Why Supply Chains Are Essential to the Healthcare Industry

Sep 27, 2018Supply Chain Management

You may be wondering: what does the healthcare industry have to do with supply chains?

As the healthcare industry shifts from fee-for-service to quality-over-quantity (also known as value-based care), it is opened up to the supply chain world as a management system.


The Hinderance of Fee-for-Service

The worry of cost, effectiveness, and delivery of a product can prevent a hospital from running at maximum efficiency. In fact, a report from Cardinal Health shares that only one-third of hospital decision makers believe that their hospital supply chain is functioning at maximum efficiency.

So what about the other two-thirds? They feel that they are stuck in some sort of in-between: one foot in fee-for-service and the other foot in value-based care.

Healthcare providers have also shared that they are unsure of what products are needed, leading to devices sitting on a shelf collecting dust. These devices should be in the hands of a surgeon in an operating room, instead of costing the hospital and patient time and money.


The Benefit of Supply Chains

When a healthcare provider chooses to use supply chains to help manage the purchase and distribution of goods and supplies, it allows the hospital to focus on care of patients.

Healthcare supply chains allows for a natural flow of relationships from suppliers to customers. Supply chains allow for the efficient delivery of goods and supplies at a low cost. This will, in return, ultimately lower the cost of an average visit to a hospital in the future.


Implementing A Supply Chain

The implementation of a supply chain, especially in the healthcare industry, can be tricky. Supply chains often go beyond the product ordering, shipping, and delivery; it also involves the human side of supply chains: the communication between hospital directors, physicians, patients, and of course the supply chain company.

Once the supply chain is implemented, however, the productivity of a healthcare system will vastly improve.

We are excited about the changes taking place in the supply chain industry. We look forward to collaborating with healthcare organizations to help them create an effective solution for their needs in order to serve their faculty, patients, and directors successfully.

Interested in learning more about supply chain management? Contact us to get started on creating your custom solution today.


Our capable and experienced team is standing by to assist organizations and supply chains across the globe. Click the button to get in touch with our team.

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