Success Stories

Innovative 2-bin Kanban solution to streamline inventory management

For hospitals, receiving high-quality and timely medical and surgical supplies is critical, so distributors really cannot afford to misstep on their delivery. Access to real-time, accurate data for supply chain management is key for building that right balance between product manufacture and delivery. Adoption of smart automation can further streamline inventory management and reduce operational inefficiencies.

Our client engaged us at a time when their hospital inventory management process was not streamlined and automated. We worked with them to build a unified supply chain solution that would provide unparalleled workflow efficiency and data integrity.

  • The Challenge

    The client’s lack of appropriate reporting tools posed several challenges to their supply chain setup:
    • Poor insight into stock levels lead to problems such as excess or insufficient inventory, expired products, and poor demand signaling
    • Inflexible systems functioned via fixed order-processing techniques that did not take consumption levels, costs, demand, and other important metrics into consideration
    • Inflexibility lead to clinicians spending time doing non-clinical activities such as manual material management
  • The Solution

    We combined lean management techniques with Amazon Web Services (AWS) to develop a solution that continually increased supply chain efficiency. Features of the solution include:
    • Accelerated Solution Design methodology to rapidly prototype and capture functional requirements
    • Automated capabilities to capture and understand consumption patterns over time
    • Alerts for personnel when actual usage exceeds or lags behind expected usage with the ability respond by modifying order quantities
    • Demand forecasting to identify hot and cold items and enable effective decision-making
    • AWS infrastructure to effectively deploy to various environments based on a variety of requirements
  • The Benefit

    Virtusa’s streamlined inventory management solution provided the client with a number of benefits:
    • 61% reduction in inventory resulting in significant supply chain management cost savings
    • 48% reduction in time for clinicians to obtain supplies
    • 87% reduction in time for clinicians to manage materials activities
    • Prevented overstock and understock situations and eliminated holding expired and obsolete inventory
    • Replaced expensive point-of-use systems