Case Study: How a healthcare provider optimized supply chain

Ashok Ram By  September 18, 2023

Hello everyone! Today, we’re diving into a real-life success story from our own backyard in Tamil Nadu. This isn’t just theory; it’s about practical steps that helped a well-known healthcare provider solve a big problem: getting their medicines and supplies on time and without wasting money.

Imagine a hospital where doctors need a specific medicine, but it’s not available. Or where a simple bandage runs out during an important moment. This was the challenge faced by ”’Shanthi Hospital”’, a mid-sized healthcare facility in Madurai.

The Big Problem: A Messy Supply Chain

Before we stepped in, Shanthi Hospital had a supply chain that looked like a tangled ball of yarn. Here’s what was happening:

  • Manual Orders: Every department placed its own orders for medicines, gloves, and other items. This meant lots of paper, phone calls, and confusion.
  • Delays: Suppliers often delivered late because orders were not clear or were placed at the last minute.
  • Stockouts: Important medicines and surgical items would sometimes run out, leading to delays in patient treatment.
  • Wasted Money: Sometimes, too much stock was bought, leading to items expiring. Other times, urgent purchases cost more.

This messy system was affecting patient care and costing the hospital a lot of money. They needed a simple, effective solution.

Our Simple Solution: Making Things Smooth

We worked closely with the team at Shanthi Hospital to put in place a few easy-to-understand changes:

  1. One Central Point: Instead of many people ordering, we created one central team for all purchases. This team was responsible for getting everything from medicines to cleaning supplies. This made sure everyone knew what was needed and when.
  2. Smart Stock Planning: We helped them figure out how much of each item they actually needed. For example, if they used 100 boxes of a certain painkiller every month, they would order just enough for that, plus a little extra for emergencies. No more ordering too much or too little!
  3. Finding the Right Friends (Suppliers): We helped Shanthi Hospital find the best local suppliers in Tamil Nadu. We looked for suppliers who were reliable, offered good prices, and could deliver quickly. This included local pharmaceutical distributors and medical equipment vendors.
  4. Simple Digital Tracking: We introduced a very basic computer system (like a simple excel sheet on steroids) to keep track of all items – what came in, what went out, and what was left. This was simple enough for everyone to use, even those not used to computers.
  5. Regular Checks: We helped them set up weekly meetings to check stock levels and plan for the next week. This was like a quick team huddle to ensure everything was on track.

The Amazing Results: A Healthier Hospital

After implementing these simple steps, Shanthi Hospital saw big improvements:

  • Costs Went Down: By buying smarter and avoiding rush orders, they saved nearly 15% on their monthly supply costs. This money could now be used for better patient facilities.
  • Faster Deliveries: With clear orders and reliable suppliers, medicines and supplies arrived on time, every time.
  • No More Empty Shelves: Stockouts became a rare thing. Doctors and nurses always had what they needed to treat patients.
  • Happier Patients: With no delays in getting supplies, patients received their treatment faster and more smoothly. This meant better care and happier faces.
  • Less Stress: The hospital staff felt less stressed because the supply system was now organized and predictable.

This case study of Shanthi Hospital in Madurai shows that even big problems can be solved with simple, practical steps. By streamlining their supply chain, they not only saved money but also improved the quality of care they provide to people in Tamil Nadu. This is a clear example of how thoughtful planning and simple execution can lead to big wins in any business, especially in critical sectors like healthcare.

If you’re a business owner or a leader facing similar challenges, remember that sometimes, the simplest solutions are the most powerful. We help businesses like yours find these simple, impactful solutions. Feel free to reach out to us for a chat!

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