A standing order supply program is the simplest fix for the most common supply problem in a clinic, a plant, or a school district: someone has to remember to reorder. Gloves, wipes, masks, table paper, and the twenty other lines that run out on a Thursday do not need a purchasing decision every month. They need a par level, a cadence, and a supplier who ships on the same day without being asked.
What a standing order is, and is not
A standing order is a recurring purchase order for a fixed list of items in fixed quantities, shipped on a fixed schedule, at pricing held for the term. It is not consignment, where the supplier owns the stock on your shelf until you use it, and it is not a blanket PO you still have to release against. The goods ship, the invoice follows, and you adjust the list when your usage changes.
Hospital supply chains use the same idea under the name PAR, periodic automatic replenishment: a set quantity per supply location, counted on a schedule, and topped back up to the level. A standing order applies the same discipline to a facility that does not have a materials management department.
Setting par levels that hold
The par level for each line is the quantity you want on the shelf on delivery day. The formula is not complicated:
- Measure usage. Take the last 90 days of consumption for each line and convert it to a weekly rate.
- Set the cadence. Weekly for high-volume consumables in a large facility, biweekly or monthly for most clinics and offices.
- Add a buffer. Twenty percent for stable lines; more for seasonal lines like respiratory supplies and rapid tests that spike in winter.
- Round to case quantity. Standing orders ship in full cases; the par is the number of cases that cover the period plus buffer.
| Line | Weekly usage | Cadence | Standing order quantity |
|---|---|---|---|
| Nitrile exam gloves, medium | 12 boxes | Monthly | 6 cases of 10 |
| Disinfectant wipes | 8 canisters | Monthly | 3 cases of 12 |
| Exam table paper | 6 rolls | Monthly | 2 cases of 12 |
| Procedure masks, Level 1 | 4 boxes | Monthly | 2 cases of 10 |
The first two deliveries tell you whether the par is right. Adjust once, then leave it alone until census or headcount changes.
Held pricing and Net 30
Standing orders earn pricing that one-off orders do not. The supplier can plan inventory against a known schedule, and that planning is worth a price held for the term of the program, typically a quarter or a year, on the lines in the program. Keystone holds pricing on standing order lines for the term agreed at setup, offers Net 30 for approved accounts, and confirms availability and lead time on every line before the first shipment.
Held pricing does not mean frozen forever. If a manufacturer changes cost mid-term, the program terms say how and when the price moves, with notice. That is still better than repricing every order.
What happens when a line goes on allocation
The value of a standing order shows up when a manufacturer allocates a product. Because the supplier already knows your quantity and cadence, you are a planned customer rather than a spot buyer. Keystone flags allocation on standing order lines as soon as the manufacturer notifies us, proposes an equivalent from the catalog with the lead time shown, and holds the substitute at program pricing when it can. Facilities that pre-approve one alternate per critical line at setup skip the approval delay entirely.
How Keystone sets one up
The setup takes about a week from the first conversation:
- Send the list. Current SKUs, quantities, and delivery address, or last quarter's invoices from your current suppliers.
- Get the quote. Same business day, with equivalents where they save money and lead times on every line.
- Agree the cadence and term. Weekly, biweekly, or monthly, with a delivery day that fits your dock or front desk.
- Approve the account. Credit application for Net 30, W-9 and certificate of insurance on file.
- First delivery. In-stock items ship from Edina, Minnesota in one to three business days; the rest ship direct or through a 490-plus distributor network.
After that, the reorder is off the desk. You get an invoice per delivery, one point of contact for changes, and a quarterly review of the list.
Start with the lines that run out
Pick the five items that caused the last emergency order and put those on a standing order first. Add the rest once the cadence proves out. Browse patient care and exam room supplies for the lines most facilities start with, or contact the sales department with your list to set up a program this week.
Sources
- https://www.owens-minor.com/glossary/what-are-par-levels/
- https://www.ahrmm.org/par-optimization-its-time-review-revise-and-redesign-par
- https://www.capsahealthcare.com/blog/hospital-supply-chain/healthcare-par-inventory-management-best-practices/
- https://www.blyott.com/blog/consignment-vs-traditional-stocking-which-works-best-in-healthcare
