If you’re considering modernizing an aspect of your supply chain, it’s vital to understand how new technology will integrate with your facility’s existing processes. Selecting the best offering on paper can be a common pitfall that actually leads to increased complexity, frustration, and difficulty getting your staff on board. The best approach is to first examine your existing workflow for processes that need improvement and then explore software offerings that address your problems instead of creating new ones.v Don’t put the cart before the horse.
Areas to avoid automation:
- Where flexibility is necessary: Automation can be a useful reference tool when it comes to forecasting, but the human abilities of thinking strategically and adapting to last-minute changes should still be utilized in final decision making.iii For a low-stakes decision, an automated inventory management system will often do the trick, but high-level strategy should be determined by those who understand your facility well and can take your clinical culture into account. If there’s an area within your facility that’s highly unpredictable and requires staff to turn on a dime, brain power might serve you better than a software system alone.
- Where human intuition facilitates human interaction: Technology may drive efficiency, but can it drive strong cross-functional relationships within your facility? Or put a personal touch on an interaction? Alignment across different parties can’t always be simplified down to what a software program system says is best. Even with advancements in AI, human beings have the advantage when it comes to perception and social cues.iii Furthermore, healthcare organizations value supply chain leaders for their ability to interact cross-departmentally and communicate effectively to create value, which is a skill that AI has yet to achieve.
- Where cost effectiveness is questionable: In some facilities, the high cost of entry for certain technologies might be impractical. Weigh the long-term and short-term costs and benefits of automation to see if implementing a new software or hardware is cost effective for you. Consider employing an automated inventory management pilot program in a specific department or storeroom of your facility or working with a solutions provider to quantify expected returns on potential technology investments. If you can’t justify the cost in a scientific and reliable manner, it’s probably time to table modernization efforts for a later date.
To evaluate your organization’s readiness to implement supply chain technology, take a supply chain optimization assessment today.
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ihttps://www.beckershospitalreview.com/finance/transforming-the-supply-chain-why-automation-is-the-key-to-waste-reduction.html
iihttps://www.hollingsworthllc.com/best-practices-optimizing-supply-chain-management/
iiihttps://www.supplychaindive.com/news/what-not-to-automate-supply-chain/546488/
ivhttps://www.beckershospitalreview.com/supply-chain/room-for-improvement-3-key-findings-from-our-latest-supply-chain-survey.html
vhttps://www.supplychainquarterly.com/topics/Procurement/scq201101bestpractices/