Matching Inventory to Demand

Ensuring that you have the correct quantity and type of inventory to meet the demands of your facility’s surgical case load is a key component to running your department efficiently and cost effectively. SPM’s reports can help you answer two questions related to inventory size and mix:

  • Do I have enough inventory of each product to meet the demands?
  • Do I have too much inventory of any products for my current demands?

If you identify a product for which you have too little inventory to meet demand, you can decide if you want to redistribute instrumentation from back-stock inventory or from other products to create more indexes of that product, or if you need to purchase additional instrumentation. If you identify a product for which you have more inventory than necessary to meet demands, you might decide to redistribute the instrumentation to other products or to instrument back-stock. In this way, you can match the size and mix of your inventory to the demand of your facility.

To help answer these questions, SPM provides the following three-step analysis using reports within the application.

  1. Compare product usage with available inventory to identify products where inventory and demand do not match.
  2. For products where inventory and demand do not match, examine the specific products’ usage over time to determine if the usage has changed. If the product’s usage has changed, determine why the change has occurred and if usage is likely to remain at current levels. If usage has been consistent, you can take action to address the mismatch between inventory and demand.
  3. Determine the financial impacts of either purchasing new instrumentation or redistributing underutilized instrumentation to different products or to back-stock inventory. Note that you need to have instrument pricing data entered in SPM to complete this step.

If you would like more information on the SPM application we invite you to view our demo or contact us for a live demo. For our current customers only, if you would like to see the detailed step by step process you can implement within your own SPM environment click here.