The typical hospital is information poor. It doesn't have accurate data on what it buys. In fact, hospitals lag behind most industries in managing procurement.

Hospitals need to break out logistics costs from the total cost of goods. Rather than have product just show up at the door, they can manage inbound freight, anticipate deliveries, and have visibility into what's coming.

Returning a small number of high-cost products can greatly increase inventory value.

Lose a few of these, or let them become obsolete, and you're wasting significant dollars.