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Healthcare supply chains are going global. By 2025, the global healthcare market will be worth $8 trillion. And by 2030, that number is expected to grow to $10 trillion.
That’s a lot of money. And it’s not just the big pharma companies that are getting in on the action. Small and medium-sized enterprises (SMEs) are also looking to get a piece of the pie. In fact, SME healthcare companies are expected to grow at a rate of 7.5% per year between now and 2025.
There are many reasons for this growth.
- First, there is an increasing demand for healthcare services around the world. This is due to several factors, including population growth and aging, the rising prevalence of chronic diseases, and improved access to care.
- Second, technological advances are making it possible for healthcare companies to provide more sophisticated products and services that can be delivered to patients anywhere in the world.
- Finally, changes in regulations are making it easier for healthcare companies to do business across borders.
This growth is good news for patients worldwide who will have access to better and more affordable care. But it also presents challenges for policymakers who will need to ensure that the global healthcare system is able to meet the needs of an increasingly interconnected world.
Challenges for Policymakers Related to Healthcare Supply Chains
As the world population grows and ages, it is becoming increasingly important for policymakers to address the challenges posed by healthcare supply chains.
- One of the biggest challenges is ensuring enough capacity to meet future demand. This means not only expanding existing facilities and infrastructure but also developing new ways to produce and distribute medical goods and services.
- Additionally, policymakers must ensure that the healthcare supply chain is resilient to disruptions, such as natural disasters or pandemics. This requires investments in risk management and contingency planning.
- Finally, policymakers must address the inequities in access to healthcare that exists both within and between countries. This includes ensuring that essential medicines and supplies are affordable and available to everyone, regardless of income level or geographic location.
By addressing these challenges, policymakers can help ensure everyone has access to the care they need.
Achieving Success in Today’s Marketplace: The Goals of an Effective Supply Chain
Any successful business needs an efficient and effective supply chain to compete in today’s marketplace. There are various goals that a successful supply chain should aim to achieve, such as:
- Reducing Cost
- Increasing Agility
- Improving Customer Service
- Reducing Environmental Impact, Etc.
Businesses can improve their bottom line and gain a competitive edge by working to achieve these goals. Achieving these goals is essential for any business that wants to stay competitive in today’s marketplace.
Exploring the Different Types of Supply Chain Models
Organizations use various supply chain models; however, many policymakers recommend a general framework for the supply process.
The three most common models are:
1. The Manufacturer-centric Model
In the manufacturer-centric model, the organization focuses on its own production process and optimizing its own efficiency.
- The manufacturer-centric model is advantageous because it allows organizations to control their own production process.
- However, it can be disadvantageous because it can result in high inventory levels and inflexible production schedules.
2. The Customer-centric Model
In the customer-centric model, the organization focuses on meeting customer demand.
- The customer-centric model is advantageous because it helps organizations respond quickly to customer demand.
- However, it can be disadvantageous because it can be difficult to forecast customer demand.
3. The Distributor-centric Model
In the distributor-centric model, the organization works with distributors to get products to customers.
- The distributor-centric model is advantageous because it helps organizations improve product distribution.
- However, it can be disadvantageous because distributors may not always have the same priorities as the organization.
Ultimately, there is no single best supply chain model; a particular model’s appropriateness depends on the organization’s specific needs.
Implement These 6 Proven Methods to Improve Your Supply Chain
Many different techniques can be used to improve the effectiveness of supply chains. Here are some of the most popular and effective methods:
Ensuring that your supply chain is flexible enough to respond to changes in demand or production is crucial to maintaining its effectiveness. This can be achieved through various means, such as having multiple suppliers for key components, using just-in-time production methods, or having a robust inventory management system.
Making your supply chain sustainable is not only good for the environment. It can also improve its overall effectiveness. Sustainably sourced materials and components are often of better quality and have a lower environmental impact, leading to cost savings. Furthermore, sustainable practices can help build trust with consumers and other stakeholders.
3. Decentralized Distribution
In many cases, it can be more effective to decentralize your supply chain delivery methods. This allows for faster and more flexible responses to changes in demand or production. Additionally, it can reduce transportation costs and lead to shorter delivery times.
4. Local Manufacturing
Producing goods locally can have many benefits for supply chain effectiveness. It reduces transportation costs, helps support local economies, and can even improve the quality of the products.
5. Eliminating Corruption
Corruption is a major problem in many supply chains, particularly in developing countries. Eliminating corruption can be difficult, but it is crucial to maintaining the effectiveness of the supply chain. One way to do this is to work only with reputable and transparent suppliers.
6. Protecting Consumables and Replacement Parts
Ensuring that you have a reliable source of consumables and replacement parts which is essential for keeping your production lines running smoothly. This can be achieved by working with reputable suppliers and maintaining a good inventory management system.
The global healthcare landscape is changing, and with it, the way supplies are delivered to patients. Aging populations drive this shift, an increase in chronic diseases, and the growth of medical tourism.
To meet the challenges posed by this change, healthcare organizations must implement innovative technologies.
It builds strong collaborative relationships among all stakeholders involved in the supply chain process. Only then will they be able to ensure that patients receive the care they need when and where they need it most.
Learn more on First Line Software’s Healthcare IT Practice