Proving the Business Case for the Internet of Things

Cardinal Health opens laboratory to investigate IoT use in medical supply chain

Steve Rogerson
September 22, 2015
In an IoT approach to health care, Ohio-based Cardinal Health has opened its Healthcare Supply Chain Innovation Lab, a research and development facility dedicated to reducing the $5bn in waste in the health care supply chain for devices and implantables.
The 1900 square metre laboratory in Concord, Massachusetts, will serve as a hub for Cardinal Health to explore innovative approaches, such as smart sensors and near-field communication, to bring creative, acute care-centred technologies to some of health care’s most difficult problems.
“In a rapidly growing network of smart devices communicating with each other, IoT has gained significant traction in health care, and while much of healthcare’s IoT focus has centred on patient monitoring applications, we believe medical devices and implantables are ripe for an IoT approach,” said Jean-Claude Saghbini, vice president and general manager for Cardinal Health inventory management. “Building on existing automated cloud-based supply chain solutions, our vision is to create a level of efficiency and connectivity that will transform the healthcare supply chain from a source of savings into a strategic asset that can significantly reduce the total cost of care.”
The centre comprises hardware design, testing laboratories and a customer experience centre, where visitors can interact with integrated products and provide feedback on technologies and services in the development stages. The team is committed to expanding its offerings to bring additional benefits to health care providers and aims to develop services that will accelerate the transfer and analysis of big data and support real-time decision making on issues such as consumption and impending product expiration.
Cardinal Health continues to expand its automated inventory management offerings and for processes related to procedural areas, such as the operating room. Its inventory management products are currently used to track products in more than 2700 hospitals and 68 distribution locations in 41 countries.