Digital technology and innovation are considered as substantial forces behind improvements in healthcare services. A key contribution to the commercial success of healthcare institutions is the ability to optimize inventory and logistics performance. The lack of real-time visibility with respect to logistic processes for medical products and supplies leads to inventory issues and administrative burdens to healthcare staff. Overstocking on the one hand causes too high value and quantity of inventory. Some medical products are very high in value with limited shelf life. Mismanagement subsequently results in discarding these products. On the other hand, the impacts of understocking of medical products may even be worse, as shortages can lead to delayed patient care which may yield adverse patient outcomes. When it comes to reordering of medical products, the majority of healthcare institutions operate with a manual or inefficient system where no immediate feedback is available like delivery date, delivery quantities, possible problems with delivery, expired products and recall information. All these activities related to efficiently managing the inventory of healthcare institutions are widely done by the healthcare staff and keep them away from their core tasks, which are nursing and patient care.