Z5 Inventory: Realizing Savings by Eliminating Product Expiration

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Carl Natenstedt, CEO; Brandon Burris, CTO
Managing and monitoring vast amounts of inventory is a complex affair for all hospitals. Staying stocked with ordinary daily supplies like surgical gloves and gauze and budgeting for more critical products used in life-saving surgeries can get overwhelming day-to-day. The result is that often that supply chain professionals end up with a surplus of medical supplies. It is estimated that a typical hospital supply is overstocked by 15to 30percent to avoid the repercussions caused due to stockouts. As a result, vast amounts of expired medical and surgical supplies go directly to landfills every year in the U.S., and in doing so, hospitals lose over $5 billion annually. This is where Z5 Inventory, a healthcare inventory management platform, helps healthcare providers. The company has made its mission to save money for providers by optimizing their supply chain and eliminating product expiration. With a combination of services and an end-to-end inventory platform, the company enables providers to identify, move, sell, and donate their slow and excess inventory. “Our platform allows providers to identify what they have on hand and remove what they don’t need,” explains Carl Natenstedt, CEO of the company.

Z5 Inventory leverages its logistics capability to move the excess inventory to locations that are likely to use them. To do that, the company uses data analytics to find a suitable location and handles product shipping. “Our optimization process brings huge cost savings to hospitals and healthcare providers,” says Brandon Burris, CTO of the company. Z5 Inventory’s platform helps hospitals streamline the process of taking physical inventories, develop insightful analytics to help them identify savings opportunities, and suggests the best methods for realizing those savings. The company has a specifically designed solution, Z5 Reallocate, which is built on the Z5 inventory platform, which helps reallocate the excess inventory before it expires.

As the platform runs using a modern microservices architecture, it is auto-scalable. When activity surges, the platform scales up its resources to provide its services without affecting users. In addition, Z5 Inventory solves one of the longstanding problems in healthcare inventory management: the disparate nature of catalogs of inventory items. Within the platform, managers can successfully mitigate issues associated with inaccurate inventory data by modifying and reconciling product records. In addition, the platform improves item master data by comparing it against a Z5 Master Catalog, which acts as a single source of information on inventory items supplied by industry manufacturers.


Our optimization process brings huge cost savings to hospitals and healthcare providers

The solution can become a lifesaver at times when the item master misses key information of a particular inventory item. Essentially, with the solution, Z5 Inventory is attempting to improve data quality for the entire U.S. healthcare supply chain.

With its capabilities in data analytics, the Z5 Inventory gives healthcare providers the opportunity to count and value physical inventory. Hospitals can make use of Z5 Count functionality, a mobile application that comes together with the platform to facilitate inventory counting. The solution relegates paper and spreadsheet-based inventory counting to the past and digitalizes the physical inventory valuation process.

Over the past few years, hospital systems across the country have been able to save millions of dollars from being thrown away, thanks to Z5 Inventory’s solutions. One such hospital group, Steward Health Care, which operates over 30 facilities across the country, required a solution to tackle their excess inventory. Using the Z5 Inventory platform, the company pinpointed the exact location of excess inventory and reallocated the same. With the help of scouts who visited the client’s facilities over the course of six months, Z5 Inventory was able to help Steward Health Care move, sell, and donate the unused products valued at over $16 million. The client also donated a portion of their excess inventory, worth $3million, to charity.

“Our platform allows providers to identify the inventory and know how much of what they have in the shelf is actually excess.”

Such success stories are a result of Z5 Inventory’s commitment to their clients and work within the healthcare community. The company has helped several of their clients reallocate unused inventory to realize savings. For the future, to improve its capabilities further and serve the healthcare industry better, Z5 Inventory is augmenting its platform using predictive data analytics, AI, and ML that will drive more savings for its customers. With such initiatives, the company also aims to replace error-prone paper-based processes prevailing in the healthcare industry with digital solutions.

Company
Z5 Inventory

Headquarters
Austin, TX

Management
Carl Natenstedt, CEO; Brandon Burris, CTO

Description
Z5 Inventory is passionate about changing the face of healthcare. The company is on a mission to help hospitals clean up the healthcare supply chain and exceed their annual savings goals. The company provides opportunities for hospitals to move, sell, and donate their excess inventory, thereby reducing the cost burden on the provider. Z5 Inventory leverages its data analytics and logistics capability to move the excess inventory from locations where it is likely to expire to locations where it is likely to be used

Z5 Inventory