Why inventory management systems? A major side effect of the pandemic has been the swift adoption of direct-to-patient and virtual studies. These place far less dependence on traditional research facilities and specialized intermediaries.
Instead, a more adaptable, more mobile solution has arisen, resulting in the rapid popularization of decentralized clinical trials. This type of trial has ultimately inspired a new world order in clinical research and profoundly impacted the clinical supply chain.
Central procurement and inventory management have become integral to these new supply chains. These essential processes for businesses work together to help clinical trial stakeholders save money, improve efficiency, and reduce risks.
Short Cuts
What Are Inventory Management Systems?
Inventory management in the scope of clinical trials ensures that trial sites have the right amount of stock in the right place at the right time. This involves tracking inventory levels, forecasting demand, placing orders with suppliers, and managing the movement of inventory through the supply chain.
Inventory management is important for several reasons.
First, effective inventory management minimizes costs. Maintaining the correct inventory levels prevents both stockouts, which can result in trial delays and costs, and overstocking, which can increase expenses related to storage and product obsolescence.
Second, inventory management enhances operational efficiency. With a clear grasp of inventory levels, businesses can make well-informed decisions regarding production, scheduling, and shipping, reducing waste and improving overall operating efficiency.
Third, inventory management elevates trial efficiency and patient satisfaction. Keeping the right Investigational Medical Products (IMPs) and ancillaries readily available when required ensures fewer additional costs and delays.
Lastly, inventory management mitigates risks. By closely monitoring inventory levels and forecasting demand, businesses can identify potential issues in advance and take proactive measures to address them. For instance, if a trial observes a rising need for a specific IMP or ancillary supply, it can promptly order from its supplier to maintain sufficient stock levels to meet the demand.
Overall, inventory management is an essential function for trials of all sizes. By effectively managing their inventory, clinical trials can reduce costs, improve efficiency, and reduce risk.
Inventory management systems such as Just-In-Time (JIT) and Straight-To-Site (STS) systems are perfect for decentralized clinical trials because they help to manage risk and keep costs down.
It’s been observed that inventory management systems for DCTs (decentralized clinical trials) can reduce the time to complete clinical trials by up to 20%. Additionally, it was found that they can reduce the cost of clinical trials by up to 15%.
Just-In-Time (JIT) Inventory Management Systems
Just-in-time (JIT) inventory management is a system in which goods are received from suppliers only as they are needed. The goal is to have the minimum inventory on hand to meet demand. JIT inventory management is based on the principle that it is more efficient and cost-effective to receive goods just as they are needed rather than carrying a large inventory. This model is based on an order-as-needed basis where demand forecasts and effective supplier relationships are essential.
Straight-To-Site (STS) Inventory Management Systems
Straight-to-site (STS) inventory management is a system in which goods are delivered directly to the customer’s site, bypassing the need for warehousing and distribution. This can be a more efficient and cost-effective way to manage inventory, especially for businesses with a large or complex supply chain.
How to Set Up An Inventory Management System
There are a few key steps to setting up an inventory management system:
1. Identify the Parameters
What do you need to track in your inventory? This could include the product type, quantity, location, and value.
2. Choose a System
A variety of inventory management systems are available, both manual and automated. Choose a system that fits your needs and budget. For decentralized clinical trials, the JIT and STS models are ideal.
3. Set Up the System
Once you have chosen a system, you will need to set it up and enter your inventory data. This may involve creating product codes, entering quantities, and assigning locations. In cases where this scope is too intricate, particularly in the trade and customs compliance space, you may want to outsource this process.
4. Find Reliable Partners
If the parameters of the trial are highly complex or intensive, outsourcing services such as trade and customs compliance is a highly functional option.
5. Train Respective Staff
Once the system is set up, you will need to train your staff on how to use it. In cases where project management is outsourced, staff will still require training on the specific protocols. This includes entering and updating inventory data, generating reports, and placing orders.
6. Monitor and Adjust the System
As the trials grow and change, you will need to monitor and adjust your inventory management system accordingly. This may involve adding new products, changing locations, updating your service providers, or inventory tracking procedures.
Key Takeaways
In conclusion, the transformative impact of the pandemic has accelerated the adoption of decentralized clinical trials, highlighting the crucial role of inventory management systems. Central procurement and Inventory management have emerged as fundamental pillars of these dynamic supply chains, enabling clinical trial stakeholders to optimize resource allocation and enhance overall performance.
Inventory management systems tailored for decentralized clinical trials have demonstrated remarkable potential.
By adhering to a few key steps, businesses can optimize their inventory management processes, bolstering cost-effectiveness, operational efficiency, customer satisfaction, and risk management. Ultimately ensuring the seamless execution of clinical trials and enhancing the overall success of multiple phases of clinical trials.
Interested in streamlining your project management? Reach out to TecEx Medical today.
