Z5 Reallocate - Move, Sell, and Donate Slow and Excess Inventory
What are you doing with your "slow and excess" stock? You know - the unused inventory that's been sitting in your OR and medical supply closets for more than a year, untouched. Based on data we have collected from over one hundred hospitals, we can safely say somewhere between 15% and 30% of your current medical supply inventory - or about 2% of your annual inventory spend - is slow and excess. This unfortunately is the nature of healthcare. In an attempt to stay up to date with the latest medical advancements and supply products that meet the preferences of clinicians, supply chain managers are often left with owned supply just sitting on the shelf.
The pressure of maintaining the standard of care often leaves little time for you to clear out abandoned product and update PARs. Even if the time existed to collect the product, costly negotiating and restocking fees with each manufacturer hardly justify the value of such a project. What if you could turn your regular physical inventory into an opportunity to drive savings from your slow and excess inventory? The savings could be quite tremendous.
Let's explore three ways you can Reallocate your inventory to realize savings.
Move: When you use the Z5 Inventory Platform, you are able to pinpoint the exact location where product exists down to the shelf level along with its purchase history. Couple that information with our proprietary algorithms, and you can map slow and excess inventory to other facilities or locations with favorable turn rates to burn it down. This approach allows the highest return per dollar of inventory.
Sell: The Z5 Inventory Platform will allow you to identify all of the items that you could be selling outside your organization with a much higher degree of certainty. Z5 will write you a check on products being used elsewhere in our network so you can bypass the piece-by-piece selling process altogether.
Donate: Some inventory may not find an obvious home, but that doesn't mean no one can use it. There are charities and organizations that would be thrilled to receive older, unexpired product. If you are going to pull the product, put it to good use where it is needed. Customers can donate to charities of their choosing. Alternatively, Z5 works with Cherish Uganda a faith-based nonprofit that restores life and creates hope for HIV-positive children living in Uganda.
Like the Z5 Count solution, we offer both turnkey and do-it-yourself options for doing the reverse logistics to pick, pack, and ship. Z5’s team of Inventory Experts are fully equipped to show up on-site and do the work, or we can deliver the data you will need to implement the project yourself.
The Z5 Reallocate solution is built on the battle-tested Z5 Inventory Platform and includes all of the Z5 Count functionality used to take the required inventory baseline. The program is fueled by our vast network of clients - a mix of hospital systems and networks.
Are you ready to crush your savings goals through a reallocation project? Fill out the form on this page and a rep will be in touch.