Centralized medical inventory is economically superior to stocking 6,000 hospitals
John Mena · a16z Podcast | Drones for Delivery in Healthcare · Jan 2, 2019 · at 8:39
John Mena, VP at UPS, discusses healthcare logistics strategy and inventory efficiency on the a16z Podcast.
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“There's many healthcare-related products that are extremely expensive to store, so you don't want to have Significant amounts of inventory in every hospital in the U.S., 6000 hospitals, you know, it's much more efficient to locate a smaller quantity of inventory in total in, in maybe 25 or 30 locations throughout the U.S., and instantaneously, when those products are needed, pull them out of a very controlled environment, temperature, humidity, controlled warehousing, and get it rapidly to the point of care Within minutes, that's a much better economic model, and the viability of the medication is much better, because in many cases, those medications are not always stored correctly when they're more, when a more dispersed inventory, but when they're in a central, more of a centralized inventory, you can control the conditions that those products are stored in.”
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