Open vs Closed

A comparison of Open systems (barcode-based) versus Closed systems (locked, automated supply cabinets)

Benefits
of
Point-of-Use
Inventory
Management

HEALTHLINE SOLUTIONS

VS

CLOSED SYSTEMS

Faster,
Better,
Cheaper
Bar code is faster, cheaper, and more accurate
VS Locked supply cabinets are slow and expensive

OPEN IS FASTER

  1. Wal-Mart is often presented as the ideal in supply chain automation. What capture technology do they use at the cash registers for maximum speed? What does your grocery store use?
  2. Recent time-and-motion studies showed it only takes an average of 10 seconds to perform an item transaction by scanning patient and item barcodes.
  3. And when pulling 30 of the same item, just key the quantity "30" using the keypad.

VS

CLOSED IS 390% SLOWER!

  1. How long would it take to go grocery shopping if everything were in a locked dispenser? You wouldn't shop that way, so why force nurses to waste that much time?
  2. An AHRMM 2003 seminar presenter1 stated that it takes an average of 49 seconds per transaction using a closed supply cabinet.
  3. But when pulling 30 of the same item, the button must be pressed 30 times.

OPEN IS BETTER

  1. The industry accepted error rate of barcode is 0.1 errors for every 1000 entries.
  2. Some of our customers are capturing over 99% of all item charges.
  3. To capture usage for an item, just scan its barcode
  4. Scan everything for usage and charge information, whether expensive or cheap, whether drop-ship, stock, or non-stock.

VS

CLOSED IS LESS ACCURATE

  1. The industry accepted error rate for key entry is 33 errors for every 1000 entries. That's 330 times more errors than barcode!
  2. An AHRMM 2003 seminar presenter1 stated his hospital currently only captured 50% of item charges, and would be happy to be capturing 90% someday.
  3. To capture usage of an item, you may have to look it up by one of many aliases, and this takes a long time.
  4. You have to put even the cheapest items into the cabinet if you want to track them. How are drop-ship items handled?

OPEN IS CHEAPER

  1. Our customers report a savings of up to 50% in FTEs.
  2. Our data collection stations can cost less than $5,000 to purchase outright (depending on architecture and equipment)
VS

CLOSED IS 2-3 TIMES MORE EXPENSIVE

  1. An AHRMM 2003 seminar presenter1 stated "it's not about ROI" and "we actually ADDED FTEs".
  2. Another AHRMM 2003 seminar presenter1 stated it required 25 automated supply cabinets (about $63,000 per month in lease cost) to manage $900,000 of inventory.
Ask your nurses if they would prefer something better and faster!
Ask your management if they would like to increase revenue capture while lowering labor and supply expenses!
1 We will be glad to tell you the seminar where these statements were made. Please contact Sales if you are interested.

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