Inventory Shrinkage in the Post-Pandemic World: Why Visibility is More Important Than Ever

The pandemic accelerated change across every part of the healthcare value chain, and while the most severe restrictions have eased, the ripple effects remain. In the post-pandemic world, hospitals and health systems have permanently altered their operations: vendor access to facilities is more restricted, budgets are tighter, and there is greater scrutiny on supply chain performance. For medical device manufacturers and distributors, this reality makes one issue more urgent than ever—inventory shrinkage.

Inventory shrinkage, or the loss of inventory due to misplacement, theft, damage, or administrative error, has long been a challenge in the medical device industry. But now, in a world where sales reps have reduced access to operating rooms and stock rooms, the problem has grown more complex. When inventory is consigned, spread across multiple facilities, or left unmanaged for weeks, it becomes incredibly easy for high-value devices to slip through the cracks. Each loss doesn’t just represent wasted product; it directly impacts margins, cash flow, and patient care.

A Changed Landscape: Why the Risk of Inventory Shrinkage Has Grown

Before the pandemic, sales reps had more freedom to visit hospitals, check on consigned inventory, and verify what had been used or returned. That visibility served as a safeguard against excessive inventory shrinkage. Today, with tighter hospital restrictions and a heightened focus on infection control, reps may no longer have that same level of access.

At the same time, supply chain pressures have intensified. Global shipping delays, labor shortages, and inflation have driven up costs for raw materials, freight, and warehousing. Hospitals are under pressure to cut expenses, while manufacturers are expected to deliver with fewer resources. In this environment, the cost of inventory shrinkage is felt more sharply than ever.

Consider the downstream effects:

• A missing loaner tray may delay a surgical case, damaging both hospital reputation and manufacturer relationships.
• Unreturned or misplaced implants tie up working capital and inflate balance sheets with unusable assets.
• Out-of-stock scenarios can prevent cases from moving forward altogether, impacting revenue and patient outcomes.

What once might have been absorbed as the “cost of doing business” is now a critical financial and operational risk.

Why Visibility Is the Antidote to Shrinkage

The best way to reduce inventory shrinkage is to eliminate blind spots. In today’s environment, Excel spreadsheets, paper logs, or memory simply don’t cut it. Manufacturers and distributors need real-time, digital visibility across the entire value chain.

With connected inventory tracking tools, companies can:

• Track inventory movement in real time – See where every consigned tray or implant is located, whether it’s in a hospital storeroom, an SPD department, or in transit.
• Confirm usage and replenishment – Know exactly which items were used in a surgical case and automatically trigger replenishment to prevent out-of-stocks.
• Detect anomalies quickly – Spot when inventory goes missing, sits idle too long, or is nearing expiration, so action can be taken before costs mount.
• Run analytics on shrinkage trends – Identify patterns, high-risk facilities, or products that frequently disappear from the value chain.

In short, better visibility transforms inventory shrinkage from a hidden drain into a measurable and controllable variable.

The Role of Technology in Preventing Shrinkage

Technology has advanced rapidly to meet these challenges. Modern platforms, such as ConnectSx, provide the infrastructure to manage inventory not just at the warehouse but all the way through to the point of use. By scanning a barcode, reps and providers can update the status of trays and implants, providing a clear chain of custody without requiring the rep to be physically present.

These systems also allow for better collaboration:

• Providers can confirm when a tray has been received, sterilized, and used.
• Reps can get notified when inventory is ready for pickup or when items are at risk of being lost.
• Finance teams can connect usage data directly to billing, ensuring that no case revenue is lost due to missing documentation.

By digitizing these touchpoints, companies significantly reduce the chances of inventory shrinkage, while simultaneously tightening operational costs and protecting revenue streams.

Building a Leaner, More Resilient Supply Chain

The post-pandemic environment has made one thing clear: companies can no longer afford to treat inventory shrinkage as background noise. Shrinkage is not only a financial problem but also an operational one that directly affects case readiness and patient care.

With hospitals reducing rep access, supply chains under strain, and costs rising across the board, the need for accurate inventory tracking and visibility has never been higher. Out-of-stocks must be prevented, assets must be protected, and every case must be supported with confidence—even if a rep isn’t in the room.

The “new normal” doesn’t have to mean living with the old problems. By embracing digital visibility and smarter tracking, medical device companies can tighten costs, improve accountability, and drastically reduce inventory shrinkage. In doing so, they not only protect their margins but also ensure that patients receive the right device, at the right time, without disruption. To see how much you can save by improving your inventory operation, try out our free ROI calculator.

👉 If your team is struggling with inventory shrinkage or visibility challenges in the post-pandemic era, ConnectSx can help. Our platform delivers real-time tracking, analytics, and communication tools to make sure your inventory is secure, your cases are ready, and your business is resilient.

Schedule a demo today and get the inventory visibility you need!