What are the challenges faced by Healthcare Supply Chain Management?

What are the challenges faced by Healthcare Supply Chain Management?

By Healthcare Tech Outlook | Thursday, December 12, 2019

Healthcare manufacturers face regulatory and compliance challenges every day. Thus, they need a lean supply chain management that helps them at every step.

FREMONT, CA:  Healthcare logistics professionals work in a complex, challenging environment as the companies are always in the lookout for low-cost solutions. However, certain regulatory and quality measures that must be met regardless of the cost. Healthcare logistics demand visibility into the supply chain as the quality and compliance issues are increasing every day. According to a recent study, the supply chain is the second largest expense for healthcare providers. Organizations are looking for a partner to help them create a lean supply chain management that eliminates waste and non-value added activities. To do so, an organization must analyze its supply chain to identify waste, a warehouse network that does not align, has a duplicative inventory, or has an outdated transportation fulfillment strategy.  

Overnight shipping is one of the challenges that organizations face as it adds up cost over time, leads to a lack of capital, lower profitability, and difficulty in expanding. Different products have different profitability, value per unit, demand, and service expectations. Thus, relying on a single supply-chain for products with different characteristics creates inefficiencies.  Organizations must support on-demand shipping with a decentralized warehouse network that allows for quick, cost-effective delivery for medical devices. A practical and lean supply chain will categorize the products according to their characteristics and create a transportation plan that provides

 faster delivery with flexibility.The medical device market is unpredictable. Thus, healthcare manufacturers must align the patterns of patient demand with the production cycle and increase the frequency of the manufacturing process. Slow-moving products and longer lead times can lead to a lack of transparency. Local management of the inventory data creates a lack of visibility as well. Products with field reps or stored at client premises keep the organization the dark. Thus, organizations must use a supply chain management that accounts for what is on hand and place the inventory where it is needed the most.

Healthcare manufacturers that rely on manual data entry and management forgo the benefits of data-based decision making. One of the significant challenges that the healthcare industry faces is the lack of global standards for data exchange, capabilities, and processes. To solve this issue, organizations must go more in-depth with the automated solutions that foster the development of a lean supply chain to reduce wastage. Affordable automated solutions provide greater visibility into inventory, lower operational costs, and shorter lead times.

The healthcare supply chain will become complicated with increasing regulatory requirements, customer expectations, and rising costs. Therefore, organizations must work with experienced providers to simplify operations and overcome the challenges with the supply chain.

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