Automation, outsourcing, digitization: where is hospital logistics heading?

Everyone is doing logistics in some way. Insights from the Swiss Logistics Network Association (VNL) conference shed light on the problems facing many Swiss hospitals. While specialized teams in other sectors ensure smooth material flows up to the last mile, professional hospital logistics often ends at the warehouse exit. As a result, nursing staff spend up to 40 percent of their working time looking for and managing materials. This is time not spent by the patient’s bed. Given the shortage of skilled workers, this time is priceless.

The conference brought together experts from hospitals, logistics service providers and research at the Triemli Hospital in Zurich – right in the heart of practice. The consensus was that as digitization progresses, physical processes are falling by the wayside.

Adrian Pfister, Health Logistics Sector Manager at Swiss Post, presented the concept of “case-specific delivery” and made a strong impression. The combination of physical logistics and digital solutions showed that Swiss Post now sees itself as a solution provider that goes far beyond transport and storage. We spoke to him about the biggest challenges and key levers for a future-proof hospital.

Adrian, the discussions at the VNL conference showed that healthcare logistics is still in its infancy. What’s your perspective?

Adrian Pfister: This impression isn’t entirely deceptive. Hospital logistics is often a blind spot. The potential for optimization is there, but it is not being exploited. The logistics work because everyone pitches in. That’s good, but it can be done better and more professionally.

What do you mean by that?

There are logistics providers in hospitals, but the processes often don’t extend to the last mile. Everyone is doing logistics in some way. Nursing staff spend up to 40 percent of their working hours on non-value-adding tasks, including logistics. This reduces the time they can spend at the patient’s bedside. Given the shortage of skilled workers, this is not ideal.

This is exactly where case-specific delivery comes in, as you presented at the VNL conference. Is Swiss Post’s case cart solution really new?

Case carts have actually been around for some time. But what we have developed further is digital integration into the clinic’s planning processes. That’s the crucial point. Here’s how it works in practice: the orders for the procedure come directly to us after planning. After the picking, the clinic receives an electronic delivery note for material documentation. And after the procedure, when the unused products have been returned, the clinic receives a second electronic delivery note with the items that have been put back in storage. This way, we ensure seamless material documentation and case invoicing with the products we deliver, without any material scanning whatsoever. We have already successfully implemented this at Klinik Seeschau. The stock of materials was significantly reduced, errors were minimized and the availability of materials was optimized. The material arrives exactly when it’s needed.

What is the difference compared to other sectors? If a product is missing, it’s always a hassle.

Of course, if a screw is missing from the hardware store, that’s annoying. But in the operating theatre, one of the most value-added and material-intensive areas, a missing screw has potential consequences for patient health and generates enormous costs. With well-designed logistics, this can be avoided.

Improving efficiency is a perennial issue. Where exactly should hospitals focus their efforts?

I argue that no hospital CEO is against efficiency. The problem is the lack of transparency. The cost of inefficient logistics is hidden in other budgets. When these hidden costs are made visible, the potential becomes obvious. This is precisely where we come in with our digital solutions: our health cockpit makes material flows, inventories and costs transparent in real time. Hospitals can see at a glance where time and money are being lost. It’s not about saving on staff, but about designing processes in such a way that nursing staff can focus more on their actual task: caring for patients.

Many hospitals are reluctant to outsource their logistics to specialized partners. What would you say to the sceptics?

We often hear these concerns and they are understandable. The two biggest reservations are usually the fear of losing control and the fear of higher costs. In practice, however, the opposite is usually true. It is only when basic logistics are run in an absolutely reliable and standardized way that the necessary room for manoeuvre is created to respond to emergencies or unforeseen events in a truly flexible manner. In other words, you gain flexibility, not rigidity. There are also fears that an external partnership will inevitably be more expensive. But it’s important to take a closer look at this. The true logistics costs in the hospital are often not transparent because they are hidden in the personnel expenses of many different departments. When numerous employees frequently take on small logistical tasks, this adds up. We are creating transparency here. We also see ourselves as a partner who works together with the customer to continuously optimize processes, so that costs do not increase, but overall efficiency does increase.

What does this support look like exactly?

Many still see us as simply warehouses and lorries. But we are now a solution provider that digitizes the entire supply chain. We bring best practices from other hospitals and provide support with process and inventory optimization, data management and documentation. There is no need to reinvent the wheel. Control remains with the hospital, only now it is data-driven and transparent.

What is your most important piece of advice for medical decision-makers?

Carry out an honest assessment: how much time do your staff really spend with patients and how much on ordering materials, filling cupboards or searching for replacement items? Ask your operating theatre teams. The answers will surprise you – and these answers are the best starting point for change.