The Cost of Doing Nothing: Evaluating Modernization for Hospital Warehouses
New white paper reveals the risks and opportunity costs of maintaining the status quo
DENVER, March 1, 2016 /PRNewswire/ -- The latest white paper from Swisslog Healthcare Solutions challenges hospital supply chain organizations to analyze the real cost of inaction as it relates to their warehouse and distribution facilities.
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"Constraints on capital are real, especially with increasing cost pressures from reduced reimbursement. Hospitals are being forced to choose between investing in infrastructure for patients and clinicians and investing in infrastructure for supply chain and distribution facilities," explains Kent Roberts, Vice President of Business Development for Swisslog. "With an increased focus on how supply chain departments can impact cost, quality and outcomes, it's time to investigate opportunities for expanding their capabilities."
As the functional responsibilities of healthcare supply chain organizations continue to expand, hospital warehouses and distribution centers are reaching capacity. However, modernizing a hospital distribution center requires significant investment, so organizations often choose to postpone or avoid expansion of warehouse capabilities without giving careful consideration to the impact on operational costs and patient outcomes.
"Scrutinizing the real, and often hidden, expenses and the opportunity costs of maintaining the status quo is so critical to building a business case for enterprise software, automation or other warehouse improvements," explains Roberts. "In working with our clients, we find that the benefit of this analysis couldn't be more clear -- because the cost of inaction can easily exceed the price of a modernization project."
The white paper outlines the types of hospital systems that benefit the most from analyzing these costs and presents three approaches for hospital systems to thoroughly evaluate before deciding whether or how to modernize distribution operations. Eight typical situations in a distribution center are identified where the cost of doing nothing may be more expensive than the cost of investments to remedy them. This is further illustrated in a case study of a current Swisslog client.
To download the white paper, "The Cost of Doing Nothing: Evaluating Modernization for Hospital Warehouses," visit the Swisslog website.
Hospital systems evaluating modernization for their warehouse and distribution facilities may also be interested in attending the second annual Supply Chain Consolidation Forum, held by the Journal of Healthcare Contracting. This educational event takes place in Chicago, IL on April 21st.
About Swisslog
Swisslog designs, develops, and delivers best-in-class automation for forward-thinking hospitals, warehouses, and distribution centers. They offer integrated solutions from a single source – from consulting to design, implementation and lifetime customer service. Behind the company's success are 2,500 employees worldwide, supporting customers in more than 50 countries.
Swisslog is part of the KUKA group, a leading global supplier of intelligent automation solutions. www.kuka.com
Editorial Contact:
Beth Riggio
Enterprise Marketing Manager
Swisslog Healthcare Solutions
Phone: 303.373.7952
Email: Email
SOURCE Swisslog Healthcare Solutions
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