Scenario

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Part 2

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Part 2

Andy's conversations with peer managers are interesting and enable him to nurture important cross-functional relationships. However, they don't yield information that he can apply specifically to what he does in purchasing. But his conversation with his friend Kevin at the other hospital proves much more valuable.

Kevin tells him about a new electronic system that his group has implemented to keep track of supplies inventory. The nurses' stations at his organization now have supply units that resemble vending machines. When a nurse or doctor needs a supply, they go to this unit, punch in a few codes, and the item is dispensed. The device updates—in real time—how many units of each supply have been used and when. This information is simultaneously synchronized with inventory records to ensure that supplies don't run low. When inventory reaches a certain level, the system automatically sends a purchase requisition to the vendor electronically. This new system, Kevin tells Andy, has vastly improved the speed and efficiency of the purchasing process. The best part, he adds, is that his department no longer has to deal with paper requisitions.

Intrigued, Andy calls a colleague in IT and asks if such a system could be implemented at his hospital. She thinks it's conceivable. But, she warns, it would require a substantial capital investment.

Weighing his IT colleague's comments, how might Andy proceed?

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