13% more activity with almost the same purchasing: Kanban in a private hospital
A private hospital implemented Kanban replenishment in its ward and theatre stores with Synexia. Eight months later, every euro of purchasing generates 12% more revenue, the investment has paid back in under seven months and nurses no longer spend time placing orders.
Cumulative eight months compared with the same period of the previous year.
Absorbing growth without spending growing at the same pace
The hospital was facing a year of strong growth in activity. In the traditional model, more activity almost automatically means more purchasing: ward and theatre supplies are replenished on request, nurses place the orders themselves, and shortages are solved with trips to the main warehouse or urgent orders.
The purchasing department's goal was to decouple the two curves: absorb the growth in activity without spending on supplies growing at the same rate, and free clinical staff from logistics tasks.
Kanban and a review of warehouse management
- Clean-up of the product catalogue of each ward store, aligned with the purchasing master file.
- Redefinition of storage spaces and minimum and maximum stock levels, adjusted to the real consumption of each unit.
- Reorganisation of main warehouse tasks, which now replenishes on a schedule instead of handling one-off requests.
- Kanban replenishment with RFID on the wards and in theatres: supplies are replenished automatically when they reach the reorder point, without nurses having to intervene.
The system went live at the start of the year and within a few months was adopted in 85% of the ward stores.
From consulting to digital operations, with indicators at every stage
Synexia supported the hospital before, during and after the implementation, and provided three solutions from its platform to bring the new model into the unit's daily routine.
Consulting and baseline
Analysis of the ward stores, ordering circuits and consumption data, with indicators agreed with the hospital before starting.
Implementation with the Synexia platform
Catalogue, spaces, flows and replenishment redesigned with Catalog, Designer and Kanban RFID, unit by unit.
Indicator follow-up
Continuous measurement against the previous year during and after the implementation, which is the basis for the results of this case.
Aligned catalogues
A single, cleaned-up product master, consistent between purchasing and each ward store, with homogeneous references and classifications.
Defined spaces and flows
Design of where supplies are stored, stock levels and replenishment flows for each unit, agreed with the teams before reaching the ward.
Kanban method and a digital service
Consumption-based replenishment with RFID identification: the reorder signal is recorded without paper or nursing intervention, and the service works digitally.
More activity with almost the same spending
The right way to measure savings in a growing hospital is not to compare one year's purchasing with the previous year's, but to compare what was bought with what would have been bought at the previous year's efficiency.
The first five months
With the system newly live, activity grew by 15% while purchasing fell by 1.5% in nominal terms. Purchasing as a share of revenue fell by 3.1 points, and purchasing ended up 14% below what that level of activity would have required at the previous year's ratio.
Eight months on: the effect holds
| Indicator | Previous year | Kanban year | Change |
|---|---|---|---|
| Revenue growth | — | — | +13.2% |
| Purchasing growth | — | — | +1.0% |
| Purchasing as a share of revenue | 21.4% | 19.1% | −2.3 pp |
| Revenue per € purchased | €4.70 | €5.20 | +12% |
| Purchasing vs expected for the activity | — | — | ≈ −11% |
85% comes from medical supplies, where Kanban operates
Medical supplies
Every euro purchased generates 14.6% more revenue (from €6.40 to €7.40). Purchasing fell by 1.2% with 13% more activity.
Pharmaceuticals
Performance improves by 6.2%. Purchasing grows by 6.6%, but clearly below the pace of activity.
Investment paid back in 6–7 months
Of the improvement in medical supplies, 60% is directly attributed to Kanban and the remaining 40% to the other warehouse management measures. Even isolating the Kanban share alone, the figures are clear.
| Return indicator | Result |
|---|---|
| Project cost (one-off) | 0.7 cents per € of revenue |
| Equivalent share of annual supplies purchasing | ≈ 5% |
| Kanban savings in supplies | 1.2 cents per € of revenue |
| Payback period | 6–7 months |
| Return in the first eight months | €1.23 per € invested |
| Estimated annual return (supplies + time) | €1.90 per € invested |
Time for patients and supplies when needed
The time nurses used to spend preparing orders is equivalent to at least one full-time nurse, who can now focus on patient care. This time accounts for around 7% of the project's annual return.
In addition, the way the system works brings operational benefits that the hospital is in the process of quantifying:
- No stock-outs: supplies are available when needed.
- No trips to the main warehouse and no last-minute urgent orders.
- No interruptions on the wards due to missing supplies.
- Theatres on time: fewer delays caused by missing supplies.
What made it work
Measure properly
Adjust savings for activity: in a growing hospital, comparing nominal purchasing hides the real improvement.
Organise before automating
A clean catalogue and realistic minimum and maximum stock levels are the foundation Kanban works on.
Separate the effects
A conservative attribution of the savings due to Kanban makes the return credible.
Look beyond savings
The clinical time freed up and reliable availability of supplies are part of the value.
- Measure the stock released in the ward stores.
- Confirm that the savings recur with a full year of data.
- Extend the model to other sites.
Published with written authorisation from the organisation.