Hospitals can cut materials costs by managing supply pipeline.
Materials management costs are affected by all the members of the supply pipeline--the manufacturer, the distributor, and the hospital. Hospitals need to develop closer relationships with distributors. By reducing the number of distributors it deals with and by shifting part of its inventory to a principal vendor, the hospital can reduce its inventory and cut materials management costs.
D003132:Commerce; D003363:Cost Control / Q000379:methods; D005376:Financial Management / Q000379:methods*; D005377:Financial Management, Hospital / Q000379:methods*; D006739:Hospital Administration / Q000191:economics*; D006750:Hospital Distribution Systems / Q000191:economics*; D007445:Inventories, Hospital; D008421:Materials Management, Hospital / Q000191:economics*; D014481:United States