How Track and Trace Software Improves Hospital Inventory Management

Every year, hospitals across the world face the challenging task of managing vast and complex inventories. From life-saving medications to sophisticated medical equipment, the stakes are really high. A recent study found that on an average almost 10% hospitals lose their inventory annually due to inefficiency in tracking and management systems. This simply shows the reason why we urgently need innovative solutions to optimize hospital operations.

And this is where track and trace software make a difference. It transforms hospital inventory management by giving real-time visibility and control over inventory. This leads to better patient care, lower costs, and more efficient operations.

Why Asset Tracking Matters in Inventory Management

Asset tracking in simple terms means monitoring the items, their location, their condition and how they are being used. For hospitals asset tracking in important because it manages a wide range of items including medical machines, medicines, and surgical kits etc.

Apart from this, hospitals have a duty to take care of their doctors, nurses, new-born babies & patients. All these needs make asset tracking & inventory management even more important for hospitals, making sure that all the resources of the hospital are used efficiently & effectively.

Effective asset tracking is important for several reasons

1. Inventory Accuracy: Knowing the exact location and status of each asset helps hospitals to keep accurate inventory records. This prevents both overstocking and shortages, which can lead to financial losses and impact patient care.

2. Equipment Utilization: Tracking how assets are used helps find equipment that isn’t used as much as it could be. With this information, hospitals can better manage their resources and cut costs.

3. Maintenance Management: Regular tracking helps hospitals to schedule preventive maintenance, which keeps equipment working longer and reduces downtime.

4. Loss Prevention: Asset tracking helps prevent theft, loss, or misuse of valuable equipment.
5. Compliance: Many industries, including healthcare, require accurate asset tracking to meet regulatory compliance standards.

When asset tracking is combined with track and trace software, it gives a complete picture of how inventory moves and is used. This combination helps hospitals manage their inventory better and improve overall efficiency.

What is Track and Trace Software?

Track and trace software is a digital tool that is used to track and trace products as they move through the supply chain. If we talk about hospitals, this software is used to manage and monitor medical supplies, equipment, and medicines. It tracks these items from the moment they first arrive at the hospital to the time they are used in patient care.

How it Works: The software uses various technologies, including barcodes, RFID (Radio Frequency Identification), and IoT (Internet of Things) devices, to gather information about inventory items. This information is processed and shown in real-time on a central platform, which helps hospital staff monitor inventory levels, track the location of items, and manage stock effectively.

This track and trace software use various technologies that includes – barcodes, RFID (Radio Frequency Identification), and IoT (Internet of Things) devices, to collect & analyse information about inventory items. This information is then processed and shown in real-time on a central platform, which helps hospital staff to monitor inventory levels, track and trace the location of items, and manage stock effectively.

Technologies Used

• Barcodes: Scanned to record and track item movements.
• RFID (Radio Frequency Identification): Tags and readers detect item locations and movements, even without direct line of sight.
• Bluetooth Low Energy (BLE): Beacons and tags provide real-time location tracking and communication.
• Wi-Fi: Tracks items and personnel through Wi-Fi signals from wearables and devices.
• IoT (Internet of Things): Devices and sensors collect data on inventory items and their conditions.

Did You Know?

• 93% of healthcare executives still struggle with managing inventory.
• In 2024, it was reported that hospitals implementing real-time tracking systems saw a 50% reduction in inventory costs and a 20% increase in operational efficiency.
• By 2025, IoT and AI are expected to further boost inventory accuracy and support better patient care.

Key Features of Track and Trace Software

Real-Time Tracking

• Description: This feature allows hospitals to see the exact location and status of inventory items and assets at any time.

• Benefits: It helps reduce the time spent searching for items, ensures critical supplies are available when needed, and minimizes the risk of running out of stock or having excess inventory.

Automated Alerts

• Description: Automated alerts notify staff about important events related to inventory and assets, such as low stock levels, approaching expiration dates, or discrepancies.
• Benefits: These alerts support proactive inventory management and asset monitoring by prompting timely reordering, preventing the use of expired items, and maintaining compliance with regulations.

Data Analytics

• Description: The software’s data analytics tools analyze inventory and asset data to offer insights into usage patterns, forecast demand, and optimize inventory levels.

