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EDUCATION
Enhancing Hospital Supply Efficiency and Cost Savings Through Lean 5S Methodology

By Renato Revilla, MSN, RN, CNN, MEDSURG-BC, CNE,
Professional Practice Leader, Houston Methodist Hospital

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By maintaining clean, properly arranged and efficient supply rooms, hospitals can significantly reduce waste and save money. Lean 5S is one such strategy, where 5S stands for Sort, Set in Order (Straighten), Shine, Standardize and Sustain (Kubeck & Lee, 2025). This method helps staff remove unnecessary items, logically organize supplies and keep supplies easily accessible. The benefits are immediate, including cost savings and smoother workflows. For example, a medical-surgical unit team reorganized the supply room using 5S principles. They removed unnecessary or rarely used items, grouped similar supplies and clearly labeled storage areas. As a result, daily supply costs dropped by nearly 50% — from about $27,500 to $13,200 over four years. Eliminating 73 extra items also saved staff time, reduced reordering and improved efficiency (Kubeck & Lee, 2025). Similarly, in the Neonatal Intensive Care Unit (NICU), staff tested supply access before and after reorganization with a scavenger hunt. After implementation, search times dropped by nearly one minute, and accuracy improved from 47% to 87%. Removing expired or unused supplies resulted in savings of over $17,000. Supply rooms were color-coded, items labeled in large fonts and checklists added for regular upkeep — ensuring order even during staff transitions (Yaglowski, 2024). Beyond time and cost savings, structured supply systems help hospitals control expenses during global price increases. Monitoring usage and adjusting reorder levels prevents overbuying, while just-in-time (JIT) ordering reduces excess inventory and waste. Sustainability efforts include diversifying suppliers and safely reusing single-use items, such as blood pressure cuffs and surgical staplers, thereby lowering costs and reducing environmental impact. Staff engagement is critical: training, accountability and sustainable practices foster a culture of continuous improvement at Houston Methodist. When staff are informed and involved, hospitals can optimize resources, streamline workflows and deliver better patient care — the ultimate goal of these strategies.
References:
Kubeck, H., & Lee, B. (2025). Redesigning supply rooms in a medical-surgical telemetry unit using 5S Lean methodology: Reduced waste, sustained cost savings, and enhanced stewardship. Nursing Management, 56(5), 22–29. https://doi.org/10.1097/nmg.0000000000000286 Yaglowski, J. (2024). Implementing the Lean 5S process improvement to boost efficiency and cost savings in hospital supply rooms. Nursing, 54(3), 36–42. https://doi.org/10.1097/01.NURSE.0001007648.07632.3b