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.

OrganisationPrivate hospital
AreaWard and operating theatre stores
SolutionConsulting + Catalog, Designer and Kanban RFID
Period measured8 months vs the previous year
+13%activity (revenue)
+1%purchasing
−2.3 pppurchasing as a share of revenue
€1.90annual return per euro invested

Cumulative eight months compared with the same period of the previous year.

The challenge

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.

The solution

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.

How Synexia worked

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.

Before

Consulting and baseline

Analysis of the ward stores, ordering circuits and consumption data, with indicators agreed with the hospital before starting.

During

Implementation with the Synexia platform

Catalogue, spaces, flows and replenishment redesigned with Catalog, Designer and Kanban RFID, unit by unit.

After

Indicator follow-up

Continuous measurement against the previous year during and after the implementation, which is the basis for the results of this case.

Catalog · Product Intelligence

Aligned catalogues

A single, cleaned-up product master, consistent between purchasing and each ward store, with homogeneous references and classifications.

Designer · Workflow Intelligence

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 RFID · Flow Management

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.

Results

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.

Change in activity and purchasingActivity grew by 13.2%. Purchasing grew by 1.0%, compared with the 13.2% that this activity would have required at the previous year's efficiency.0+7%+14%+13.2%Activity (revenue)+1.0%Expected at previous efficiency: +13.2%≈ −11%vs expectedPurchasing
Cumulative change over eight months compared with the same period of the previous year. The dashed outline shows the purchasing that actual activity would have required at the previous year's purchasing-to-revenue ratio.

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

IndicatorPrevious yearKanban yearChange
Revenue growth——+13.2%
Purchasing growth——+1.0%
Purchasing as a share of revenue21.4%19.1%−2.3 pp
Revenue per € purchased€4.70€5.20+12%
Purchasing vs expected for the activity——≈ −11%
Where the improvement comes from

85% comes from medical supplies, where Kanban operates

+14.6%

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.

+6.2%

Pharmaceuticals

Performance improves by 6.2%. Purchasing grows by 6.6%, but clearly below the pace of activity.

Return on investment

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 indicatorResult
Project cost (one-off)0.7 cents per € of revenue
Equivalent share of annual supplies purchasing≈ 5%
Kanban savings in supplies1.2 cents per € of revenue
Payback period6–7 months
Return in the first eight months€1.23 per € invested
Estimated annual return (supplies + time)€1.90 per € invested
Beyond savings

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.
Keys to success

What made it work

01

Measure properly

Adjust savings for activity: in a growing hospital, comparing nominal purchasing hides the real improvement.

02

Organise before automating

A clean catalogue and realistic minimum and maximum stock levels are the foundation Kanban works on.

03

Separate the effects

A conservative attribution of the savings due to Kanban makes the return credible.

04

Look beyond savings

The clinical time freed up and reliable availability of supplies are part of the value.

Next steps
  • 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.

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