June 30, 2022 – Cardinal Health announced the launch of an inventory reserve program that helps labs and health systems more accurately pre-order respiratory diagnostics before the onset of seasonal flu, strep and RSV. This new program provides clearer demand signals to the supply chain ahead of the season, which helps reduce the friction felt across the healthcare landscape as the season ramps.
The Cardinal Health Laboratory Products Reserved Inventory Program is available for labs and facilities nationwide. Individually tailored to participants, the program leverages data, such as historical utilization, to more accurately predict inventory needs. This approach offers supply assurance for an often-unpredictable respiratory season further complicated by virus co-circulation and COVID-19 surges and potential new variants.
The Reserved Inventory Program launches on the heels of a successful pilot program, which took place in the 2021-2022 respiratory season – a time when a Kaufman Hall survey said 99% of U.S. hospitals and health systems experienced challenges in supply procurement. In a 2022 Cardinal Health survey of pilot participants, most reported fewer inventory constraints after participating in the Reserved Inventory Program and reported being very satisfied and likely to recommend the program to a peer.
Cardinal Health provides a customized utilization report that details a customer’s historic utilization, enabling them to make informed decisions on how much inventory to reserve. Cardinal Health then works with suppliers to procure a specified quantity for each individual customer, based on the customer’s identified volume for the upcoming season. Identifying customer anticipated testing needs provides select manufacturers demand signals in advance of the traditional respiratory season.
Products that are ordered through the program are held by Cardinal Health in reserve until the lab or facility requests them – and customers are guaranteed the quantity reserved. Additional levels of inventory management options are available, including stock rotation and inventory commitment release, which provide flexible options upon program enrollment.