Product & Process
May 14, 2024

Ensuring Continuous Availability Through Customized Supply Solutions

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In the complex ecosystem of healthcare—where the flow of essential supplies can be a matter of life or death—the importance of robust supply chain management cannot be overstated. 

Healthcare facilities operate in a dynamic environment, so their supply chains must be resilient and flexible. Customized supply models can help hospitals meet these objectives. Such models can also free up funds and cash flow to support the health system's strategic and long-term goals.

The Need for Customized Supply Solutions

Since patient and public safety is a critical metric for hospital accreditation, failures in this area can have a significant impact. And yet, the standardized supply chain models used by many hospitals often fail to accommodate the nuanced demands of healthcare settings. This can lead to inefficiencies, shortages, and compromised patient care. 

Meanwhile, it’s common for healthcare supplies to be shipped from a warehouse that hospitals neither own nor have access to, which can lead to a loss of transparency, control, and security. In times of supply chain strain, smaller and medium hospital systems may not be prioritized. Even if a warehouse holds 15 days on hand, this can be reduced to only a few days’ supply if there’s a sudden spike in demand. 

Customized supply solutions offer a tailored approach that aligns with each healthcare institution's specific needs and challenges. They can also support the strategic vision of a health system. They ensure that hospitals maintain optimal inventory levels without overstocking or understocking. These solutions can also give hospitals control over their stock.

Customizable Solutions for a Modern Supply Chain

Customized supply models empower healthcare institutions to exert greater control over their supply chain operations while mitigating risks associated with external disruptions. By partnering with a dedicated supplier, hospitals can rely on a trusted ally to navigate challenges such as product recalls, supply chain disruptions, and regulatory changes.

At VIVIT Supply, we have many customized solutions to help healthcare organizations navigate today’s supply chain environment. Our two most popular options are the Consigned Inventory Program and Free Stockpile Program. 

Consigned Inventory Program 

Store VIVIT Supply products in your warehouse and pay for them when you use them, not when you receive them. This risk-free model is collaborative, creating a flexible and beneficial partnership with our customers by providing quick access to a diverse range of products and eliminating the financial burdens that come with carrying inventory.

The benefits of our Consigned Inventory program include:

  • Improved cash flow. VIVIT Supply owns inventory, freeing up cash flow for your organization to use elsewhere. You only pay for the product after you have used it, not when you receive it.
  • Inventory control. You have control over the physical inventory meaning you can directly manage your stock levels and days on hand inventory. VIVIT Supply will be a resource to help with forecasting to ensure we meet your changing needs.
  • Minimized inventory risks. VIVIT Supply retains ownership and inventory insurance of the products stored in your warehouse. This means no upfront investments to receive and hold the product and no risk of being ‘stuck’ with expiring inventory.
  • Enhanced supply security. With products stored directly in your warehouse, you have full security and visibility of your inventory levels. Products are easily accessible within your warehouse, allowing you to respond quickly to changes in demand and usage.

Free Stockpile Program 

VIVIT Supply’s Free Stockpile Program offers inventory dedicated specifically to you, stored at our facilities. Signing up for VIVIT Supply’s stockpile program will minimize your inventory risks, simplify your operational planning, and empower you to rapidly respond to surges in demand. With a safety net of premium VIVIT Supply products, our Free Stockpile Program keeps you ahead in the game.

The benefits of our Free Stockpile Program include:

  • Product selection guidance. VIVIT Supply helps you identify the ideal product selection and healthy inventory levels. We manage the operations and logistics by manufacturing, storing, monitoring, and rotating products.
  • Security and visibility. Your stockpile inventory is backed by our Supply Guarantee Program to honor contract terms. VIVIT Supply’s Open Door Policy allows customers to tour our facilities to view their stockpile holdings first-hand.
  • Current inventory. You will never be left with expiring inventory. We use a First-in, First-out (FIFO) approach to managing all of our inventory. Products in your stockpile are rotated at a regular cadence to eliminate shelf-life concerns.
  • Improved cash flow. We own the inventory, improving cash flow by eliminating costs associated with other 3PL stockpile holdings and management. VIVIT Supply will manage and rotate your stockpile free of charge, with no upfront or maintenance fees.

The importance of accurate demand forecasting

Large forecasting systems generally do not account for the natural cycle of product usage in hospitals. Simply looking backward three months to estimate demand will leave hospitals perpetually understocked at certain times and overstocked at others. 

Good materials planning must take into account more than just historical data. It requires a solid grip on product usage, natural demand cycles, the global supply chain, and international virus trends.

Importantly, our demand planners work with forecasted data, rather than historical data. Leveraging cutting-edge technologies such as predictive analytics, artificial intelligence, and blockchain, VIVIT Supply harnesses the power of data-driven insights to optimize every aspect of the supply chain. These insights allow VIVIT Supply to anticipate needs proactively, troubleshoot potential bottlenecks, and tailor solutions that enhance efficiency and patient outcomes.

The role of product experts in customized solutions

Many of today’s hospital product suppliers and vendors are logistic experts rather than product experts. But at VIVIT Supply, our demand planners are product experts. They deal with a fraction of SKUs compared to demand planners at other mega suppliers, so they are extremely knowledgeable within our product offering. And since demand planning cannot be separated from product knowledge, our planners are best poised to support short- and long-term decision-making. 

Due to their intimate knowledge of our products—from manufacturing to shipment to usage— our planners can alert hospitals to potential issues anywhere along the supply chain. Instead of informing hospitals once a product is out of stock, our team works closely with clients to give them advanced warning of upcoming issues. For example, they can notify hospitals of possible upcoming shortages tied to lack of raw materials or shipping challenges, providing needed lead time for solutioning ahead of any shortage. 

Into the future of hospital supply chain operations

Outdated and inflexible supply models cannot support the needs of modern healthcare organizations and work against a system’s long-term goals. Instead, they need customized supply solutions that support their business needs. 

At VIVIT Supply, we offer value beyond the shipment of necessary medical supplies. We understand that health systems need these supplies—and need them provided in a way that doesn’t force them to give up control or compromise operational continuity or consistency of patient care. 

That’s why we partner with healthcare organizations to deliver these supplies within a business model that provides value beyond the product. By embracing customized solutions, American hospitals and healthcare systems can confidently and resiliently navigate the complexities of the supply chain landscape.

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Looking For That Added Layer of Protection?

Here’s our promise: If we can’t deliver any part of your stockpile when you ask for it, we’ll pay you the full value of the product that’s not available. Find out more about VIVIT Supply’s Guaranteed Supply Program and Price Guarantee Program.
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