Supply Chain in Health Care Services With RFID Implementation

Literature Review

The supply cost represents more than 33% of the spending plan in healthcare facilities. As a result, Coustasse, Tomblin, and Slack1 evaluated radio frequency identification (RFID) technology and its impact on cost, product quality, patient health, and supply chain organization. The researchers reviewed the literature to measure the potential effect of implementing RFID in healthcare centers. Results revealed that RFID technology enhances the supply of surgical equipment and improves the efficiency of healthcare professionals. Consequently, RFID implementation lowered the overall cost of supply and improved administrative quality.

RFID is an important innovation in the supply chain management. The technology could be used to synchronize data and the flow of products over the inventory network from suppliers to the purchasers at the ideal place at the perfect time. In like manner, RFID can track returned products through the store network and avert high supply costs.2 It likewise lessens out-of-stock things. The authors conducted a quantitative analysis of 23 US health care facilities. The conceivable outcomes are unfathomable with RFID innovation; however, defeating the difficulties is a challenge for some organizations and enterprises.

Real-time allocation systems have turned into a critical part of many existing universal frameworks. While GPS (worldwide situating framework) has been very fruitful as an open-air location arrangement, it neglects to rehash this achievement in healthcare facilities.3 Various RTLS innovations have been utilized to take care of internal monitoring issues. The capacity to track the area of benefits has numerous applications in health care facilities. The researcher provides a consolidated groundwork of RTLS in human services, covering the numerous alternatives and innovations that are included, and the different conceivable utilizations of RTLS including capital cost reduction and work process. The results revealed that RFID technology significantly reduced the cost of operations.

Studies conducted by Moatari-Kazerouni and Bendavid4 explored the benefits of RFID techniques in the supply chain of surgical items and products. The authors employed a case-study research design to analyze the cost implication of RFID implementation. Results disclosed that product tagging using radio frequency identification technology mitigated sharp practices among nurses. Consequently, the researchers concluded that RFID technology encouraged business processes and cost reduction.

Žnidaršic and Werber5 investigated the infusion of microchips in pharmaceutical products. To understand a patient’s perception of subcutaneous technology, the researchers conducted an analysis of participants in Slovenia. Results showed wide acceptance by the participants under review.

Yazici6 analyzed the adoption processes of radio frequency identification technology. The author discussed equipment tracking, communication, and its impact on cost reduction. Results revealed that RFID technology lowered the cost of suppliers and enhanced overall health care delivery. In summary, the study clearly aligned patient satisfaction and quality of health care delivery to the use of RFID technology.

Gastaldi, Mangiaracina, Miragliotta, Perego, and Tumino7 measured adoption models used to evaluate the benefit of RFID implementation. They emphasized that the model enables doctors to measure the impact of RFID innovation on the supply cost, inventory stock keeping, and patient safety. The adoption model measurement showed significant progress in nursing efficiency. The researchers affirmed that to be effective, RFID technology required full integration within the organization as well as collaboration of colleagues. The authors showed that RFID technology lowered the cost of inventory allocation and storage spots.

Gulcharana, Daudb, Nora, Ibrahima, and Nyamasvisvac8 reviewed RFID limitations and solutions with a specific goal to acquire a better system for healthcare. The proposed study has the capacity to build a solid and dynamic RFID transponder that would help in diminishing staff error in observing and tracking applications. Consequently, the authors found constraints concerning the RFID transponder, including transmission range, the life span of RFID transponder, and the capacity to distinguish numerous labels at peak times. The research findings showed that RFID implementation significantly lowered hospital expenditures.

Mehrjerdi9 reviewed key ideas of RFID technology and examined the way to progress, which includes patient management, nurses, personnel, prescriptions, and records throughout the business. The author revealed that to make administration frameworks utilitarian and effectively operational, RFID technology can be utilized to decrease working expenses through the administration of patients, representatives, hardware, drugs, stock keeping, and managing the loss of assets.

