Hospitals need to have an efficient logistics network to improve the delivery of healthcare services. However, it is not easy to manage a complex logistics network since it involves obtaining resources, managing inventories, and delivering products. It also involves services to the healthcare providers and patients. 

In addition, the physical goods and information about the medical products pass through some independent stakeholders including manufacturers, hospitals, insurance companies, and some regulatory agencies. These details are important to keep up with and they are constantly changing.

Creating Effective Inventory Management:

Sometimes manufacturers do not move the inventory through their supply chains quickly. If the products expire because of not being used appropriately, revenue will be lost, and the profit margins reduced. This is why hospitals should manage the inventory process efficiently and effectively. 

Healthcare executives can do this by using a quality equipment management system that will help them to manage inventory levels. When hospitals do not have a capital equipment management system, there will be underutilization of the existing equipment as well as over-ordering.

Using Technology To Simplify Processes:

Healthcare executives can improve the logistics network by using effective technologies which are supported by strong analytics. Implementing automation tools and data analytics can simplify logistics network management. 

When healthcare executives concentrate more on automation and technology, they can help to reduce financial waste while supporting more data-driven and transparent choices. Using technology makes the process easier and it’s much more effective now than it was years ago. It makes sense to continue to implement technology throughout the healthcare world.

Creating A Good Pricing System:

Many organizations are using accounting methods to enable their pricing systems to run smoothly. These methods include Medicare cost allocation and the ratio of cost to charges. The pricing systems also require a pricing strategy. 

Therefore, the providers should capture, analyze, and manage information on inventory, labor, and other expenses. Moreover, the provider should invest in tools that will enable them to gain insights and information on pricing, how to reduce expenses, and create more value. 

Furthermore, providers need to compare the pricing from their systems with the pricing of their competitors by reviewing publicly or commercially available databases. Additionally, there are some states which provide data sets that enable medical facilities to benchmark with competitors either individually or by region.

Improving Order Accuracy:

Sometimes healthcare providers struggle with a huge error rate that is associated with the ordering processes. When the facilities order the wrong products, they will not only lose revenue but will also lack the products they need to deliver treatment services. 

In addition, ordering errors can cause medication errors, which can in turn lead to poor health outcomes. When the providers accurately order the products they require, they will not waste time trying to reorder the right products. Thus, providers should have order controls in place to help them improve the inventory management process.


Hospitals can improve their logistics network and reduce their costs by improving order accuracy, creating a great pricing system, using technology to simplify processes, and using an effective inventory management system. 

These solutions will help hospitals to avoid underutilization of the existing equipment as well as over-ordering, reduce expenses and create more value. It’s important to keep up with the supply chain assurance, and Vizient, Inc can help with those specifics. Hospitals need to focus on the easiest process. 

These networks are necessary to make these facilities work to the best of their ability. Ignoring these processes or not continuing to update them can make everything harder than it needs to be.