• Benefits: By using data analytics, hospitals can make better decisions on inventory procurement and asset management, reduce waste, and enhance overall efficiency.

Integration with Other Systems

• Description: The software can connect with other hospital management systems, such as electronic health records (EHR) and enterprise resource planning (ERP) systems.

• Benefits: This integration ensures smooth data flow between departments, improving coordination and patient care.

User-Friendly Interface

• Description: A user-friendly interface allows hospital staff to easily navigate the software and access information quickly.

• Benefits: It simplifies training and adoption, reduces the learning curve, and enhances the efficiency of inventory management and asset monitoring processes.

Also Read: How Hospital Management Software Is Transforming The Healthcare Industry?

Benefits of Track and Trace Software in Hospitals

Track and trace software offer many advantages for hospitals looking to improve their inventory management. Let’s explore some key benefits:

 Improved Inventory Accuracy and Control

• Real-time visibility: Constantly monitor inventory levels to prevent running out or having too much stock.
• Reduced stockouts: Accurately predict demand to ensure critical supplies are always available.
• Reduced overstocking: Keep inventory levels just right to save money and avoid unnecessary purchases.
• Accurate inventory valuation: Real-time data helps assess the value of inventory accurately for financial reporting.

 Enhanced Operational Efficiency

• Streamlined workflows: Automate processes like barcode scanning to reduce errors and save time.
• Faster order fulfilment: Efficient management speeds up the procurement and distribution of supplies.
• Improved supply chain management: Better visibility helps identify and fix bottlenecks.
• Reduced labour costs: Automation frees up staff to focus on patient care.

 Cost Reduction

• Inventory shrinkage reduction: Prevent theft, loss, or misuse of inventory.
• Lower purchasing costs: Optimize inventory levels to reduce purchasing costs and waste.
• Reduced carrying costs: Minimize excess inventory to lower storage and insurance expenses.
• Improved cost control: Detailed spending data helps with better budgeting and cost management.

 Improved Patient Care

• Reduced medication errors: Accurate tracking of medications prevents errors and ensures safety.
• Faster access to supplies: Real-time visibility ensures supplies are available when needed.
• Better utilization of resources: Optimized management prevents waste and ensures effective use of resources.
• Compliance with regulations: Helps meet regulatory requirements for inventory management.

 Data-Driven Decision Making

• Performance analytics: Generate valuable data to identify trends and improve processes.
• Predictive analytics: Analyze historical data to forecast future needs and optimize inventory levels.
• Cost-benefit analysis: Data-driven insights help evaluate the impact of decisions on costs and patient care.

Potential Challenges and Considerations

While track and trace software offers numerous benefits, implementing it in a hospital setting comes with its own set of challenges.

Implementation Costs

Setting up a track and trace system can be expensive. You’ll have to pay for the software and buy equipment like barcode scanners and RFID readers.

You might also need to connect the new system to your current hospital systems, like electronic health records (EHR) and supply chain management.

Additionally, you might have to upgrade your IT setup and pay for consultants to help with the installation and training.

Training and Adaptation

Introducing new technology can face resistance, so it’s important to handle a few key factors for a smooth transition.

First, staff training is essential; employees need proper instruction to use the new system effectively, which requires time and resources.

Managing resistance to change is also important; clear communication and change management strategies can help with this.

Lastly, you may need to adjust processes and workflows to fit the new system, which can be disruptive at the start.

Data Security

Protecting patient and inventory data is important when setting up track and trace systems. To ensure data privacy, strong security measures need to be in place.

Compliance with regulations like HIPAA is important to meet legal requirements. Access to data should be restricted to authorized personnel only, and regular data backups are necessary to avoid data loss.

By tackling these issues effectively, hospitals can fully benefit from the track and trace software while minimizing disruptions.

Conclusion

Track and trace software is proving to be an essential tool for modernizing hospital inventory & asset tracking management provided by Codiant. It provides real-time updates, automated alerts, and useful data that help hospitals run more smoothly, cut costs, and better serve patients.

As technology advances, with things like artificial intelligence and smart devices, this software will become even better, offering more automation and better insights.

If your hospital struggles with managing supplies, track and trace software could be the solution you need. It helps keep things organized, saves money, and ensures you always have what you need on hand. Explore this technology to make your hospital more efficient and focused on patient care.