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Optimize Inventory:
Reduce Multiple Brands of the Same Items

If an organization uses more than one brand of any particular item, inventory costs will usually be higher than necessary since a back-up supply of each brand must be kept. Consider ways to reduce the number of brands while still providing the required service.




Examples of Tests of this Change

Hospitals have learned that having just one brand of infusion pump or intravenous (IV) solution not only reduces inventory problems, but also improves safety and saves money.  A single type of infusion pump in the hospital offers these advantages:  Nursing staff have to learn only one set of instructions for programming a complex but commonly used piece of equipment, dramatically reducing errors and decreasing training time.  Central supply needs to keep track of only one kind of pump, and needs to have only one set of service instructions.  If there is a problem with the pumps, a direct line to only one supplier gives the hospital leverage in asking for modifications.  Exclusive relationships with suppliers may also lead to volume discounts. 


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