BlueQuesday Tips

For today’s tip, I’d like to dig a little deeper into two of the Optimization Statuses I defined last week. I’ve included them again below for reference:

Converting Bins or Items from one of these two statuses to Healthy is the best way to make immediate strides toward optimizing your supply chain. The BlueBin algorithm provides a Suggested Bin Quantity column for each item.

• Critical Items must be managed daily and may change throughout the year. For example, certain supplies fly off the shelves quicker during RSV season and need the Par to be higher here than during other periods.
• Hot Bins are still being ordered quicker than expected but are not as crucial to manage. Supply Chain Specialists and Managers should address changing the Par for these Bins as they have time throughout the week.

Increasing the Par for these Bins or Items to the suggested quantity will get them closer to a Healthy status, reducing Stat Calls and Stockouts in your supply rooms. This will ensure supplies are on hand when medical professionals need them, ultimately reducing supply chain costs across our organizations.

Last week we dove deeper into our algorithm’s Critical and Hot status indicators. Today we will look closer at the status indicators on the other side of Healthy: Slow & Stale. I’ve included the definitions below as a refresher.

These two categories are likely items that are either overstocked, underused, or unnecessary in your supply rooms. These can hurt in two ways: 1) They take up valuable space that could be converted for other Items or Bins which are needed, and 2) Products with expirations that are not being used end up as a sunk cost, damaging the bottom line.

• Slow Items may or may not be a concern. It could be Slow due to sporadic high-volume use with ample time intervals. However, the Item may not be used as often as originally planned. Supply Chain Managers should review Pars semi-regularly to ensure appropriate quantities are utilized.
• Stale Bins commonly are products that were deemed necessary due to tribal knowledge or specific user desire. Data is showing these products are not required at the level predicted. Conversations should be held with medical staff to determine the viability of removing or reducing the Par.

By getting these Bins and Items to a Healthy status or removing them altogether, the supply nodes will be leaner and more streamlined.  As you utilize the Slow and Stale indicators, you will realize significant dollar savings await your program. Another benefit of using BlueQ is to optimize the overall Supply Chain System!

This week, we are still highlighting Slow and Stale savings opportunities. This week is individually looking at your hospital (not shared with the user group publicly) [Individual emails have been sent to separate organizations, this version only has data from the BlueBin Demo Dashboard].

I took screenshots highlighting a few items in your inventory currently in these states (once again, this email is only going to BlueQ Users in your organization). Reducing the current PAR to the “Suggested Par” (highlighted below) will enable you to streamline your supply procedures. This can also create more room in your supply nodes and prevent items from expiring. Enacting these changes across your nodes is one of the quickest ways to save costs in your organization.

1. Select the Item Velocity Report from your Main Dashboard
   
   
2. In the Item Velocity Report, select the drop-down menu titled Item Status and check only the Slow and Stale options
3. I highlighted a couple of items that appear to have a bin quantity that is too high. Under the column header Item Qty, you can see the current PAR for one bin. For example: Needle Hypo A 25X 1-1/2ABEVEL has a current bin quantity of 20. Look to the right under the column header Sugg Bin Qty, and you’ll see our algorithm has determined the optimal bin quantity for this item is 3.
   
4. The next step is crucial. A discussion should be held with the clinical leader and staff using that supply node (the node can be found under the column header Location) to determine if this item can be reduced. The PAR may be high because the item is not used often but is consumed in bunches when necessary. However, if this is not the case, reducing the PAR or removing the item will open space in the supply node and reduce the waste of unused items.

These are just a few items with high bin quantities and a lower Suggested Bin Quantity. Utilizing BlueBin’s algorithm to optimize these PARs and others in your supply nodes will streamline your supply chain and save your organization money and space!

One important note: once the par has changed, allow 30 days for our analytics to gather data. After 30 days, our algorithm will use the new data to update the Bin Status and provide a new Suggested Bin Quantity if still required to move the Bin to Healthy.

Last week’s dive into more specifics got a lot of positive responses, so I wanted to do something similar this week but focusing on Critical Items. Like last week, we are looking individually at your hospital (not shared with the user group publicly) [Individual emails have been sent to separate organizations, this version only has data from the BlueBin Demo Dashboard].

I took screenshots highlighting a few items in your inventory currently in Critical status. These items are the most important ones to manage and should be reviewed daily by Supply Chain Managers. By Increasing the Par to the Suggested Bin Qty amount, you will ensure medical staff has supplies on hand when needed. This will reduce stockouts and Stat Calls, saving your organization money and work hours.

1. Same as last week, select the Item Velocity Report from your Main Dashboard
   
   
2. In the Item Velocity Report, select the drop-down menu titled Item Status and check only the Critical option
3. I highlighted a few items with a bin quantity that is too low. Under the column header Item Qty, you can see the current PAR for one bin. For example, SET IV EXT MICROCLAVE LL 7IN has a current bin quantity of 100. Look to the right under the column header Sugg Bin Qty and see our algorithm has determined that the optimal bin quantity for this item is 213.
   
4. These items are being utilized far more quickly than initially anticipated. Supply Chain Managers should immediately increase the PAR (a larger bin may be needed to accommodate the new PAR). The higher PAR will enable your Supply Specialists to focus on bins that are turning at a healthy rate and not lose time getting pulled away for Stat Calls. This will have a secondary effect of reducing stockouts, thereby increasing your overall supply chain efficiency.

Same important note: once the par has changed, allow 30 days for our analytics to gather data. After 30 days, our algorithm will use the new data to update the Bin Status and provide a new Suggested Bin Quantity if still required to move the Bin to Healthy.