what is the hospital supply chain?

While these models have been successful in many cases, they have not been effective in addressing the needs of a supply chain involving many different companies with potentially conflicting objectives. However, if our experience with industrial supply chains is any guide, only limited improvements in healthcare delivery can be achieved through these means.

what is the hospital supply chain?

While these models have been successful in many cases, they have not been effective in addressing the needs of a supply chain involving many different companies with potentially conflicting objectives. However, if our experience with industrial supply chains is any guide, only limited improvements in healthcare delivery can be achieved through these means. All this means that investment in supply chain technology and supply chain cost management must be a number one priority for healthcare and supply chain leaders, especially as they position themselves for the shift to value-based care and look for ways to continue to deliver the highest quality care for less. Like industrial supply chains, the healthcare "supply chain" is made up of multiple independent actors, such as insurance companies, hospitals, physicians, employers and regulatory bodies, whose economic structures, and therefore objectives, differ and in many cases conflict with each other.

Nevertheless, these models can capture many critical aspects of supply chain behaviour, such as the "whiplash effect, in which the variability of orders is amplified as it moves through the supply chain from the consumer to the producers of raw materials (Forrester, 196). In the following section, I will briefly discuss how the study of industrial systems has evolved from individual unit processes to considerations of the complex interactions between many different components of an industrial supply chain. The leader of a supply chain department in hospitals today is most likely to be a c-level manager, which is a true reflection of the degree of importance now associated with optimising hospital supply chains. Misaligned incentives and independent objectives can disrupt the supply chain flow of many healthcare organisations.

The ability of successful companies to make effective supply chain management a source of competitive advantage suggests that there may be useful insights that can provide a starting point for developing a similar level of understanding of certain aspects of healthcare delivery systems. Like supply chains in manufacturing and other sectors, the healthcare delivery system is so large and complex that it is impossible for any individual, or even a single organisation, to understand all the details of its operations. What makes healthcare supply chain management so unique and complex is that all parties involved are independent (meaning they seek to protect their interests), and the different stages of the supply chain can be focused on their own objectives. Software companies offering supply chain planning software for companies with multiple locations is another good indicator of the benefits that companies perceive will accrue to them from effectively managing the different elements of their supply chains.

The same types of problems are present to some extent in industrial supply chains, and a significant body of knowledge has been developed over the years to address them. Investing in healthcare supply chain software can be a cost-saving measure for hospitals due to the efficiency gains that effective supply chain systems would bring.

Samantha Brookhouse
Samantha Brookhouse

Typical pop culture fan. Amateur bacon scholar. Subtly charming pop culture specialist. Social media junkie. Award-winning beer evangelist. Friendly travel maven.

Leave Message

All fileds with * are required