Bendavid, Boeck, and Philippe10 presented a contextual investigation of a healthcare surgical room that assessed RFID-empowered traceability frameworks for the supervision of packages and surgical items requiring product traceability. Results showed that the traceability framework with the restructure of replacement practices encouraged product traceability, enhanced money related controls, costing, updates benefit levels, and diminished stock shrinkage. Effective implementation of the RFID technology in healthcare institutions will cut capital cost, support minimum inventory level, and improve healthcare delivery.11

RFID frameworks have been effectively connected and their reliability demonstrated in different fields, including production, transportation, farming, social insurance, and store spots. Jones, Gupta, and Balasubramanian12 clarified the part RFID innovation can play in guaranteeing the effective supply of essential products and surgical items. Their research revealed that RFID technology has expanded because of its validity and its part in product level tracking.

Lu, Do, Jones, and Coustasse13 explored the effects and impact of RFID on the healthcare supply network. The research findings revealed that utilization of RFID in the clinic supply network is advantageous for healthcare facilities because it cuts expenses and ensures higher quality of health care delivery. RFID can also provide a more secure environment for patient recovery.

Research Gap

This case study demonstrates that investigations on supply chain strategies and management have been carried out in health care facilities. Based on previous literature, it is apparent that constrained investigations have been done in supply chain management with RFID technology. The objective function of the case study shows that health care facilities face challenges such as high supply costs and inventory level inaccuracy. The constraints of the case study include the capacity for storage and inventory level accuracy. The decision variables for the research gap include allocating storage spots, implementing RFID at the storage spots, and assigning the maximum level of inventory.

This study addresses the gap between allocating storage rooms and maximum inventory levels. The variable decisions include hospital storage tanks, implementing Radio frequency identification technology within the storage spots, and the maximum level of inventory. Thus, we will use the storage management system to integrate RFID technology. In implementing RFID in storage spots, we can control the inventory management process by allocating accurate and automated tags to surgical products. The storehouse management system will be used to receive goods, inspect, allocate storage spots, track customer’s demand, and prepare product shipping. Using the store management system in integrating RFID, we can allocate storage spot at lower cost and control the inventory level.

The examination tries to fill the information gap on RFID technology to enhance flexibility and maintain growth. Thus, the research gap could be bridged with the implementation of RFID technology in the supply chain network. Effective implementation of the RFID technology in healthcare institutions will cut capital costs, support minimum inventory levels, and improve healthcare delivery. Consequently, healthcare management can enforce quality checks, minimum inventory levels, and item-level traceability using RFID technology. Thus, an effective supply chain network with RFID can mitigate the constraints of the study.

Bibliography

Bendavid, Ygal, Harold Boeck, and Richard Philippe. “RFID-Enabled Traceability System for Consignment and High-Value Products: A Case Study in the Healthcare Sector.” Journal of Medical Systems 36, no. 6 (2012): 3473-3489.

Boulos, Kamel, and Geoff Berry. “Real-Time Locating Systems (RTLS) in Healthcare: A Condensed Primer.” International Journal of Health Geographic 11, no. 1 (2012): 25.

Coustasse, Alberto, Shane Tomblin, and Chelsea Slack. “Impact of Radio-Frequency Identification (RFID) Technologies on the Hospital Supply Chain: A Literature Review.” Perspect Health Inf Manag 10, no. 1 (2013): 3.

Fisher, Jill, and Torin Monahan. “Evaluation of Real-Time Location Systems in their Hospital Contexts.” International Journal of Medical Informatics 81, no. 10 (2012): 705–12.

Gastaldi, Luca, Riccardo Mangiaracina, Giovanni Miragliotta, Alessandro Perego, and Angela Tumino. “Measuring the Benefits of Tracking Medical Treatment through RFID.” International Journal of Productivity and Performance Management 64, no. 2 (2015): 175-193.

Gulcharan, Nurul, Hanita Daud, Nursyarizal Mohd Nor, Taib Ibrahim, and Elisha Nyamasvisva. “Limitation and Solution for Healthcare Network Using RFID Technology: A Review.” Procedia Technology 11 (2013): 565-571.

Jones, Erick, Shalini Gupta, and Soma Balasubramanian. “Hospital Supply Chain Management by Implementing RFID.” International Journal of Supply Chain Management 4, no. 3 (2015): 5.

