The Scale of the Problem
Medical device wastage in Indian hospitals is a silent cost driver that rarely gets the attention it deserves. Industry estimates suggest that 10–15% of medical devices and consumables purchased by hospitals are wasted due to expiry, damage, over-ordering, or improper storage. For a large hospital with an annual consumable spend of ₹50 crore, this translates to ₹5–7.5 crore in avoidable losses every year.
Strategy 1: Implement FEFO Inventory Rotation
First Expired, First Out (FEFO) is a fundamental principle that is still not universally practiced. Digital inventory management systems with automated FEFO alerts ensure that items closest to expiry are used first. Leading hospitals report a 40–60% reduction in expiry-related wastage after implementing strict FEFO protocols with technology support.
Strategy 2: Consignment Inventory for High-Value Implants
Orthopedic implants, cardiac stents, and other high-value devices are prime candidates for consignment arrangements. Under this model, the manufacturer retains ownership until the device is actually used in a procedure. This eliminates the risk of expiry losses on slow-moving variants and reduces the hospital's working capital requirement. NHSCC member hospitals have reported 20–30% reduction in implant inventory value through consignment programs.
Strategy 3: Standardize and Rationalize the Product Portfolio
SKU proliferation is a major contributor to wastage. When surgeons have 15 different brands of sutures to choose from, some variants inevitably collect dust. Clinical standardization committees that bring together clinicians and supply chain professionals can rationalize product portfolios by 30–40% — reducing wastage while maintaining clinical flexibility.
Strategy 4: Environmental Monitoring for Storage Compliance
Temperature-sensitive products — biologics, certain pharmaceuticals, reagents — require controlled storage conditions. IoT-enabled environmental monitoring with automated alerts when temperature or humidity falls outside acceptable ranges prevents spoilage of expensive items. The investment in monitoring technology typically pays for itself within 6 months.
Strategy 5: Data-Driven Par Level Optimization
Static par levels set once a year are a recipe for either stockouts or excess inventory. Dynamic par levels that adjust based on actual consumption patterns, seasonal trends, and upcoming surgery schedules keep inventory lean without compromising availability. Machine learning models can recommend optimal par levels for each item at each location within a hospital.
Building a Culture of Zero Waste
Technology and processes are necessary but not sufficient. The most successful waste reduction programs combine technology with a cultural shift — training nursing staff on proper handling, engaging clinicians in standardization discussions, and making wastage metrics visible at every level. When everyone from the CEO to the ward nurse understands the impact of wastage, sustained improvement follows.