Company: White Papers and Blog

 

Supply Chain Efficiencies in the Healthcare Industry

Date: Tue, Apr 14th, 2015 12:00:00 am

Healthcare is big business in America, and providers are hard pressed to find ways to deliver a better and more cost effective product. In the future it seems that more and more organizations will be distinguishing themselves from the competition through improving their supply chain.

In fact, a recent survey conducted by Frost and Sullivan reveals that when it comes to the medical sector, supply chain is vital to meeting profitability targets. Eighty-nine percent of the respondents said that the effectiveness of their supply chain was what really mattered when it came to improving the bottom line for their organization. Moreover, healthcare customers are demanding better pricing. Improvements in the end cost often come about as a result of utilizing the most efficient supply chain.

One of the best ways that healthcare companies can improve their profitability is by gathering data and making the most of it. Much of the most important data relates to ordering patterns. For instance, providers are taking a close look at timing. Customers used to stock up on certain products, sometimes having as many as 20 deliveries of certain items every month. Refinements to their supply chain are providing the same products with the number of deliveries cut down to just once per week. The resulting savings are just what healthcare companies need.

Another useful innovation is the creation of a central distribution center. The disparate parts of an organization's supply chains are brought under one roof where they can be streamlined and coordinated. This means cost savings and a greater ability to corral important data.

Currently, personnel costs top the budget of most organizations in the medical industry. Supply chain is predicted to take that spot by 2020, making it imperative for healthcare companies to take control of this aspect of their business now.