Kumar, Sameer, Eric Swanson, and Thuy Tran. “RFID in the Healthcare Supply Chain: Usage and Application.” International Journal of Health Care Quality Assurance 22, no. 1 (2009): 67–81.

Lu, Dan Feng, Hai Do, Anna Jones, and Alberto Coustasse. “RFID and its Impacts to the Hospital Supply Chain.” Management, Marketing and MIS 5, no. 1 (2011): 4.

Mehrjerdi, Yahia. “Radio Frequency Identification: The Big Role Player in Health Care Management.” Journal of Health Organization and Management 25, no. 5 (2011): 490-505.

Moatari-Kazerouni, Afrooz, and Ygal Bendavid. “Improving Logistics Processes of Surgical Instruments: Case of RFID Technology.” Business Process Management Journal 23, no. 2 (2017): 448-466.

Werber, Borut, and Anja Žnidaršič. “The Use of Subcutaneous RFID Microchip in Health Care-A Willingness to Challenge.” Health and Technology 5, no. 1 (2015): 57-65.

Yazici, Hulya. “An Exploratory Analysis of Hospital Perspectives on Real-Time Information Requirements and Perceived Benefits of RFID Technology for Future Adoption.” International Journal of Information Management 34, no. 5 (2014): 603-621.

Footnotes

  1. Alberto Coustasse, Shane Tomblin, and Chelsea Slack, “Impact of Radio-Frequency Identification (RFID) Technologies on the Hospital Supply Chain: A Literature Review,” Perspect Health Inf Manag 10, no. 1 (2013): 3.
  2. Jill Fisher, and Torin Monahan, “Evaluation of Real-Time Location Systems in their Hospital Contexts,” International Journal of Medical Informatics 81, no. 10 (2012): 12.
  3. Kamel Boulos, and Geoff Berry, “Real-Time Locating Systems (RTLS) in Healthcare: A Condensed Primer,” International Journal of Health Geographic 11, no. 1 (2012): 25.
  4. Afrooz Moatari-Kazerouni, and Ygal Bendavid. “Improving Logistics Processes of Surgical Instruments: Case of RFID Technology,” Business Process Management Journal 23, no. 2 (2017): 449.
  5. Borut Werber, and Anja Žnidaršič, “The Use of Subcutaneous RFID Microchip in Health Care- A Willingness to Challenge,” Health and Technology 5, no. 1 (2015): 58.
  6. Hulya Yazici, “An Exploratory Analysis of Hospital Perspectives on Real Time Information Requirements and Perceived Benefits of RFID Technology for Future Adoption,” International Journal of Information Management 34, no. 5 (2014): 617.
  7. Luca Gastaldi et al., “Measuring the Benefits of Tracking Medical Treatment through RFId,” International Journal of Productivity and Performance Management 64, no. 2 (2015): 177.
  8. Nurul Gulcharan et al., “Limitation and Solution for Healthcare Network Using RFID Technology: A Review,” Procedia Technology 11 (2013): 567.
  9. Yahia Mehrjerdi, “Radio Frequency Identification: The Big Role Player in Healthcare Management,” Journal of Health Organization and Management 25, no. 5 (2011): 495.
  10. Ygal Bendavid, Harold Boeck, and Richard Philippe, “RFID-Enabled Traceability System for Consignment and High Value Products: A Case Study in the Healthcare Sector,” Journal of Medical Systems 36, no. 6 (2012): 3474.
  11. Sameer Kumar, Eric Swanson, and Thuy Tran, “RFID in the Healthcare Supply Chain: Usage and Application,” International Journal of Health Care Quality Assurance 22, no. 1 (2009): 67–81.
  12. Erick Jones, Shalini Gupta, and Soma Balasubramanian, “Hospital Supply Chain Management by Implementing RFID,” International Journal of Supply Chain Management 4, no. 3 (2015): 5.
  13. Dan Feng Lu et al., “RFID and its impacts to the hospital supply chain,” Management, Marketing and MIS 5, no. 1 (2011): 4.