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A better aligned supply chain and care delivery ecosystem is able to better match replenishment to consumption. By leveraging actual consumption values based on care encounter transactions (e.g. vaccination, medication dispense, etc.), demand uncertainty is reduced. The role of supply chain safety stocks is to forgive uncertainty in the quantity and timing of demand; when uncertainty is reduced, so too can safety stocks be reduced (sometimes by as much as 30%).2 Inventory and workflow efficiencies within the overall healthcare delivery network create cost savings that can be reinvested to support greater reach of existing scarce resources.
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