Inventory Case Studies
Managing the Six Cost Contributors that will reduce your Inventory cost by 20%

The traditional cart system cannot address the SIX Cost Contributors that prevent you from reducing your Inventory cost by 20%.

Esh-IGT inventory provides you with data that can help you to address the Six Cost Contributors one-by-one and move beyond the traditional cart management and point you in the right direction to reduce your inventory cost by 20%.

1.Track your inventory usage and cost by staff, procedure and patient.

The reports below track each source of consumption, staff, procedure and patient, to identify potential savings.

  • Inventory performance by staff
  • Inventory usage by procedure and patient



2.Eliminate costly shortages by foreword planning your Inventory consumption based on your patient scheduling levels.

Foreword planning is a key performance indicator (KPI) to identify your future consumption and compare it to current stock-on-hand to eliminate costly shortages and lost of revenue by patient rescheduling.

  • Inventory forecast by item
  • Inventory forecast by supplier

3.Identify waste and over usage by standardizing your actual inventory consumption by procedure.

  • For each modality Esh-IGT provides an independent library where the inventory is predefined for each procedure.
  • When the patient is scheduled for a procedure the inventory from the procedure’s library is copied into the patient encounter.
  • During the procedure the actual inventory usage is recorded including waist.
  • The inventory is automatically depleted from the item stock-on-hand.

Standardizing procedure inventory creates a unified inventory cost, eliminates the usageof expensive items and reduces costly shortages.

4.Replenish the stock-on-hand based on historical usage by procedure and facility.

Esh-IGT provides numerous reports that determine what is the best policy to replenish your inventory. The minimum and the maximum levels of stock-on-hand can be define by:

  • Individual Item and Facility.
  • Group of Items and Facility.
  • Factoring the lead-time of the item.

Based on the Item modifiers Esh-IGT automatically produces the Requisition report that calculates the order quantity for each item and groups them by supplier.

5.Track your Vendors cost Flag any item's cost irregularity by recording each invoice cost and automatically compare it to the vendor blanket order.

Retaining a log of the item cost history allow the implementation of the “Toyota Model” where vendor is obligated to reduce the item cost in return for a commitment to buy a certain amount of the product over a specific period of time.


6.Identify exceptions in specific procedure's inventory costs by tracking average and total inventory costs by procedure.

The Key Performance Indicators reports (KPI) for procedure costing provides the following analysis:

  • Detailed procedure cost.
  • Average procedure cost.
  • Cost trend by procedure.

Utilizing the information from the reports can point on the procedures with the Inventory exception cost and help to identify the best course of action to reduce inventory cost by 20%.






















How to Manage Your Inventory Beyond the Cart Using Esh-IGT

Esh-IGT inventory provides you with data that can help you beyond the traditional cart management and point you in the right direction to reduce your inventory cost.

To have your organization benefit from the Esh-IGT Inventory cost reduction process, you should follow these steps very closely:

Step 1: Start your own Pro-Active Inventory Control

The Automatic Inventory upload provides you with the
ability to set your pro-active inventory control parameters:

  • Purchasing Cost
  • Stock on Hand
  • Minimum level of Stock on Hand
  • Maximum level of Stock on Hand
  • Minimum level of Order Quantity

ESH provides an automatic upload process
to save on manual key entry.

Step 2: No Mistakes and Costly Shortage with the Pre-Define Procedure Inventory

Your pre-define inventory by procedure saves you
on mistakes, shortages and costly items by just following these steps:

  • Create the Procedure in the Modality library
  • Assign the Procedure Inventory from your
    list from step 1

Step 3: Forward Planning of your Inventory

Assigning the procedure to each patient schedule allows
you to accurately forecast your inventory requirements to eliminate costly shortages and avoid unplanned rescheduling.


Step 4: Automatically Manage your Stock-on-Hand and Report usage by Staff and Patient

Upon entering the Case end time of the Procedure,
Esh-IGT automatically:

  • Depletes the Case Inventory Quantity from the Item
    Stock On-Hand by Facility.
  • Calculates the Actual Case Cost.


Step 5: Provides Pro-Active Inventory Replenishment by Facility

  • Esh-IGT automatically produces the
    Requisition report based on current stock-on-hand and the item Min/Max quantity.
  • The report can be integrated with the current Hospital purchasing system.
  • This report helps you to eliminate shortages and order just what is required.

Step 6: Provides Key Performance Indicators (KPI) to Validate the Inventory Min/Max Quantity by Facility

  • Using the Report Inventory Min/Max by Ordering Department allows you to adjust the Inventory parameters according to the actual usage.
  • Applying the report recommendations you can save on:
    • Eliminating dead Inventory.
    • Reduce Inventory Cost by ordering what is just needed.

Step 7: Track your Vendors to validate the correct Item Cost – “Toyota Model”

Tracking the vendor cost by each item allows applying the “Toyota Model” to managing your inventory cost in the long term.

  • Esh-IGT provides you with unlimited Item Cost History.
  • The Item Cost History allows you to validate and compare any exceptions in the Item Cost Price.









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