Supply Chain Management and Unique Challenges in the Health Care Industry

Dave Ohnmeiss

Dave Ohnmeiss

Abstract

The healthcare system is an industry that provides some of the most unique challenges to supply chain professionals. This article discusses some of the challenges and their impact on health care.

Abstract

The healthcare system is an industry that provides some of the most unique challenges to supply chain professionals. This article discusses some of the challenges and their impact on health care.

Supply CHAIN MANAGEMENT

Unique Challenges in the Health Care Industry

Supply CHAIN MANAGEMENT

Unique Challenges in the Health Care Industry

Table of Contents

1. Introduction

2. The Challenge

A. Adaptability

3. Collaboration and Cooperation

A. Relationships

B. GPO’s role

C. Sourcing

4. Inventory and Supplies

A. Overstocking and Understocking

B. Product Standardization

C. Stockouts

5. Information Technology and Data Management

6. Finances

7. Conclusion

8. Bibliography

Introduction

The healthcare industry is a multi-billion dollar industry and is fully immersed into a global economy that faces many unique challenges in supply chain management. The healthcare system is so large and complex that it is impossible for any individual, or even any single organization, to understand all of the details of its operations (Uzsoy). Some of the challenges that are explored will be the ability to adapt to a changing system, collaboration, cooperation, development of relationships, sourcing, product availability, demand and supply, technology, data management and the various financial aspects that are associated with supply chain management. A supply chain is about linking together elements that are crucial in the flow of goods in any industry and that makes each one of these areas just as significant as the others.

The Challenge

Adaptation to a new system presents its own unusual set of challenges. Adapting to a new and modern way is certainly a step in the right...