Streamlining Healthcare Compressed Gas Logistics: Delivering Compliance, Efficiency, and Reliability for Leading Hospital
Challenge
A large, multi-site healthcare system was struggling to manage the complexity and risk inherent in compressed gas logistics. With responsibility for over 450 delivery points and more than four thousand medical gas cylinders moving each month, their supply chain team encountered frequent inventory blind spots, manual tracking errors, and unpredictable demand. These issues resulted in excess cylinder rentals, critical shortages, compliance gaps, and increased operational costs. Staff were burdened with administrative tasks and lacked the tools to ensure continuous compliance with The Joint Commission and hospital regulatory standards. Overall, the organization lacked real-time visibility, standardized processes, and actionable analytics to optimize safety, cost, and performance.
Solution
Canon Healthcare Logistics delivered a comprehensive, technology-driven compressed gas management solution tailored for healthcare environments. The engagement began with a structured transition and risk-mitigation process, aligning all operating procedures with Joint Commission requirements and hospital best practices. Canon’s on-site logistics professionals took full ownership of the gas inventory lifecycle—including receiving, storage, delivery, reconciliation, and returns—across every campus and distribution point.
Canon’s solution featured real-time inventory tracking through the deployment of a digital platform that monitored every cylinder’s location and volume. This ensured chain-of-custody visibility and automated proof-of-delivery at each step. Operational transparency was achieved with customizable dashboards and KPI reporting, enabling collaborative monthly and quarterly business reviews to highlight trends and identify opportunities for improvement. Compliance was assured by embedding standard operating procedures, conducting daily safety audits, and establishing escalation protocols, which together reduced the risk of violations or penalties. The on-site teams were extensively cross-trained, ensuring uninterrupted support during staff absences or surges in demand. Continuous improvement was fostered through facility mapping, PAR level labeling, and weekly communication boards that reinforced safety, quality, and productivity. Additionally, the application of 5S and lean principles ensured organized, compliant storage environments and ongoing process audits, which strengthened accountability and efficiency throughout the operation.
Results
With projected annual savings of $100,000, Canon’s compressed gas management program delivered measurable improvements across multiple dimensions. Safety and compliance were significantly improved by implementing Joint Commission-aligned SOPs, rigorous daily audits, and maintaining cross-trained staff, which together minimized violations and maximized regulatory readiness. Real-time tracking and automated reconciliation reduced rental charges and billing errors by eliminating excess rentals, reducing losses, and improving billing accuracy. Productivity and accountability increased as Canon’s technology-driven approach relieved staff of manual reconciliation and administrative burdens, allowing them to focus on patient care. Enhanced visibility and control were realized through custom dashboards, KPI reporting, and data-driven labor planning, which enabled supply chain leaders to rapidly identify improvement opportunities and validate staffing levels. Lastly, standardized operations across all facilities ensured consistent, high-quality service delivery and supported future scalability.
Canon Healthcare Logistics empowered the healthcare system to fulfill its core mandate by ensuring every department received the critical supplies it needed, exactly when and where required, to support the highest standards of patient care. By shifting the operational burden to Canon’s expert team and proven platform, leadership gained peace of mind, mitigated risk, and unlocked measurable improvements in safety, efficiency, and cost control.