Publication | BRG

Optimizing Periodic Automatic Replenishment (PAR) Levels Using Enhanced Data and Clinical Guidance

Joseph Arruda and Nick Spontak

January 20, 2021

Healthcare organizations use Periodic Automatic Replenishment (PAR) to assist in keeping the right amount of inventory on hand to avoid excess overstock and risk of product expirations. Traditionally, hospitals have relied on the experience and firsthand working knowledge of inventory management technicians to keep their shelves stocked with needed supplies. However, managing manually based on “gut feel” and/or feedback from nursing can result in missing products or inaccurate inventory ordered in comparison to usage. Manual PAR management historically has created excess costs from rush orders, demand calls, inefficient use of labor (clinical resources), product expirations, and unnecessary rework. It is often too complex or time consuming to pull accurate data, leading to a lack of critical reporting data required to manage product inventory properly throughout the organization.

Implementing standard PAR management operating policies and procedures will reduce cost and variation, create efficiencies, and improve quality of care. Such procedures include training, clinical collaboration, access to clean data, and monitoring easy-to-understand performance improvement metrics.

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