Supply Chain Enabled

Health Systems adapt to a changed World

Published: March 10, 2022
Author: Lorcan Sheehan

Healthcare Supply Chains are adapting to a different World

Every two years, in conjunction with Jamie Kowalski Consulting LLC, PerformanSC seeks inputs from supply chain leaders within health systems, on the evolution of their healthcare supply chain practices.  The research has charted the evolution of health system supply chains since 2012, and in particular the development of centralised supply chain warehousing, direct contracting, and administrative functions in what have become known in the industry as Consolidated Service Centers.

Over the next few weeks we will be launching the research for the sixth report in the Health Systems, Supply Chain Insights series. 

We delayed our 2020 research to the latter half of the year due to the impact of the initial wave of the pandemic.  The fragility of global and local supply chains had been exposed in one of the most severe tests.  Our Health systems report outlined a series of planned changes to create a more resilient supply chain for healthcare.

We often use the expression that the only thing in supply chains that is certain is change.  As we reflected on the theme for this year’s research, the changes in the 2022 landscape became apparent.

  • Expectations of preparedness for subsequent pandemic related shocks
  • Changing attitude towards single source distribution relationships
  • Extended and disrupted manufacturing lead times
  • Transformed container freight lead times and costs
  • Direct labor shortages in front line supply chain roles
  • Impact of inflation with cost pressures on almost every cost line
  • A growing sense from leaders that supplier supply chain performance has deteriorated significantly
  • Increased awareness of geo-political instability on global supply chains
  • Increased awareness of the need for environmental sustainability
  • Continued market consolidation and the need to serve expanded geographic and service requirements

With inputs from our community of supply chain leaders, we have targeted this year’s research on the development of a sustainable supply chain, in the broadest definition of the term.  We will follow up on the planned actions post pandemic, taking a broader look at the actions and practices that will deliver a truly resilient supply chain organisation for the future.

Key areas in this year’s research will include insights into:
  • Developing the supply chain organisation – structure, talent and training
  • Managing supplier performance and developing a resilient supply base
  • Aligning strategy and capacity with the service and geographic needs of health systems
  • Supply chain planning and resource allocation
  • Supply chain visibility tools and metrics
  • Management of transportation and energy costs
  • Environmental considerations – single use goods, eliminating waste, repair and service contracts, measuring emissions

We are indebted to the supply chain leaders that give their time and insights.  In addition, we believe that they too appreciate the opportunity to learn and benchmark their thoughts and performance with their peers.  As always, the inputs provided from individual health systems are kept confidential. Insights and trends are shared only at an aggregate level.  The final report is provided freely to the participating health systems.

We always welcome new health systems to participate in the research, and we also work with manufacturers, technology, and service providers to help them understand how they can best align their supply chains with the evolving needs of health systems.

Contact us if you are interested in participating in or learning more about the research.

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