Redesigning the replenishment process of medical supplies in hospitals with RFID

Purpose – To present a case study of a hospital nursing unit that has evaluated and approved a 2bin “e-kanban” replenishment system based on passive HF RFID technology. Design/methodology/approach – The case study analysis is based on both qualitative and quantitative data that was collected using (i) semi-structured interviews, (ii) on-site observations and (iii) experience from previous implementations. The data and simulation analysis presented in this paper were validated by key respondents thereby increasing their reliability. Findings – Results indicate that implementing the e-kanban RFID solution in conjunction with the redesign of the ward floor and of the roles & functions can substantially improve business and operational performance. The most important benefits for the hospital are derived from the time saved from non value-added activities that can be transferred to patient care activities and the significant reduction of on-hand inventory at distributed storage locations. The solution is considered an alternative that requires less initial investment than RFID enabled cabinets used in the replenishment of consignment and high value supplies in operating rooms and cardiac catheterization laboratories. Research limitations/implications – There is a need to conduct further research on RFID Supply Chain Management applications in the healthcare sector as this area holds a great potential for performance improvements. Additionally, there is a need to conduct more in-depth research into the isolated impact of RFID technology in comparison to the change management and process redesign that it generates. One key limitation of this research is the case study approach based on a single case. This paper therefore provides direction for practitioners on how to assess RFID’s potential impact in the healthcare supply chain Originality/value – While most of the research on RFID in healthcare sector focuses on active RFID technology for asset management, this research presents a novel RFID application and contributes to our understanding of RFID's potential in intra-organizational Supply Chain Management processes.