Long term care facilities and other healthcare providers that are looking for ways to reduce their operating costs may want to pay closer attention to their supply chain.

The supply chain is an area with many cost-savings opportunities that are often overlooked. By studying your supply chain and understanding what you are purchasing, you can make better strategic decisions regarding your purchasing process and the items you purchase.

For example, purchasing and stocking different brands of the same item is generally more expensive than stocking fewer brands. In addition, it is important to be aware of your reorder point for different items. Determine how much and how quickly you use various medical supplies so that you don’t end up stocking too much of something that you use infrequently. At the same time, make sure to avoid shortages of items that are used frequently by keeping a large supply on hand.