Supply Chain Tip of the Week: Navigate fluctuating supply and demand at your facility with a logical unit of measure program

“Logical Unit of Measure” (LUM) programs provide an innovative perspective to more typical “low unit of measure” or “just it time” distribution models.

“Logical unit of measure” leverages data and insights to determine the accurate unit of measure, based on actual usage. Using data to improve supply chain efficiency is crucial during unexpected demand circumstances. An optimized supply chain drives down operational costs, increases fill rate and efficiency, and can help improve the quality of care delivered.

LUM distribution can help health systems mitigate the pressures of fluctuating supply and demand by using Periodic Automatic Replenishment (PAR) levels to determine Days Of Inventory On Hand (DIOH). Look for valuable analytics to help you establish and maintain PAR levels. Those levels include at the nursing unit or department, within the nursing supply room or hospital storeroom, within the health system’s warehouse, within your distributor’s warehouse, and within your own pandemic stockpile.

For more information on how Cardinal Health can support your logical unit-of-measure initiatives, clickhere.

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