Impact of Enterprise Inventory Software Optimization on Inpatient Pharmacy Operational Metrics

Introduction: Effective inventory management is a cornerstone of pharmacy operations, ensuring the availability of medications while minimizing waste and controlling costs. Hospital pharmacies face unique challenges in inventory management due to the increasing costs of medications, the regulatory environment, and the need to maintain a consistent supply of medications. When used optimally, enterprise inventory software allows hospitals and health systems to manage medications, simplify workflows, improve productivity, and reduce medication costs and waste. Enterprise inventory software provides visibility into all medication storage areas (including both automated dispensing cabinets (ADC) and the central pharmacy) to enable integrated medication management across the enterprise. There have been multiple articles on analyzing inventory management utilizing various matrix analyses. One study explored inventory management techniques using ABC (Always Better Control) and VED (Vital, Essential, Desirable) analyses. Additionally, one study examined how Lean and Six Sigma methodologies optimized hospital pharmacy operations globally. Lastly, two articles discussed automated dispensing cabinet inventory optimization. One addressed implementing and optimizing Automated Dispensing Cabinet (ADC) technology to enhance medication distribution efficiency, improve patient safety, and support workflow optimization in healthcare settings. The other compared two ADC optimization methods used to adjust 'par levels. Using the available literature, elements can be identified for optimizing inventory and workflow. However, a literature gap indicates a need for best practices in central pharmacy inventory optimization. Research question: How does enterprise inventory software optimization affect operational efficiency? Hypothesis: Enterprise inventory software optimization will improve the rate of medications out of stock within the central pharmacy. Methods: This single-center, retrospective study aimed to evaluate the potential benefits of enterprise inventory software optimization on pharmacy operational efficiencies within a 215-bed, level 3 trauma hospital. The enterprise inventory software workflow optimization intervention began in April 2024, followed by a two-month washout period for operational adjustments and staff education. The study evaluated inventory metrics six months before the intervention (pre-implementation: October 2023 - March 2024) and six months after the washout period (post-implementation: July 2024 – December 2024). The primary objective was to determine the change in inventory out of stock rates within the central pharmacy. The secondary objective was to assess changes in available medications in the enterprise inventory software post-optimization and to evaluate changes in ADC stockout replenishment turn-around-times. All statistical analyses were performed using R Statistical Software (v4.4.1; R Core Team 2024). Results: A total of 152,059 transactions were analyzed across the pre-and post-intervention periods. In the pre-intervention period, there were 70,607 transactions, of which 1,554 resulted in an out-of-stock occurrence, corresponding to a 2.20% out-of-stock rate. In the post-intervention period, there were 81,452 total transactions, with 1,445 leading to an out-of-stock event, resulting in a 1.77% out-of-stock rate. A Pearson’s chi-squared test demonstrated a statistically significant difference in out-of-stocks between the pre-and post-intervention periods (p < 0.001). Conclusion: Overall, this study reinforced the value of enterprise inventory software in improving central pharmacy efficiency, reducing stockouts, and streamlining inventory tracking. These improvements aligned with the project’s goals of enhancing medication availability, reducing inefficiencies, and improving overall operational performance. However, continued monitoring, iterative workflow improvements, and integration with predictive analytics are necessary to maximize its benefits across all aspects of inventory management.

Name thesis:degree_name

Master of Science

Discipline thesis:degree_discipline

Pharmacy Leadership and Administration

Grantor

University of Houston

Year dc:date.issued

2025

Author dc:creator

• Maheshwari, Reena

Advisor dc:contributor.advisor

• Wallace, David

Committee members dc:contributor.committeemember

• Nguyen, Trung
• Varkey, Divya
• Egwim, Oliver

• Pharmacy management

Language dc:language.iso

English

Handle dc:identifier.uri

https://hdl.handle.net/10657/19570

OAI identifier oai:identifier

oai:uh-ir.tdl.org:10657/19570